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Under the BC Family Law Act there is a provision that allows for excluded property. The requirements to exclude a property during a BC divorce can be complicated and should be reviewed by an experienced BC family lawyer who understands the property division and excluded property rules.

How is BC Property Treated?

Property in BC  that is received by one spouse alone is not shared except for the gain that occurs on it during the marriage, or in a common law or marriage like relationship that has lasted more than 2 years. The person claiming the property is excluded such that its starting value is not shared, bears the onus of proving it came from an excluded source and was received by them alone and not jointly by both spouses. When excluded property is used to buy new property the exclusion may be traced into the new property. “Tracing” is tricky so call us about this complex topic. Whenever someone seeks to have property excluded from the BC Family Law Act’s family property division, an experienced family lawyer should be consulted by each spouse.

What Is BC Excluded Property Under the BC Family Law Act?

BC Excluded property

85  (1) The following is excluded from family property:

  1. property acquired by a spouse before the relationship between the spouses began;
  2. inheritances to a spouse;
    1. (b.1) gifts to a spouse from a third party;
  3. a settlement or an award of damages to a spouse as compensation for injury or loss, unless the settlement or award represents compensation for
    1. loss to both spouses, or
    2. lost income of a spouse;
  4. money paid or payable under an insurance policy, other than a policy respecting property, except any portion that represents compensation for
    1. loss to both spouses, or
    2. lost income of a spouse;
  5. property referred to in any of paragraphs (a) to (d) that is held in trust for the benefit of a spouse;
  6. a spouse’s beneficial interest in property held in a discretionary trust
    1. to which the spouse did not contribute, and
    2. that is settled by a person other than the spouse;
  7. 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.

Need Help With A BC Excluded Property Case?

Excluded property in British Columbia is a developing concept and how the property is used may pose complications.  If property is put in joint names or excluded BC property is used to buy joint property or to pay off joint debts problems excluding it may occur.  How you use your BC excluded property and what happens if it goes down or up in value is something that requires advance discussion with one of our acclaimed BC family law lawyers.

If you have concerns over the division of BC family property or BC excluded property, don’t wait to meet with us. Call our BC property lawyers now toll free at 1-877-602-9900 or fill out our quick and easy contact form.

We have 4 family property division offices across BC in Vancouver, Surrey, Kelowna and Fort St John, BC.  Call us toll free right away if you have a case involving BC excluded property or BC family property at 1-877-602-9900.