New partner, new home and a down payment … WARNING!

Many people mistakenly believe that they will be able to easily recover their down payment when they separate from their partner. Unfortunately, things are not so simple.

Indeed, section 1015 of the Civil Code of Quebec establishes a presumption that the shares of the co-owners are equal. This presumption will be valid in the absence of any indication to the contrary in the deed of purchase of the property. Importantly, the mere fact that one of the co-owners initially invested more than the other in the acquisition of the house does not rebut the presumption. Of course, you can always try to reverse that presumption. If you fail to rebut the presumption, a court may decide that you have “donated” half of your down payment to your partner.

You should therefore make it clear in the deed of purchase that your down payment will be fully refunded to you in case of separation or resale.