How Is High-Value Property Divided Under BC’s Family Law Act?

How is high-value property divided in a divorce under the BC Family Law Act?

In BC, high-value property division during a divorce follows principles outlined in the Family Law Act (FLA), emphasizing fair and equitable distribution. High-value or complex assets—such as real estate, businesses, investments, and pensions—require precise valuation and may involve financial experts to ensure accuracy.

Key Points for Dividing High-Value Property in BC

• Equal Division Principle. The FLA generally favors a 50/50 split of family property acquired during the marriage, including high-value assets, unless agreed otherwise.
• Excluded Property. Property owned before the relationship, inheritances, and gifts to one spouse typically remain excluded. Only the increase in value during the marriage is subject to division.
• Complex Valuation Process. High-value assets, like businesses and pensions, require specialized valuations by financial experts or appraisers to determine their fair market value.
• Role of Agreements. Marriage and cohabitation agreements can predetermine the division of high-value assets, often simplifying the process. However, they must comply with the FLA to be enforceable.
• Discretion for Unequal Division. In cases of significant unfairness, the court may decide on an unequal division, but this is rare and case-specific.

Step-by-Step Process for High-Value Asset Division

1. Identify Family vs. Excluded Property. Determine which assets are family property (to be divided) and which are excluded under the FLA.
2. Valuation of Assets. Obtain professional valuations, particularly for complex assets like businesses, investment portfolios, and pensions.
3. Consider Equalization Payments. If physical division is not practical, an equalization payment may be used to offset the value.
4. Explore Mediation and Collaborative Law. For high-net-worth divorces, alternative dispute resolution (ADR) options, like mediation, arbitration, or med-arb, can provide a private and customized approach to asset division.

Special Considerations for High-Value Divorces in BC

• Business Ownership. Business interests may be divided, though maintaining operational stability often influences the approach.
• Real Estate Holdings. Multiple properties or significant real estate investments are usually divided based on valuation rather than physical division.
• Tax Implications. High-value property division often has substantial tax implications, so consulting a tax lawyer and a financial advisor is essential to minimize tax liabilities.

Seek Legal Assistance

Navigating high-value property division in a BC divorce can be complex. If you have questions about dividing high-value assets, Mills Family Law, a trusted Vancouver family lawyer, can help you determine the best approach for protecting your interests. Call us at 778-945-3003 or fill out our web form to get started today.

Related FAQs

• How are complex assets like businesses valued in a divorce?
• Do I have to sell my home in property division?

Relevant Legislation

Refer to the BC Family Law Act, Part 5: Property Division for more information on family property and excluded property classifications.