BNN Bloomberg: Gifting Money to Adult Children - Insights from Shulman & Partners

As housing affordability continues to challenge families across Ontario, more parents are stepping in to help their adult children purchase their first homes. These contributions, often provided as gifts toward a down payment, can feel like a practical solution in a competitive real estate market. However, as discussed in a recent BNN Bloomberg segment, these financial gestures can carry unexpected legal consequences when children enter into marriages or common-law relationships. Shulman & Partners LLP shared insight on how gifted funds may be treated if a relationship later breaks down, and why families should think carefully before transferring significant assets. The discussion highlights how differences between married and common-law couples, along with the absence of proper agreements, can expose parents’ contributions to division, creating risks that many families do not anticipate.

During the interview, a growing issue facing Ontario families was addressed: parents providing financial assistance to help adult children enter the housing market without fully understanding how those funds may be treated if the child’s relationship ends. With rising home prices and interest rates, parental gifts have become increasingly common, particularly for down payments. However, the legal treatment of those gifts depends heavily on the nature of the child’s relationship.

For married couples, funds gifted toward the purchase of a matrimonial home are generally subject to division if the marriage ends. Even if the money came from a parent and was never intended to benefit the other spouse, it may still be divided equally unless steps are taken in advance to exclude it. Shulman & Partners LLP explained that a marriage contract can be used to restrict or exclude the division of gifted funds, even though many people find these agreements uncomfortable to discuss. The interview emphasized that early and candid conversations make these arrangements easier to implement and less contentious.

The analysis then turned to common-law relationships, which are often misunderstood. While Ontario does not have the same property division regime for common-law couples as it does for married spouses, this does not mean gifted assets are automatically protected. If a parent’s gift is used toward jointly owned property, or if both partners are on title, the value of that contribution may still be divided upon separation. In these situations, a cohabitation agreement serves a similar purpose to a marriage contract by clarifying how assets, including gifts, will be treated if the relationship ends.

The discussion also addressed timing. While marriage contracts and cohabitation agreements can be entered into after a relationship has begun, it was noted that securing agreement later can be more difficult. Raising these issues early helps avoid misunderstandings and reduces the risk that one partner will feel blindsided or resistant.

Finally, the interview highlighted the limits of private agreements. Issues involving children, such as custody and access, cannot be contracted out of in advance, as courts will always prioritize the best interests of the child. Overall, the segment underscored the importance of understanding how gifts intersect with family law and why proactive planning can help families avoid costly disputes later on.

Watch the full BNN Bloomberg segment here.

This media appearance is part of Shulman & Partners LLP’s ongoing contributions to Canadian family law discussions. Explore more of our media features in our In the Media  archive.