Fair enrichment

07 October, 2021 • Par Dominique Lepine

What is fair enrichment?
In 1989, to ensure that one spouse did not enrich himself or herself at the expense of the other, Quebec created the family patrimony. The goal is to promote economic equality between spouses. However, this law only applies to married spouses. Is it to avoid it that the number of marriages is declining? It certainly does not explain the entire decrease, but it is probably part of the explanation. For my part, I believe that it is not up to the State to dictate the couple's economic model and that it should not interfere because, in my opinion, there is no single right answer.

Let's start by defining what enrichment is. According to Le Robert, it is the "act of increasing one's assets, of making a fortune." I would sum it up by saying that it is your net monetary value: your assets minus your debts. The definition of enrichment is the same for everyone. It gets complicated when we want to define equitable enrichment. Does it mean equivalent? Does it mean in proportion to your income? Is it the same thing if you are a blended family ? Is it the responsibility of each spouse without regard to the other?

Determining each person's contribution to the family budget is not easy. It is even more complex to determine what represents equitable enrichment within your couple. Once again, the right answer is not that of your brother, your coworker, your friend, etc. The right answer is the one that suits you according to your reality and your family values. To evaluate enrichment, we must define the gap between two values ​​over a given period. For example, my enrichment over the last year is the gap between my net worth on January 1 and that on December 31.

When calculating the wealth of a couple, what is our starting value? Our net worth at the beginning of our life together? Or when our first child arrives? Once the structure is established and the departure date is agreed, we must annually evaluate the net worth of each spouse in order to measure the respective wealth of each. It is by doing this calculation that we will see if our objectives are achieved.

So, annually , as we have already discussed, we must be aware of our family net worth, which will have increased or decreased. Once this variation is obtained, we must ensure that it is well distributed between the spouses. Let's take a simple example, a couple who determine that their goal is for each of them to obtain an annual enrichment equivalent in dollars. They therefore decide that all assets with a significant value, including the house, are in the name of both spouses. Every year, identical contributions are made to their RRSPs... Everything is divided 50/50. The goal is achieved and each has the same net worth, unless the employer of one of the spouses offers a retirement savings plan. Despite the good intention of the couple to have an equivalent enrichment, one of them therefore becomes richer more quickly than the other. Regularly evaluating their net worth will ensure that they can make adjustments. From now on, RRSPs can be taken out exclusively in the name of the spouse who does not have a pension fund.

When calculating net worth, make sure you don't forget anything: retirement funds, cash surrender value of insurance policies , RESPs, etc.

In my opinion, enrichment does not necessarily have to be equivalent to be fair. Enrichment is fair if both spouses understand and endorse the chosen distribution. Be careful, since the stakes are too high, we cannot avoid this discussion. It is the financial strength of the partners that is at stake. Do not let just one spouse manage all the aspects. Do not rely on the legislator to resolve this matter. You can't do it, is it really too complicated? Take the time to consult a financial planner. He will help you and guide you in defining what your definition of fair enrichment is.


This blog post is part of our special “Parenting Team” feature. To view all the content of this feature, which offers you tips and advice on how to better work as a team as parents and effectively share the mental load, check out this article !