Joint Venture and Trust Claims in Ontario
At Stephen Durbin and Associates, we understand that the end of a relationship can raise complex questions about property and financial contributions, especially for unmarried couples. In Ontario, joint venture and trust claims provide a way for individuals to seek fair compensation when one partner has benefited unfairly from the other’s efforts during the relationship. These claims often arise in cases involving common-law spouses where there is no automatic right to equal property division.
Our experienced family law team is dedicated to helping clients navigate these issues, ensuring your contributions (whether financial, domestic, or otherwise) are properly recognized. If you’re facing a separation and believe you may have a claim, contact us today to discuss your options, as we advise clients across Ontario on constructive trust claims, joint family ventures, and complex family property disputes.
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What are Joint Venture and Trust Claims?
Joint venture and trust claims are legal tools used in family law to address situations where one person in a relationship has been unjustly enriched at the expense of the other. Unlike married couples, who benefit from statutory property equalization under the Family Law Act, unmarried or common-law partners must rely on principles of equity to claim a share of assets accumulated during the relationship. These claims typically involve proving that your contributions helped build wealth or preserve property that your former partner now holds disproportionately.
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Trust claims, such as constructive trusts, can result in a court declaring that you have an interest in specific property. Joint family ventures, on the other hand, recognize the relationship as a collaborative partnership where both parties worked together toward shared goals. These concepts are particularly relevant in cases involving high-value assets, business interests, or complex income streams.A knowledgeable Ontario family lawyer can assess which type of claim best fits your situation.
What is Unjust Enrichment?
Unjust enrichment is the foundation of most joint venture and trust claims. It occurs when one party receives a benefit, the other suffers a corresponding loss, and there is no legal reason (like a contract or gift) for the benefit to be retained. For example, if you contributed to your partner’s business by managing household responsibilities, allowing them to focus on work, you might argue that they were enriched by your efforts without fair compensation.
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To succeed in an unjust enrichment claim, you need to demonstrate:
- A clear benefit to your former partner.
- A loss or deprivation on your part.
- No valid reason for the imbalance.
Courts in Ontario carefully examine the entire relationship to determine if equity demands a remedy. Documenting financial contributions, domestic labour, and shared intentions is essential when building a strong unjust enrichment case.
How is a Joint Family Venture Determined?
A joint family venture exists when a couple’s relationship functions like a partnership, with both contributing to the accumulation of wealth in ways that go beyond simple cohabitation. This is a factual assessment, not automatic, and courts consider several key factors:
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- Mutual Effort: Did both parties work collaboratively toward common goals, such as building a home, raising children, or growing a business?
- Economic Integration: Were finances intertwined, such as shared bank accounts, joint investments, or pooled resources for family expenses?
- Actual Intent: Did the parties express or demonstrate an intention to treat their relationship as a shared economic unit, perhaps through long-term planning or holding themselves out as partners?
- Priority of the Family: Did one or both parties make sacrifices, like forgoing career opportunities, to prioritize family needs?
If a joint family venture is established, the court may award a share of the accumulated assets proportionate to your contributions, rather than requiring a direct link to specific property.
What Remedies Are Available?
Remedies for successful joint venture and trust claims can be monetary or proprietary. A monetary award compensates you for the value of your contributions, calculated based on your share of the wealth created during the venture. In contrast, a constructive trust grants you an ownership interest in specific assets, such as a home or business, if there is a strong connection between your efforts and the property’s value or preservation.
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The choice of remedy depends on the circumstances: monetary awards are common when a cash payout is sufficient, while trusts are used when money alone cannot adequately address the injustice. Our lawyers will help evaluate which approach best suits your situation, providing strategic guidance to help clients secure fair compensation or property rights when unjust enrichment has occurred.
Key Cases in Joint Venture and Trust Claims
Ontario and Supreme Court of Canada decisions have shaped the law in this area, providing guidance on how claims are assessed. Here are a few important examples:
- Kerr v. Baranow, 2011 SCC 10: This landmark Supreme Court case established the modern framework for unjust enrichment in domestic relationships. It introduced the joint family venture concept, emphasizing that remedies should reflect proportionate contributions to shared wealth, not just direct financial inputs. The decision highlighted factors like mutual effort and economic integration, making it easier for claimants to seek equity without detailed accounting of every contribution.
- Mullin v. Sherlock, 2025 ONCA 510): In this recent Ontario Court of Appeal ruling, the court upheld a finding of unjust enrichment in a joint family venture where one spouse sacrificed career opportunities to support the other’s business. It reinforced that domestic contributions, such as childcare and household management, can justify a significant share of assets, even in complex income scenarios.
- Davidson v. Davidson, 2022 ONSC 4375: This case explored both monetary and proprietary remedies, stressing the need for a clear link between contributions and property for a constructive trust. The court awarded a trust interest in family assets, illustrating how non-financial efforts in a long-term relationship can lead to ownership rights.
- Martin v. Sansome, 2014 ONCA 14: The Ontario Court of Appeal clarified the distinction between monetary awards and constructive trusts, noting that trusts are appropriate when contributions directly preserved or enhanced specific property. This decision helps guide when a court might impose a trust to prevent unjust retention of benefits.
These cases demonstrate the evolving nature of the law and the importance of strong evidence in proving your claim.
When Should You Consider a Joint Venture or Trust Claim?
If you’ve been in a common-law relationship and feel your contributions (financial, emotional, or practical) have not been fairly recognized upon separation, it may be time to explore a claim. This is especially relevant in situations involving high-value assets like real estate, investments, or family businesses. Early legal advice is crucial, as gathering evidence of contributions and intent can strengthen your position.
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Delays can complicate matters, so consult a family law professional if you’re dealing with unequal asset division or disputes over property titled in one partner’s name, as prompt legal advice can significantly improve the outcome of a trust or unjust enrichment claim.
Find a Lawyer for Joint Venture and Trust Claims in Ontario
At Stephen Durbin and Associates, our team has extensive experience handling joint venture and trust claims in family law matters. We provide compassionate, strategic guidance to help you achieve a fair outcome, whether through negotiation or court proceedings. Don’t navigate these complex issues alone, reach out to us and let us advocate for your rights.
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