On June 30, 2025, a major reform of family law came into effect in Quebec with the adoption of Bill 56, establishing the parental union regime. This reform modernizes family law and addresses a well-established social reality: unmarried parents raising children together without a clear legal framework.
Although rooted in family law, this reform has real consequences for Quebec entrepreneurs living in common-law relationships and raising children.
As a law firm specializing in business and corporate law, we primarily support entrepreneurs in managing their commercial projects. However, legal support must also consider the personal, family, and estate dimensions of our clients' lives.
In this context, it is important to understand the practical implications of this new parental regime for entrepreneurs and their families.
A New Legal Status
First, a fundamental question arises: What is a parental union?
The parental union regime aims to provide a legal framework for common-law partners who become parents of the same child, without being married, granting them a new legal status. From the birth or adoption of a child after June 29, 2025, a parental union is automatically created, unless otherwise stipulated by a notarized act.
This regime offers legal protection to common-law partners with children by establishing a parental union estate, distinct from each parent's personal estate. It includes, notably:
- The family residence or rights granting its use;
- Furniture furnishing or serving household use;
- Motor vehicles used by the family.
Assets received through inheritance or donation, as well as registered funds (RRSPs, pensions, etc.), are excluded. However, to exclude other assets or opt out of the union, a notarized act is required.
Implications for Entrepreneurs: Real Estate Law and Asset Management
This reform raises significant issues for entrepreneurs in terms of estate planning, succession, and organizational strategy. Key implications include:
1- Family Residence
The family residence receives protection similar to that of married couples. Even if registered under one parent's name, it may be subject to usage or sharing rights upon dissolution of the parental union.
In case of separation, the court may temporarily grant usage rights to the parent with custody of the children, even if they are not the owner.
For entrepreneurs who often own their personal residence through a trust or corporation, this calls for strategic planning regarding real estate and property acquisition.
2- Asset Transfer and Family Businesses
The reform affects asset management and transfer, especially within family businesses. Entrepreneurs holding assets via a company or trust may see these assets classified as family property upon separation.
It becomes essential to identify mixed-use assets and anticipate their fate in case of a breakup.
The automatic creation of a parental union estate may also alter the value or nature of assets transferred through succession. Estate planning must be revised to protect heirs, ensure business continuity, and reduce the risk of disputes.
3- Risk of Unplanned Asset Sharing
Upon dissolution of the union (separation, death, etc.), assets included in the parental estate will be equally divided unless expressly excluded by notarized act. An entrepreneur investing personal funds into a family residence or vehicle from business income could lose a significant portion without proper planning.
4- Claim for Compensatory Allowance
A partner may claim a compensatory allowance if they were financially disadvantaged for the benefit of the other—common in entrepreneurial families where one partner invests in the business at the expense of personal income.
The Central Role of the Notary
As mentioned, Bill 56 introduces new notarized acts:
- Renunciation of the parental union regime;
- Exclusion of specific assets from the parental estate;
- Customized agreements governing the effects of the parental union.
These acts must be notarized to be valid, highlighting the need for preventive legal guidance. The notary plays a strategic role in ensuring proper family and business planning and avoiding potential conflicts.
Conclusion
Bill 56 marks a significant legal advancement. However, it reminds us that for entrepreneurs, personal and professional spheres are deeply intertwined. Though rooted in family law, this new parental union regime raises issues that only appropriate legal support can anticipate and manage effectively.
Our firm supports Quebec entrepreneurs in achieving their professional ambitions while recognizing that success also depends on legal stability in personal life. This new regime underscores the importance of coherent planning at the intersection of family and business. We remain at the forefront to provide informed advice to our clients.
For any questions, feel free to contact us.