Division of Assets in British Columbia
Separating from a partner can be an emotionally and financially overwhelming process. The division of family property and debt is often one of the most complex aspects of a divorce or separation. Understanding your legal rights and ensuring that assets and debts are fairly distributed can make a significant difference in securing your financial future.
Our experienced family lawyers in BC will help you determine:
- Who gets the family home?
- What happens to joint debts and mortgages?
- How is a business or pension divided?
- What assets are considered “excluded property” under BC law?
- How can you protect your financial interests?
What is Family Property and Debt Division in BC?
Under BC’s Family Law Act, family property and debt are divided equitably when a couple separates. This applies to both married spouses and common-law partners who have lived together for at least two years.
What is Family Property?
Any property acquired during the relationship, including:
- Real estate
- Pensions
- Bank accounts
- RRSPs
- Vehicles
- Insurance policies
- Businesses and investments.
Companion animals are also considered family property under British Columbia’s Family Law.
What is Family Debt?
In British Columbia, family debt includes any debts incurred by either spouse during the relationship, regardless of whose name is on the debt. It also includes debts taken on after separation to maintain family property. Common examples include:
- Mortgages
- Credit card balances
- Car loans
- Loans from family members
- Income tax
- Repair costs
- Lines of credit acquired during the relationship.
Excluded Property
Excluded property refers to assets that are not considered family property and generally do not get divided upon separation. In British Columbia, excluded property includes:
- Inheritances received by one spouse. Often this includes a house bought by one spouse before the relationship.
- Gifts from third parties given to only one spouse during the relationship
- Certain insurance settlements or damage awards, such as certain personal injury compensation.
What if the property increases in value while you are together?
Any increase in the value of excluded property during the relationship may be considered family property and subject to division.
How Are Assets and Debts Divided in a Divorce?
One of the most common concerns during a separation is “Who gets what?” In British Columbia, the law says that all the family property and family debt have to be divided equally between the two spouses, unless you and your partner make a different agreement.
If you and your spouse have made an agreement about property and debt, you’ll divide everything the way you agreed to in the separation agreement.
However, this can be adjusted in cases where an unequal division would be unfair due to factors such as financial hardship, misconduct, or significant separate contributions.
Common Challenges in Property and Debt Division
Even when both parties agree to separate, property division can lead to disputes. Some of the most common challenges include:
- Disputes Over Property Ownership – One spouse may claim exclusive rights to a home, investment, or business.
- Hidden Assets & Financial Disclosure Issues – A spouse may attempt to hide or undervalue assets to reduce their share.
- Debt Responsibility Conflicts – Determining who is responsible for joint loans, credit cards, and mortgages.
- Unequal Contributions to Property – One partner may have contributed significantly more financially to an asset.
- Common-Law Property Division Confusion – Unlike married couples, common-law spouses may face additional legal hurdles in proving shared ownership of assets.
If you are facing any of these challenges, our Port Moody divorce and separation lawyers can help you build a strong legal strategy to ensure fairness.
Do You Need a Lawyer for Property & Debt Division in BC?
Navigating property and debt division in British Columbia requires expertise in BC’s Family Law Act and local legal procedures. With over 20 years of experience, we’ve helped clients in Port Moody, the Tri-Cities, and the Fraser Valley secure fair property settlements. Our BC-based family lawyers understand provincial laws and court precedents, ensuring your rights and financial future are protected.
An experienced local family lawyer ensures:
- Full Financial Disclosure – Identifying all assets and debts, including hidden or jointly owned property.
- Protection of Your Rights – Ensuring you are not unfairly burdened with debts or deprived of assets.
- Legally Binding Agreements – Drafting legally enforceable agreements that prevent future disputes.
- Strategic Legal Advice – Providing guidance on excluded property, asset protection, and debt responsibility.
If negotiations with your former partner are challenging, our experienced lawyers will advocate for your fair share through negotiation, or court representation if necessary.
When to Modify a Property Division Agreement?
Life circumstances change, and a property settlement that once worked may no longer be fair or practical. There are multiple reasons why you may need to modify your agreement including:
- Change in Income or Employment – One party experiences financial hardship.
- Newly Discovered Assets or Debts – Undisclosed property or liabilities come to light.
- Changes in Property Ownership – A jointly owned asset is sold or refinanced.
- Relocation – One party moves to a different province or country, affecting division terms.
If your property settlement no longer reflects your current financial reality, our lawyers can help you seek modifications or challenge unfair agreements.
Division of Family Property & Debt Lawyers in Port Moody
At Alder Law, we help our clients navigate the intricacies of property division. Our team of experienced family lawyers work with you to ensure that you receive a fair and just settlement that aligns with British Columbia’s Family Law Act.
We serve clients in Port Moody, Coquitlam, Port Coquitlam, Surrey, Abbotsford, Langley, and across BC. If you want to talk to one of our lawyers please call us at t 604 936 9600, email [email protected] or complete the contact form and we will be in touch.
Division of Family Property & Debt Lawyers FAQs
1. Am I responsible for my spouse’s debt?
In British Columbia, both spouses are equally responsible for family debt regardless of whose name the debt is under. The court will only order debts to be shared unequally if it would be “significantly unfair” to divide them equally.
2. What happens if a spouse tries to hide or sell property?
Both spouses have a legal obligation to provide full financial disclosure when dividing assets. If one spouse attempts to hide, transfer, or sell property to avoid fair division, the court may reverse transactions, order compensation, or impose penalties.
If you suspect your spouse is hiding assets, our family lawyers can help investigate and ensure you receive a fair settlement.
3. How much time do I have to divide family property or family debt?
In BC, you must make a claim for family property and debt division within two years of a divorce if you are married or within two years of separation for common-law partners who lived together for at least two years.
Missing this deadline may affect your ability to claim your share of assets or debts.
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