When divorcing or separating in British Columbia, it's important to understand how family assets are divided. First and foremost, the couple must have been together in a marriage-like relationship for at least 2 years. The family assets are then typically divided equally between spouses, regardless of whose name the assets are in.

What is Family Property?

Family property is considered to be anything that you or your partner own separately or together, right up until the date you separate or divorce, regardless of whose name the family property is in.

Examples of family property:

• Family home
• RRSPs
• Bank accounts
• Investments
• Pensions
• Insurance policies
• An interest in a business

Examples of assets excluded from family property:

• Property either spouse owned before the relationship started
• Gifts and inheritances given to one spouse during the relationship
• Certain damage awards, insurance proceeds and trust property

Another consideration is any pets the couple has which may be considered family property or may be excluded. Couples can determine whether they jointly own or share possession of the pet, but a court order can be made to decide which partner has sole custody or possession if the couple cannot come to an agreement.

How will Family Property be divided?

Family Property is typically divided 50/50, or equally, if:

• the couple lives in a marriage-like relationship for a minimum of 2 years
• there are no cohabitation agreements or other agreements
• the equal division would not be fair to one partner which would depend on many factors

Couples can create their own agreements on how they will divide their property or debt unequally.

What about family debt?

Unless the couple has an agreement before separating or divorcing, all family debts are shared equally. Family debts are all debts that either you or your spouse incurred during your relationship. Any expenses taken on after separation to maintain family property are also included, regardless of whose name the family debt is in.

Examples of family debt:

• Mortgages
• Loans from family members
• Lines of credit
• Credit cards
• Overdrafts
• Income tax
• Repair costs

Will family debts always be divided equally?

Unless it is significantly unfair to divide family debts equally, a court will rule the family debts must be divided equally.

The following would be considered when deciding if the debt should be equally split:

• How was the family debt incurred?
• Are the debts worth more than the family property and the ability of each spouse to pay a share of the debts?
• Whether one spouse, after separation caused a decrease or increase in the value of family property

If you have a credit card or loan in your name only, you will be solely responsible for those payments, regardless of your agreement with your partner.

The division of family property and debts can be extremely complex, even with pre-existing agreements the couple has. It's essential to seek legal advice to ensure a fair and equitable division of assets based on individual circumstances. Our well-versed family lawyers at De Novo Law can guide you through the process, and offer mediation and negotiation to reach an amicable agreement. Each case is unique and our lawyers will help you consider all factors before making any decisions regarding the division of family assets.

If you’d like more information, please contact us by email at info@denovolawyers.ca or give us a call at 778-761-1719.

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