570 News: Parents Helping Buy Homes - Featuring Laura Paris, Shulman & Partners

As housing prices continue to rise, many parents are helping adult children enter the market by gifting or lending money for a down payment. In an interview with 570 News, Laura Paris, Associate Lawyer at Shulman & Partners LLP, discussed how these contributions can create legal and financial complications if the child is in a marriage or common law relationship, or enters one later. Laura explained that families often focus on the immediate goal of buying a home, without realizing how the money may be treated if the relationship breaks down. Her comments highlight why clarity and documentation matter in Ontario, especially when significant sums are involved and the home may later be treated differently under family law than people expect.

“It’s important, especially when you’re dealing with a loan that’s between non-arm’s length parties, that you do have those formalities in place so that there’s no question at a later date as to whether or not it was intended to be a true loan.”
— Laura Paris, Associate Lawyer at Shulman & Partners LLP

In the interview, Laura spoke about a growing reality for many families: parents providing large sums of money to help adult children buy a home. She noted that in Toronto and the GTA, housing prices have skyrocketed, while incomes have not increased at the same pace. As a result, more millennials entering long-term relationships are relying on family assistance to get into the real estate market. Laura emphasized that these arrangements need careful thought because the legal implications can be significant if the home is shared with a spouse or later becomes part of a domestic partnership.

Laura explained that parental contributions usually fall into two categories: gifts and loans. While a gift does not need to be repaid, a loan is meant to be paid back, and that distinction can become critical later. She pointed out that loans between parents and children are often informal, interest-free, and technically repayable on demand, but many parents never enforce repayment. When that happens, confusion can arise about whether the money was truly intended as a loan or whether it was described that way to try to shelter funds. Even when there is a paper trail, the surrounding circumstances can still create disputes if the loan is not treated like a real loan.

She also discussed why it is important to plan ahead with agreements such as a cohabitation agreement or a prenuptial agreement, called a marriage contract in Canada. These agreements can clarify whether funds are meant to be gifted or loaned, and whether the money is intended to be shared with a partner. Laura highlighted how timing can complicate matters, including situations where money is advanced when a child has no partner, and then a relationship becomes serious later.

She also addressed a common misunderstanding about property and fairness. People often assume that if money came from one side of the family, it should automatically be protected, or that having title in one person’s name settles the issue. Laura noted that family law can treat a matrimonial home differently, and that transactions involving it can create risk even if the money was brought into the relationship. She also explained that in common law relationships, claims may still be available, and even the availability of a claim can create stress and expense, especially when records are missing years later.

Her practical message was to document intentions clearly and early. She compared relationship contracts to insurance: something people hope they never need, but something that can reduce conflict, uncertainty, and cost if the relationship breaks down.

Listen to the full 570 News 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.