What is considered family property in BC?

Family property includes assets acquired during the marriage or common-law relationship, such as real estate, vehicles, bank accounts, pensions, RRSPs, investments, business interests or shares, and the increase in value of any excluded property. Family property is typically divided equally between spouses.

What is excluded property in BC separation?

Excluded property includes assets owned before the relationship began, inheritances or gifts received by one spouse during the relationship, and damages or settlements awarded for personal injury. However, any increase in the value of excluded property during the relationship is considered family property and subject to division.

How are debts handled during separation in BC?

Debts incurred during the relationship, such as mortgages, loans, or credit card balances, are generally shared equally, regardless of whose name they are under. Both parties are required to provide complete financial disclosure of all assets and liabilities.

What Happens to Property and Assets During Separation in BC?

FAQs

What Happens to My Property and Assets During a Separation in BC?

During a separation in British Columbia, the division of property and assets is governed by the Family Law Act (FLA). The law provides clear guidelines to ensure that property is divided fairly, with a focus on distinguishing between family property and excluded property. The goal is to ensure equitable outcomes for both parties.

Key Steps in Dividing Property and Assets During a Separation

1. Identify and Value Family Property

Family property includes:

Assets acquired during the marriage or common-law relationship.
Real estate, vehicles, bank accounts, pensions, RRSPs, and investments.
Business interests or shares.
The increase in value of any excluded property.

Family property is typically divided equally between spouses.

2. Distinguish Excluded Property

Excluded property is not subject to division and includes:

Assets owned before the relationship began.
Inheritances or gifts received by one spouse during the relationship.
Damages or settlements awarded for personal injury.

However, any increase in the value of excluded property during the relationship is considered family property and subject to division.

3. Resolve Debts

Debts incurred during the relationship, such as mortgages, loans, or credit card balances, are generally shared equally, regardless of whose name they are under.

4. Financial Disclosure

Both parties are required to provide complete financial disclosure, including documentation of assets, liabilities, and income. Failure to disclose assets can lead to penalties or reopening of property division agreements.

Options for Dividing Property During Separation

Option	Description
Separation Agreement	A separation agreement allows couples to divide property and assets amicably without court involvement. It should be formalized in writing and signed by both parties to ensure it is legally binding.
Mediation or Arbitration	Couples who cannot agree on property division can use mediation or arbitration to resolve disputes in a private and cost-effective manner.
Court Orders	If negotiations fail, the court can issue orders to divide property and assets based on the FLA.

Special Considerations for Specific Assets

Real Estate

The family home is typically considered family property, even if owned by one spouse before the marriage. Both parties may have a claim to its value increase.
Options include selling the home and dividing the proceeds or one spouse buying out the other’s share.

Business Interests

Businesses are often valued and divided as part of the marital estate. To protect a business, the owner may negotiate to retain full ownership by compensating the other spouse with other assets.

Pensions and Retirement Accounts

These are divided based on their value accrued during the relationship. Options include equal division or other negotiated settlements.

Bank Accounts and Investments

Joint accounts are typically split equally, while individual accounts are divided based on whether they qualify as family or excluded property.

What to Avoid During Separation

Hiding Assets

Concealing property or funds can lead to penalties, reopening of agreements, and loss of credibility in court.

Making Major Financial Changes

Avoid transferring, selling, or depleting assets without mutual consent, as this may be seen as bad faith.

Example in a Vancouver Context

A couple in Vancouver separates after 10 years of marriage. Their family property includes:

A jointly owned home with $500,000 in equity.
A business founded during the marriage worth $1 million.
RRSPs valued at $200,000.

They also have debts, including a $100,000 mortgage and $50,000 in personal loans. Through mediation, they agree:

To sell the family home and split the equity.
One spouse retains the business, compensating the other with $250,000 in cash.
RRSPs and debts are divided equally.

Seek Legal Assistance

If you’re navigating property and asset division during separation, Mills Family Law, experienced Vancouver family lawyers, can provide guidance. We can help you negotiate fair agreements, protect excluded property, and resolve disputes efficiently. Call us at 778-945-3003 or fill out our web form to get started today.

Related FAQs

For more details, refer to the Family Law Act of BC or consult a family lawyer for personalized advice.

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