An obstacle for simply gifting capital to children to purchase a home is the risk that a significant portion of the funds could be lost in the event of a marriage breakdown. If the property is considered a “matrimonial home” within the meaning of the Family Law Act, the entire property value is included in determining net family property.
There are a few ideas to protect funds to be invested in a home. One common strategy is having the child enter into an agreement with his/her common law partner which contractually excludes the home from net family property. Often these types of agreements are difficult to enter into, especially on the eve of nuptials.