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Dividing Property in BC Divorce Key Facts and Excluded Assets

Mandy Shergill10 July 20252 min read

When going through a divorce in British Columbia, one of the most complex aspects is determining how to fairly divide family assets between spouses. Under BC's Family Law Act, there are specific rules about which assets are considered "family property" that must be divided equally, and which assets can be excluded from division. This comprehensive guide explains the key principles and process of property division during divorce in BC.

Dividing Property in BC Divorce Key Facts and Excluded Assets

Understanding Family Property vs. Excluded Property

In British Columbia, the Family Law Act establishes two main categories of property:

Family Property (To Be Divided)

  • Property acquired during the relationship
  • Increases in value of excluded property during the relationship
  • Income earned during the relationship
  • RRSPs and pensions accumulated during marriage
  • Family homes, vehicles, and other shared assets

Excluded Property (Not Subject to Division)

  • Property owned before the relationship began
  • Inheritances received by one spouse
  • Gifts from third parties to one spouse
  • Court awards and insurance settlements
  • Certain trust property

Key Dates for Property Division

Two critical dates affect property division in BC:

Date of Cohabitation/Marriage: When calculating excluded property

Date of Separation or Date of Trial/Settlement: The valuation date for dividing family property

Steps in the Property Division Process

  1. Identify and list all assets and debts
  2. Determine which assets qualify as excluded property
  3. Value all property as of the separation date
  4. Calculate the increase in value of excluded property
  5. Divide family property equally unless unequal division is justified

Special Considerations for BC Residents

  • BC's property division rules apply to both married couples and common-law partners who have lived together for 2+ years
  • Claims for property division must be started within 2 years of divorce or separation
  • Courts can order unequal division if equal division would be "significantly unfair"

This information is provided for educational purposes only and does not constitute legal advice. Every family law situation is unique and requires personalized legal guidance.

Our experienced lawyers can help you navigate property division during divorce while protecting your interests. Contact us today for a confidential consultation to discuss your specific situation.

Frequently asked questions

What happens to the family home?

The family home is typically considered family property regardless of whose name is on the title. Its full value is usually subject to equal division unless one spouse can prove they used excluded property to purchase it.

Can we agree to divide property differently?

Yes, spouses can create their own property division agreement as long as it's fair and both parties receive independent legal advice.

What if property was purchased before marriage?

The original value is excluded, but any increase in value during the relationship is considered family property to be divided.

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This article is general information about family law in British Columbia. It is not legal advice for your situation. Speak with a lawyer about the facts of your own matter.

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