What is considered family property in BC?

Family property includes all assets acquired during the relationship, such as the family home, real estate, bank accounts, savings, investments, pensions, retirement savings (RRSPs), business interests, vehicles, and personal property. It also includes debt incurred during the relationship like credit cards, mortgages, and loans.

What is excluded property in BC?

Excluded property includes assets owned before the relationship began, inheritances or gifts received by one spouse during the relationship (if kept separate), damage awards, personal injury settlements, insurance proceeds meant for one spouse, property purchased with excluded property, and certain trust property.

How is the family home treated in BC property division?

The family home is treated differently from other assets. Even if one spouse owned it before the relationship, it is considered family property and subject to division if it was the couple's primary residence.

What happens to the increase in value of excluded property?

While the original value of excluded property remains with the owner, any increase in its value during the relationship is considered family property and may be subject to division.

What Is Family Property vs. Excluded Property in BC?

FAQs

What Counts as Family Property, and What Is Excluded from Division?

In British Columbia, property division in a divorce is governed by the Family Law Act (FLA). The law distinguishes between family property, which is subject to division, and excluded property, which typically remains with the original owner. This distinction is crucial for ensuring a fair and equitable division of assets.

Family Property

Family property generally includes all assets acquired by either spouse during the relationship, regardless of whose name they are in.

Examples of Family Property

The family home (regardless of when it was purchased or who owns it)
Other real estate purchased during the relationship
Bank accounts, savings, and investments
Pensions and retirement savings (e.g., RRSPs)
Business interests acquired during the relationship
Vehicles and personal property purchased during the relationship
Debt incurred during the relationship (e.g., credit cards, mortgages, loans)

Excluded Property

Excluded property refers to certain assets that are not subject to division under the FLA, provided they were not used for family purposes or commingled.

Examples of Excluded Property

Assets owned by a spouse before the relationship began
Inheritances or gifts received by one spouse during the relationship (if kept separate)
Damage awards, personal injury settlements, or insurance proceeds meant for one spouse
Property purchased with excluded property (e.g., using an inheritance to buy a condo)
Certain trust property

Important Considerations

Growth in Value of Excluded Property

While the original value of excluded property remains with the owner, any increase in its value during the relationship is considered family property.
Example: If one spouse owns a rental property before marriage, the property itself is excluded, but any increase in its value during the relationship may be shared.

Family Home Exception

The family home is treated differently. Even if one spouse owned it before the relationship, it is considered family property and subject to division if it was the couple’s primary residence.

Commingling of Assets

If excluded property is mixed with family property (e.g., using an inheritance to renovate the family home), it may lose its excluded status.

Example in a Vancouver Context

A couple divorcing in Vancouver owns a home in Kitsilano, purchased during the marriage, and one spouse has a Whistler condo bought before the marriage. The Kitsilano home is family property and will be divided equally, while the original value of the Whistler condo is excluded property. However, any appreciation in the condo’s value during the marriage may be subject to division.

Seek Legal Assistance

Understanding what counts as family property versus excluded property can significantly impact your financial settlement. If you’re facing property division, Mills Family Law, trusted Vancouver family lawyers, can provide tailored legal advice to protect your interests. 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.

FAQ