From living solo to households that represent different combinations of people living together, the modern family can include a variety of family structures. Each has unique needs and financial planning can be complex.
While not everything we cover in this recording will apply to you, we will cover key points for building a financial roadmap that are likely important to most families.
We'll cover three main topics today:
- Financial differences between legal marriage and common-law relationships.
- Financial planning for single Canadians, and
- Unique planning needs in today's modern world.
According to a 2021 Stats Canada report, 57% of adults were living with a spouse or partner. There are key differences between legal marriage and common-law partnerships:
- Marriage is a formal, legally recognized union.
- Common-law partnerships are marriage-like but without a formal ceremony.
- Most provinces don't automatically give common-law partners the same rights as married couples.
The definition of common-law relationships can vary depending on the context, like estate planning, taxes, or immigration. And these differences can significantly impact your financial planning.
Legal benefits of marriage include property sharing under family law, automatic inheritance rights, and potential tax advantages.
Married couples and common law partners are taxed the same as anyone else, but the benefit of these unions is that they can access some tax benefits not available to single people. For example, the spouse or common-law partner amount, splitting tax credits and spousal RRSPs.
Property laws, which are under provincial jurisdiction, refer to things you own. This includes real estate property, such as land and buildings, but also personal property, such as objects you own. While there can be differences from province to province, generally, married couples automatically have equal property rights, even if they separate or if one spouse passes away. This is not true for common-law couples.
For common-law couples, anything you buy for yourself with your own money belongs only to you. If you’d like your partner to inherit something, you can either add them as a joint owner to the asset or name them as a beneficiary in your will. Generally, there are no automatic property rights to divide assets, including houses and pension plans.
When common-law partners separate, the pension holder usually keeps the full value. Common-law partners only share pension value with an agreement, court order, or arbitration award. And courts rarely order pension sharing for common-law couples. Married couples, however, typically share pension values automatically.
Provincial laws also govern estate law, and definitions of common-law relationships can vary significantly across provinces and territories.
Some provinces may not automatically recognize common-law partners as legal spouses for inheritance purposes, potentially impacting how assets are distributed upon death if a will isn't in place.
‘Intestacy’ refers to a situation where someone dies without a valid will in place, i.e. they die intestate. If your unmarried partner dies intestate, you may not be considered their next of kin and it would be up to the court to decide if you receive any of their estate. This is not the case for married couples, who have more protection in estate law.
Marriage automatically revokes your will (unless explicitly declared in the will that it is made in contemplation of the marriage) in every region except for Ontario, BC, Quebec, Saskatchewan, and the Yukon. Common law status does not affect the validity of a will.
Spouses have the right to claim against the estate under family law. Common law partners may have limited rights, varying by province and duration of the relationship.
The best way to make sure that an unmarried partner is protected after their partner’s death is to have them named as a beneficiary. With a valid will and the partner named as a beneficiary, the estate would be distributed according to the wishes of the deceased partner.
It’s also important to name an unmarried partner as a beneficiary of any insurance policies and investment accounts that you have. This helps make sure that your surviving spouse or partner is financially secure if you pass away. When you first open an investment account, like a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP), you will typically be required to name a beneficiary of the account. It’s important to keep any financial affairs up-to-date as your relationship status changes.
Now that we’ve reviewed the legal framework of married and common-law status, let’s consider being single.
Although we discussed earlier that the 2021 Stats Can report showed a majority of adult Canadians – at 57% - are living as part of a couple, when you dig into the report further, compared with previous generations, today's younger adults are less likely to be living as part of a couple—as alternatives like living alone, with roommates or with parents have become more common. While 68% of people aged 25 to 29 were in a couple in 1981, this was the case for only 39% of people in this age group in 2021.
Living single isn’t just for young folks. Some people are single 100% of their lives, choosing consciously not to be part of a romantic couple. Others are single at various points in their lives, perhaps due to divorce or death. The numbers are significant: a 2022 Stats Can study reports that around 35% of Canadians over age 65 are single due to divorce or separation, being widowed, or never having married.
Over the next few slides, we’ll talk about some of the financial hurdles of being single, as well as some tips to consider.
People who live alone have always had large costs to carry on their own. But the inflation Canadians have faced over the past few years has meant nearly everything from groceries, to gas, to rent, and the rate of interest you pay on your mortgage and other debt, has gone up — and financial security has gone down. Even singles with high paying jobs are feeling the pinch, in part due to what’s referred to as “the singles tax”. The “singles tax” is the difference between what a single person pays for something such as an apartment over the course of the year compared to what that same apartment would cost, per person, if it were shared by a couple.
According to a 2021 Statistics Canada’s Survey of Household Spending, a one-person household had total expenditures of $49,661 in 2021. By comparison, couples without children had total expenditures of $91,121. This implies cost savings of about 17% for the second person in the household.
Shelter costs were the largest expense for all households in 2021. Couples without children coughed up about 30% of their household spending on shelter. By comparison, singles spent 37%.
Not only do singles need to pay this higher percentage of earnings to live during their working years they also need to save more on a per-person basis than those as part of a couple do, to provide themselves with the same standard of living in their golden years.
Couples also have more tax advantages than singles. For example:
- The couple can focus on contributing to the higher-income spouse or common-law partner’s Registered Retirement Savings Plan (RRSP) to get a larger tax refund as a couple.
- The higher-income spouse can contribute to the lower-income partner’s retirement savings through a spousal RRSP.
- The couple can combine or allocate tax credits like donations or medical expenses to result in a larger tax reduction.
- The couple can split the higher-income spouse or partner’s eligible pension income in retirement, including Registered Retirement Income Fund (RRIF) withdrawals after the age of 65.
There are other strategies out there as well, but the point is this: couples can legally and strategically minimize tax more easily than a single taxpayer can.
There were just over 2 million widows and widowers (married and common-law) living in Canada as of July 1, 2022.
Widows outnumbered widowers by a three to one ratio in 2022. When you think widow, you may be picturing a woman in her 80s or 90s. But the reality is that the average age for widowhood in Canada is 56.
For both men and women, the financial impact of becoming a widow or widower is most pronounced for those who lose a loved one before the age of 65. The percentage of men and women living in low-income increased substantially for both men (at a 10.3% increase) and women (at a 14.2% increase) in the first year after being widowed.
Financially, widowhood can be devastating. There’s often not enough time to rebuild assets and the survivor can expect to live many more years. In a Merrill Lynch/Age Wave study:
- 53% of widows had no plan for death of a spouse
- 76% of widows wish they were more involved in financial decisions
In addition to widowhood, divorce is also a common means to becoming single. And a term we’re hearing more and more these days, is “Grey divorce”. This typically refers to divorce after age 50 or 55. Ending a marriage when you’re in this age range, presents unique challenges, especially when it comes to your personal finances.
Financial considerations include the cost of the divorce itself as legal fees can be quite significant in an adversarial divorce. If you’re able to manage your split amicably, you can spend less.
Understanding and taking ownership of your money can be intimidating. That’s especially true if your partner has always managed your family’s finances. Reviewing what you own and what you owe can help you make informed decisions about the future.
It pays to take a pragmatic look at your financial situation when looking at a separation. When dividing family assets, consider the income you each require for the rest of your lives. Remember there will be a lifestyle adjustment as you transition to life on your own. You may need to make sacrifices such as taking fewer vacations or downsizing your home.
It’s also important to revisit your estate plan, including beneficiary designations. This is something that can be easily overlooked, resulting in assets going to an ex-spouse unintentionally.
Finally, be sure to revisit your retirement plan. You may need to share some of your retirement savings with your former spouse. Or they may need to share with you. This is especially true if there’s a big asset and income gap between you and your ex. One of you may have been a stay-at-home parent, for example. Depending on the results of negotiations or litigation, you may decide to delay your retirement a year or two. Whenever you do retire, your advisor can help you best access your retirement income, given your changed status.
<On the slide> Average age at divorce has been rising. <End slide>
Typically, we move through stages of care as we age. The progression through these stages is different for everyone but, in time, for most of us, health needs and costs will grow. For many, this means we’ll eventually become dependent on someone. Without a spouse, singles may need to rely on friends, family members or a professional caregiver for help.
One of the challenges everyone typically faces as they age is making sound financial decisions. Our experience and knowledge may increase as we age, but our ability to process complex decisions tends to begin declining prior to retirement.
Single seniors don’t have a partner to bounce ideas off, so many may find themselves stressed about retirement and financial planning. And not everyone feels comfortable talking about money with their children and friends. But finding a trusted person to talk with can provide accountability with spending and help with making financial decisions. Maybe it’s a buddy system, where you can help keep each other in check. This is also when professionals, such as financial advisors, can also help.
<On the slide> A chart showing the 5 stages of dependence: (1) Independence (2) Interdependence (3) Supportive living (4) Crisis management (5) Dependence. Lifestyle and growth needs are likely to decrease with age. Protection and health needs are likely to increase with age. <End slide>
Aging isn’t the only time we may need help, and older people aren’t the only people who may be in need of care.
In 2022, almost 30% of Canadians had a disability that limited their daily life. At 31%, mental disorders are the most common disability.*
While the duration and severity and cost of disabilities vary widely, $640,000 is the average lifetime financial cost of having a disability in Canada.** What happens & who cares for you, if you’re a single person? If you have to pay for help, how will you manage that?
Needing care often has a big impact on family finances, both for the caregiver and for the person needing the care.
Since you don’t have the benefit of another income to fall back on, building up an emergency fund that can cover three to six months of expenses is very important for single people. You should lean towards more of a six-month cushion so unexpected expenses can be paid off without having to tap credit cards or raid retirement savings.
You may also wish to carefully consider insurance. Life insurance primarily serves as replacement income for those who depend on you. If you have no dependents, then it may not be necessary. But, if you have children that you’re financially responsible for, life insurance is extremely important. And an often-overlooked insurance need is disability insurance. It may be particularly important for singles as you don’t have access to a spouse’s income or care.
Having financial independence is important, but there are times you may need to depend on others. You may not think you need an estate plan as a single individual, but what if you become incapacitated? Whom do you trust to make health and financial decisions on your behalf? A health care proxy (also known as a durable medical power of attorney), an advance health care directive, and a durable power of attorney for financial and legal matters are critical documents to consider. If you’re single and have minor children, a will is the way to appoint a guardian who can care for them. Your will can also state your other wishes and property distribution. Make the time to prioritize a financial and estate plan and review it regularly. Share it with trusted family members and friends to provide peace of mind for both you and your loved ones.
Finally, consider saving and planning for retirement now. Many of us will be relying on Government benefits and our own personal savings in retirement. We may also be lucky enough to have employer sponsored savings as well. But given the “singles tax”, or the potential surprise of a “grey divorce” and the cost of living in today’s economy, getting time and compound growth on your side, and taking full advantage of any employer matching available, will help you close the gap.
A single retiree can certainly be successful, but the challenges they face are different from that of couples. For these reasons, seeking financial advice, and proactively planning is important when planning for retirement as a one-person household.
When your family is unique, your planning should be too. Regardless of your family structure, you can empower your family, and yourself, through prudent financial planning.
There are different pathways to parenthood, and the costs associated with family-building methods can vary widely. These costs can be significant, creating a unique financial burden for people impacted by infertility, for single persons wishing to be a parent, and for LGBTQ+ couples, including throuples, and other family units that have more than 2 parents. If the vision of your life includes becoming a parent, you’ll need to think through financial planning for adoption, surrogacy, or fertility treatments.
The cost of reproductive assistance and adoption can be staggering – running into the tens of thousands – and can impact other financial decisions. For example, home ownership, amounts that can be spent on other goals such as travel or going back to school, and the ability to retire at a specific time, to name a few. Like with any other high-ticket item, if your family will have costs associated with family-building, it’ll be very important to budget and plan for the financial aspects of this important life goal.
Legal planning is also crucial when building a modern family. Documents like confirmatory adoptions can be used to establish parental rights legally, in provinces where rights aren’t automatic. A confirmatory adoption, also known as a second-parent adoption, is a legal process that allows a non-biological, or non-gestational parent to obtain full legal parental rights for a child, often in the context of LGBTQ+ families. This process confirms and protects the parental rights of the non-biological or non-gestational parent, ensuring they have the same legal standing as the biological or gestational parent.
Ensuring you have legal recognition as a parent, means that all of the parents involved will have the same legal rights and responsibilities. For instance, something as simple as getting a report card from school for your child, or travelling with them, or making a medical decision, require that you’re a legal parent. Proper documentation and recognition of being a legal parent will also ensure that your children are protected. This is an important consideration when you’re building your family through adoption, IVF, surrogacy, or when there are more than two parents.
There are many modern families with more than two parents. Currently (as of July 2025) laws in Ontario and Saskatchewan allow children to have more than two legal parents, and a similar bill has been tabled in the Yukon. British Columbia allows more than two parents to be recognized in family situations involving assisted reproduction. Court rulings in that province, as well as in Newfoundland and Labrador, have ordered three people to be legally considered the parents of a child in specific cases.
The landscape continues to change quickly. A landmark April 25, 2025, legal decision in Quebec determined that some children have more than two parents, and the province must now update its laws to recognize that. They’ve been given 1 year to do so.
The case determined that, the children involved didn’t choose the nature of their multi-parent families. If they have three parents, that’s their reality and they can’t do anything to change it. And, when each of the individual parents choose to raise a child with two other people, the children in these families need to have the same protections as kids in any other family. For example, to be able to inherit from a parent who dies without a will. Or, if there’s a breakup, to still have access to, and financial support from, all the people who have parented them.
And there are of course many single parent families. In addition to potential family-building costs, the heads of these families also need to give guardianship careful thought should anything happen to them. It’s important to have the applicable conversation(s) with friends and family and to appoint a selected guardian in their will. Sole income earners in a family also have the added financial pressure of being the only one bringing in a paycheque. They need to consider not only who would take care of their child(ren) should they die while the child was a minor, but also how their child(ren) would be financially supported in the event of their death and what happens if they don’t die, but become ill, or injured, and unable to work. This can of course be of concern in any family unit, but it’s often of particular importance to protect the income stream when there’s only one person earning.
As with any life event, welcoming a child into your family is a great time to review your beneficiaries and Wills and other Estate Planning documents. This may be particularly important depending on the laws of intestacy in your province of residence, and your particular family structure.
Studies indicate that LGBTQ+ individuals tend to have lower retirement savings and lower rates of homeownership, relative to the general population. This can be influenced by factors such as wage gaps, workplace discrimination impacting income and career advancement, and sometimes a lack of family support or inheritance.
In their examination of relevant literature, a Kinitz et al. 2023** report illustrates that transgender people face prolific transphobia and bias in the labour market, resulting in harassment, exclusion, and poverty. The evidence underscores common challenges, including low income, elevated levels of poverty, and a substantial dependence on income support programs.
With this context, it's not surprising that saving for retirement is especially challenging for transgender individuals. The compounded effects of workplace discrimination, lower earnings, and economic instability creates substantial barriers to building long-term financial security.
For transgendered and non-binary persons, there are many additional unique costs and planning considerations to address.
Healthcare can be particularly expensive and challenging. Most Canadian provinces and territories cover the cost of some gender reassignment surgeries. However, not all provincial and territorial health insurance plans cover feminizing surgeries such as voice surgery and facial feminization. They also don't all cover masculinizing surgeries such as chest or body contouring.
There may also be additional family planning costs on the road to parenthood for transgendered people to consider, such as someone who plans on gender affirmation surgery, but also wants fertility preservation by saving sperm or eggs to try to conceive with in the future.
It’s important to carefully check group benefits plan formularies for coverage of gender-affirming care, including prescriptions for hormone treatments and other medications, and other necessary, treatments.
Costs for procedures and medications can be very high without adequate coverage, so it will be very important to budget and plan for financial aspects of this important life goal.
Credit building is fundamental for everyone, but in particular if you know you’re going to be facing large costs like the ones we’ve just spoken about, and plan to fund these costs through loans. What can happen to so many, particularly when income is constrained and living costs are high, is that bad borrowing or credit practices can lead to “bad credit” in the form of low credit scores. Everyone has a credit score, or a rating on their risk of repayment as a borrower. And it’s important for everyone to protect their credit score. That starts with avoiding dangerous habits such as late and missed payments or taking on more debt than you can actually handle. Credit and financial identity follows us our whole lives. For transgendered people, it’s also an easy place to be deadnamed.
Deadnaming is when someone uses a transgender person's old name instead of their new, chosen name. It's like calling someone by a name they've specifically asked you not to use, and it can be hurtful because it ignores their identity and the changes they've made in their life.
Changing one’s name legally is a complex process. It can be frustrating. Equifax and TransUnion, the two main credit bureaus in Canada, have made it possible for transgendered people to change their name on their credit history. Previously every time a credit report would be run (for credit cards, employers, landlords, etc.) an applicant would be deadnamed. By completing the process with each of the bureaus, you can help preserve your credit history as you transition to your new legal name.
Working with professionals such as lawyers and financial advisors who understand the challenges LGBTQ+ Canadians face can be an important step on the path to financial security.
In today’s world, a lot of people meet their romantic partner online. According to a 2025 Science Direct.com study, 21% of relationships that have formed since 2010 started online. And a 2025 UBC study found that 36% of couples who met online included a Canadian-born partner and a partner from another country, which is a significant portion of cross-border relationships.
Not only can the distance be challenging, cultural differences regarding finances may also arise, such as expectations regarding housing and financial support of, with, or from, extended families. Financial products, financial opportunities and your cultural and familial experiences with money may also be different.
On top of this, there are likely costs associated with the relationship, that need to be factored into your budget and planning. From travel expenses to visit each other, to potentially maintaining 2 houses in 2 countries, all the way to immigration fees should that be your ultimate goal, international relationships involve navigating unique financial, immigration, cultural, and religious complexities that require open communication, mutual respect, and professional guidance to ensure a healthy and sustainable partnership.
We’re constantly hearing about how it’s important to keep our accounts and financial information safe and secure, but how do you do that when your feelings are involved? Unscrupulous individuals will use dating or social networking sites to seek out potential victims and gain their trust. Once the perpetrator has gained their confidence, they will eventually ask for assistance in paying travel costs to meet them or for money to cover an emergency. To protect against romance scams, be skeptical of anyone you meet online who asks for money, especially if they pressure you to act quickly or keep the relationship a secret. Be wary of consistent sob stories or requests for money for travel or emergencies. And never send money or share financial details with someone you haven't met in person. These unlucky-in-love scenarios add up, with romance scams costing Canadians $50.3 million in 2023 (as reported by the Canadian Bankers Association*).
While technology and dating apps can introduce the risk of romance scams, which often target older adults looking for companionship, “grey dating” — or dating after age 60 — has become quite common. Starting a new chapter in love can be exciting, but when it comes to blending romance with finances it can be tricky. For aging adults, a conversation about finances should happen sooner rather than later because, as we age, there are more things to consider such as retirement expectations and goals, family obligations, inheritances etc.
Finding love at any age is thrilling. For older adults, dating and developing relationships can add an element of excitement, support and companionship during an important season of life. By tackling money topics thoughtfully, you can navigate the financial waters of your new relationship — regardless of your age — and ensure unexpected issues don’t rock the boat.
We can’t overstate how important it is to develop a financial roadmap that will allow you to enjoy the lifestyle you want and reach your financial goals. It’s never too early or too late to start a plan.
Some questions the modern family might run into include:
- Who’s responsible for paying for certain things, especially in blended families with children who have different parents?
- How do you handle owned property if you’re living common-law?
- Is your partner financially responsible to help you care for your aging parents?
- If you don’t have a partner, what happens to your children if something happens to you?
- Can parents afford to help their kids with a down payment on a house?
It takes work to get to a place of financial balance and happiness in any family. A financial roadmap can help you prioritize your financial goals and protect yourself along the way.
<On the slide> a list of 5 bullet points. (1) Prioritize your financial goals (2) Focus on the bigger picture (3) Worry less about money (4) Organize your finances (5) Save money to reach your goals <End slide>
Navigating financial planning as a Modern Family requires a thoughtful, holistic, and proactive approach. It’s about more than just money—it’s about protecting your rights, your relationships, and your future. There are many interconnected factors, including legal, social, and economic factors. By understanding the unique challenges and opportunities you face, you can take control of your financial well-being.
Having comprehensive estate and legal documents and developing a financial roadmap that includes specialized strategies for family planning and gender-affirming care costs, if applicable, on top of your regular budget and savings plan, can help provide peace of mind as you build a secure and fulfilling financial future for yourself and your family.
No matter the shape of your family structure, we encourage speaking with professionals regarding the legal and financial pitfalls that may exist and how they can best be addressed and managed for you and yours.
<On the slide> Thank you! The information provided is of a general nature and can not be construed as personal financial or legal advice. Neither Sun Life or its affiliates guarantees the accuracy or completeness of any such information. This information should not be acted on without obtaining counsel from your professional advisors, including a lawyer, notary, tax professional, or financial advisor (registered as Financial Security Advisors in Quebec) as may be applicable to your individual situation. Group Retirement Services are provided by Sun Life Assurance Company of Canada, a member of the Sun Life group of companies. <End slide>