What happens if spouses can't agree on property division?

If spouses cannot agree, they can try mediation or arbitration as alternatives to court. If these methods fail, either party can apply to the BC Supreme Court, which will make decisions about property division based on the Family Law Act.

How does the court divide property if we can't agree?

The court divides family property and family debt equally unless an equal division would be significantly unfair. Factors considered include the length of the relationship, each spouse's contribution to family property, and post-divorce financial needs and earning potential.

What are the consequences of not reaching an agreement?

Going to court is often lengthy and expensive compared to reaching a private agreement. You lose control over the outcome as a judge will decide how to divide property, which may result in outcomes neither party prefers. It can also increase emotional and financial stress.

What is required for financial disclosure in property division?

Both parties must provide full financial disclosure of all assets and debts. Failure to disclose can result in penalties, adjustments to property division, or court sanctions.

What If We Can’t Agree on Property Division in a Divorce?

FAQs

What Happens if We Cannot Agree on How to Divide Our Property in a Divorce?

If you and your spouse cannot agree on how to divide your property during a divorce in British Columbia, the court can step in to make the decision for you. The division of property is governed by the Family Law Act (FLA), which emphasizes a fair, equitable process that often involves dividing family property and debts equally unless there are significant reasons to deviate.

Key Steps if Agreement Cannot Be Reached

Mediation or Arbitration

Before going to court, couples are encouraged to try mediation or arbitration as alternatives to resolve disputes.
Mediation: A neutral third party helps both sides reach a mutually acceptable agreement.
Arbitration: A private arbitrator makes binding decisions about property division.

Court Application

If no agreement is reached through negotiation, mediation, or arbitration, either party can apply to the BC Supreme Court for a ruling on property division.
The court will review all assets, debts, and financial disclosures to decide on an equitable division.

Legal Obligations for Disclosure

Both parties must provide full financial disclosure of all assets and debts. Failure to disclose can result in penalties, adjustments to property division, or court sanctions.

Court Decision on Division

The court divides family property and family debt equally unless an equal division would be significantly unfair. Factors the court may consider include:
Length of the relationship
Each spouse’s contribution to the family property
Post-divorce financial needs and earning potential

Consequences of Failing to Agree

Cost and Time: Court proceedings are often lengthy and expensive compared to reaching a private agreement.
Loss of Control: A judge will decide how to divide property, which may result in outcomes neither party prefers.
Stress: Litigation can increase emotional and financial stress, especially when significant assets or debts are involved.

Example in a Vancouver Context

A divorcing couple in Vancouver cannot agree on dividing their shared family home, a rental property, and a business. After unsuccessful mediation, they apply to the BC Supreme Court. The court reviews their financial situation, determines that the family home and rental property will be divided equally, and assigns a larger share of the business to the spouse who actively manages it, given their greater financial need post-divorce.

Seek Legal Assistance

If you and your spouse cannot agree on property division, a Vancouver family lawyer can help you explore your options and navigate the legal process. Mills Family Law provides advice and representation to protect your interests. Call us at 778-945-3003 or fill out our web form to get started today.

Related FAQs

For more on legal procedures, refer to the Family Law Act of BC.

FAQ