One of the most significant concerns in a divorce or separation is the division of property. In British Columbia, the Family Law Act sets out the rules for dividing assets and debts when a marriage or common-law relationship ends. This general guide explains what property is divided, how courts determine fair division, and what exceptions may apply.

What Property Is Divided in a BC Divorce?

In BC, property is categorized into two main types:

• Family Property (Section 84 Family Law Act) – Assets acquired during the relationship, including:
• Real estate (family home, rental properties)
• Bank accounts, investments, and pensions
• Vehicles and personal property
• Business interests
• Excluded Property (Section 85 of the Family Law Act)– Assets one spouse owned before the relationship, including:
• Gifts and inheritances received during the relationship
• Certain legal settlements
• Pre-marriage property value (only the increase in value during the relationship is shared)

How Is Property Divided?

The general rule is equal division of family property and debt, but exceptions may apply. Courts may order an unequal division if an equal split would be unfair due to factors such as:

• A short marriage or relationship
• One spouse significantly contributing to the other’s wealth
• Misconduct that affects finances (e.g., reckless spending or hiding assets)

What Happens to the Family Home?

Even if only one spouse’s name is on the title, the family home is considered family property and is typically subject to equal division. Options include:

• Selling the home and splitting the proceeds
• One spouse buying out the other’s share
• Deferred sale if children are involved

What About Debt?

Just like assets, family debt is shared. This includes:

• Mortgages
• Credit card debt
• Lines of credit and loans

Can Property Division Be Changed?

Yes, property division agreements can be modified if both parties agree or if a court finds that an agreement was unfair due to:

• Non-disclosure of assets
• Coercion or pressure at the time of signing
• Significant changes in financial circumstances

However, the party claiming unequal division bears the burden of showing that it would be inequitable to equally divide the property in question. See Section 95 of the Family Law Act.

Do You Need a Lawyer for Property Division?

While some couples reach an agreement independently, legal advice is always strongly recommended and can help ensure a fair division of assets and protection of your rights. A lawyer can assist with:

• Negotiating a separation agreement
• Protecting excluded property
• Resolving disputes in court if necessary

When is family property valued?

While some couples reach an agreement independently, legal advice is always strongly recommended and can help ensure a fair division of assets and protection of your rights. A lawyer can assist with:

Conclusion

Property division in a BC divorce can be complex, and every case is unique. Understanding the law and seeking legal guidance can help ensure a fair outcome.

This article provides general legal information and does not constitute legal advice. For legal assistance, contact Lawfellow Legal Services today.