The BC government has released new Family Law Act Bill that will propose sweeping changes to British Columbia family law. For the 1st time in British Columbia couples in marriage like relationships- also called BC common-law relationships- will now be governed by a statutory presumption of equal division of assets upon marriage breakdown. However, while allowing common-law couples to share in the presumptive equal division of assets the rules for how marriage property will be divided moving forward have also changed for married couples and unmarried persons.
For the 1st time broad types of property will be excluded from sharing upon marriage breakdown. This property is called excluded property and the section governing this property and what is excluded reads as follows:
85 (1) The following is excluded from family property:
(a) property acquired by a spouse before the relationship between the spouses
began;
(b) gifts or inheritances to a spouse;
(c) a settlement or an award of damages to a spouse as compensation for injury or loss, unless the settlement or award represents compensation for
(i) loss to both spouses, or (ii) lost income of a spouse;
(d) money paid or payable under an insurance policy, other than a policy respecting property, except any portion that represents compensation for
(i) loss to both spouses, or (ii) lost income of a spouse;
(e) property referred to in any of paragraphs (a) to (d) that is held in trust for the benefit of a spouse;
(f) property held in a discretionary trust
(i) to which the spouse did not contribute,
(ii) of which the spouse is a beneficiary, and
(iii) that is settled by a person other than the spouse;
(g) property derived from property or the disposition of property referred to in any of paragraphs (a) to (f).
(2) A spouse claiming that property is excluded property is responsible for demonstrating that the property is excluded property.
It is expected that the legislation will be debated and likely passed with little or no changes. With respect to property brought into a marriage we recommend that you meet with us to go over your options with respect to whether you wish to start an action under the old legislation or the new legislation. We also recommend that you consider having property valued as at the date of marriage as we expect this will be an area where significant litigation will develop.
CALL US if you need help province wide at 1 877 602 9900.
