A new survey by H&R Block Canada suggests that financial considerations are shaping why Canadians stay in relationships.
According to the data, nearly 73 per cent of Canadians believe people remain in marriages or common-law relationships for financial reasons. At the same time, 80 per cent say life is more affordable as a couple.
Money also appears to influence commitment, with 27 per cent of the survey’s respondents saying they would consider leaving their partner if they won the lottery.
Meanwhile, nearly one in four Canadians say they like the idea of a “five-year renewable relationship contract” instead of a lifelong marriage.
Children and finances keep couples together
The survey found 83 per cent of Canadians believe couples often stay together for the sake of their children, while 40 per cent say marriage is mainly about practical considerations when kids are involved.
There are perceived financial advantages of being in a couple. More than half of Canadians believe married or common-law couples receive more tax advantages than single people. In contrast, 63 per cent say single Canadians should get more tax breaks, since they don’t share living expenses.
“In Canada, your marital or common-law status and the number of children you have can significantly impact the tax credits, benefits and deductions that you can claim,” said Yannick Lemay, a tax expert at H&R Block Canada.
The survey suggests Canadians are divided on how well they understand the tax implications of their relationship status. About 46 per cent say they have a strong understanding of how being in a relationship affects their taxes, while 42 per cent say they do not.
The report highlights several ways relationship status can affect finances:
- Couples may be able to transfer certain tax credits between themselves
- Higher earners can contribute to a spouse’s RRSP to split income
- Benefits like the Canada Child Benefit and Canada Workers Benefit are calculated based on household income
Lemay notes there can be benefits to filing as a single person. Single Canadians receive full individual credits rather than splitting them.
“While there aren’t any specific tax credits or benefits for single Canadians, it does mean you could receive the full amounts for a number of tax credits and benefits rather than splitting amounts with a partner,” said Lemay. “It also means that, for benefits and credits that are based on household income, you often receive a higher amount given it’s evaluated based on one rather than two incomes.”
