In a divorce case or a case in which the parties are unmarried but have lived together for two or more years, people in British Columbia can expect to go through a property division. Under the rules, property is categorized as family property or excluded property.

Family property is subject to division under the law. Unless the parties have an agreement otherwise, all family property will be divided equally between them. Family property includes the shared home, bank accounts, RRSPs, investments, insurance policies, pensions, business interests and any increased value of excluded property that occurred during the relationship. Courts will sometimes divide family property unequally between the parties if the court determines that doing otherwise would be significantly unfair. Practically speaking, however, courts divide family property equally in most cases.

Excluded property includes the property one person owned prior to the start of the relationship. It also includes any gifts or inheritances given to one person but not to the other during the relationship. Finally, excluded property also includes certain types of damage awards, trust property and insurance proceeds.

When people are separating or divorcing, they may wish to try to come to an agreement with their former spouse or unmarried partner regarding the division of their property. Property division can be difficult to figure out, however. It is often difficult for people to be able to reach an agreement regarding a property division. In those cases, people may benefit by speaking with a lawyer who practices in the area of divorce and family law. A lawyer may be able to help locate hidden assets, devise a proposed property division agreement and advocate for his or her client’s rights in court at contested hearings.

Source: Justice BC, “What happens to family property when spouses separate?“, November 20, 2014

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

When British Columbia spouses separate, their property and debt is divided according to the Family Law Act. Generally, each spouse receives half of the family property and half of the family debt. Family property includes such things as bank accounts, business interests and pensions. Some property is excluded, although it does include increases in the value of the excluded property that occurred during the relationship.

Excluded property is property that a spouse owned at the beginning of the relationship. Examples include inheritances, gifts and court awards. Excluded property belongs to the spouse who brought the property into the relationship, and it isn’t divided. Debt is handled in a similar way, meaning that family debt is usually split 50-50 upon dissolution of a relationship, but individual debt is not.

A spouse is defined as one of the partners in a marriage or a marriage-like relationship existing for two or more years. When spouses divorce or separate, they have two years to ask a court for a division of property and debt. Although courts usually divide property and debt evenly, they can elect a different methodology that is perceived to be more fair and equitable. Spouses can also create their own property division agreement.

The division of property and debt can become complicated, especially in cases where the value of the assets has grown during the marriage or where one or both spouses own significant business interests. While courts usually divide property and debt equally, a couple is free to devise their own plan or to develop one during mediation. A spouse who needs assistance with dividing property and debt may want to use the services of a lawyer who has experience in family law.

Source: The Canadian Bar Association, British Columbia Branch, “Dividing Property and Debts “, August 28, 2014

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370