DIVISION OF PROPERTY

How is family property divided after a separation?

In British Columbia, the Family Law Act sets out how family property is divided after a relationship ends. The law applies the same both to married couples and unmarried couples who have been living together for two years. On separation, both parties are presumed to have an equal entitlement to all family property. This can include:

the family home,
bank accounts and investments,
business or corporate assets,
pensions and RRSPs, and
insurance policies.

It does not matter who owns the property at the time of separation. The Family Law Act defines “family property” to include all assets owned by either spouse at the time of separation.

What assets are excluded from division?

Not all property gets divided after a relationship ends. Assets which a spouse brought into the relationship, inheritances, an award of damages in an injury claim, or money paid out under an insurance policy are all included in the definition of “excluded property” and are not divided. The rules around valuing and tracing these assets are complex. If you are in the process of separating and think you have an excluded property claim, speak with an experienced family lawyer as soon as possible.

What if my ex is hiding assets?

As part of the legal process, both parties are normally required to provide a sworn statement of their assets and debts to the court. Some litigants do not make full disclosure and attempt to hide their assets to lower their amount of divisible family property. Non-disclosure of assets is illegal. It is described by judges at the BC Supreme Court as the “cancer” of family law litigation. To ensure both parties receive their fair share of family property, lawyers and parties must be zealous in obtaining full disclosure including all account statements, tax returns, and business records.

How is family debt divided after a separation?

Debts incurred during the relationship, including mortgages, lines of credit, and credit card debt, are normally split 50/50 between the parties. Debt incurred by a party post-separation will ordinarily not be split unless the debt was incurred for the benefit of both parties or used to pay for the upkeep of family property.

How do I protect my entitlement to family property?

Property division in family law can be complex. Expert valuations and legal research are often required to ensure that parties split their assets and debts properly after separation. The experienced family lawyers at Virgin Law Group can advise you on your rights and entitlements to family property, and can steer you towards a fair resolution of your claim.

FORECLOSURE

Home foreclosure is a common concern for separating or divorcing couples. Couples often stop making payments on their matrimonial homes due to disputes over finances. Foreclosure proceedings complicate the divorce process, which is why it is vital to seek experienced legal counsel.

Our lawyers can help you determine your best options if your matrimonial home has gone into foreclosure.

JOINT DEBT

When two people share debt, and one person declares bankruptcy, it can have a significant impact on the person who is not declaring bankruptcy, and who might be considered liable for credit card and other joint debt.

In both bankruptcy and foreclosure, the positioning of your claim to property is critical. In divorce and separation, bankruptcy complicates the division of assets, especially in cases where one spouse declares bankruptcy before the issuance of a court order.

As one of the largest groups of family law practitioners in British Columbia, Virgin Law Group is known for knowledge and experience in all matters that accompany separation and divorce, including foreclosure and joint debt.