Mandarin Excluded Family Property Lawyers at MacLean Law form one of the largest Mandarin and Cantonese fluent teams in Canada. Our Mandarin Excluded Family Property Lawyers act nationally with offices in Vancouver, Calgary, Toronto, and across BC where we have several offices in Victoria, Richmond, Surrey, and Fort St John. Go to our dedicated Chinese language family law and estate litigation site.
In cities like Vancouver where the average house price is $1 million, children are receiving substantial inheritances of real property or parental assistance with buying their first homes. As a result, inheritances and gifts from parents are becoming a more frequent issue in family law cases. In today’s blog, Susanna Chen, one of our dedicated Mandarin and Cantonese fluent Vancouver Excluded Family Property lawyers, explains how divorce may affect inheritances and gifts.
The BC Family Law Act sets out the rules for dealing with property and debt when a couple separates. Under section 85 of the FLA, any inheritances or gifts received from third parties are not family property but are considered “excluded property”, meaning that they are excluded from division upon separation or divorce. Even if the inheritances or gifts were received after the start of the relationship, your spouse will not be entitled to share a part of them upon separation or divorce. However, this is not the whole story.
Increase in Value
Even though inheritances and gifts are excluded property, any increase in the value of the inheritances or gifts are considered family property under the FLA. This means that any interest or income generated by the inheritances or gifts will be subject to the normal 50-50 division upon separation or divorce.
Transferred or Sold
If you transferred or sold your inheritances or gifts and put them into another asset, it is extremely critical that you document that transaction as you must be able to prove the initial value of the inheritances or gifts and trace it to an existing asset at the time of separation.
How to Protect Your Inheritances and Gifts
Our Vancouver Family Property lawyers provide practical tips below on how to protect your inheritances and gifts.
First, keep your inheritance and gifts separate from family property.
Second, keep bank records. As noted above, you will lose your claim to your excluded inheritance and gifts if you cannot prove it.
Finally, the best way to protect your inheritances and gifts is to do up a cohabitation or marriage agreement to clearly outline in writing the specifics of the inheritances and gifts, including the value of same, and also protect them against division in the event of separation or divorce.
Mandarin Excluded Family Property Lawyers 604 682 6466
Contact our experienced Mandarin Excluded Family Property Lawyers at 604 682 6466 today to find out more about cohabitation and marriage agreements.