The family property and separation lawyers at MacLean Law point out there are three kinds of property that BC family property courts deal with when a relationship breaks down. In the recent BC Family Property case Madruga v Madruga the court noted a severance payment received by the husband post separation was not family property nor was it shareable by the ex-husband with his ex-wife. So how does BC family property and separation work?
In BC, we have excluded property, family property and property that wasn’t owned by either spouse until after they separated. Excluded property is very rarely shared, family property is mostly divided equally and property acquired after the parties separate by one spouse alone provided it was not acquired with proceeds from family property isn’t shared at all.
Family Property does not include the starting value of property brought into a relationship nor property acquired after the parties have separated whether they are married or in a common law relationship that lasted longer than two years. When you are involved in a Family property and separation case you need to know your rights to ensure a fair settlement is reached.
[19] When Mr. Madruga lost his job after separation, he received a severance package totalling $83,000. I understand Ms. Guichon to also claim an interest in that. Cases under the former Family Relations Act, R.S.B.C. 1996, c. 128 held that severance pay received after separation was not a family asset: Jenkins v. Jenkins (1993), 81 B.C.L.R. (2d) 133 at paras. 12-22 (S.C.), Giebelhaus v. Giebelhaus, 2012 BCSC 1100 at para. 28. Nothing in the FLA mandates a different approach. Indeed, s. 84 specifically defines family property as property owned by a spouse “on the date the spouses separate” (emphasis added).
Our tenacious and detail oriented Family property and separation lawyers will ensure the property brought into, acquired during and acquired after your relationship ends is properly categorized and fairly divided.