The experienced Vancouver family property lawyers and BC family property division and valuation lawyers at MacLean Law routinely handle medium to high net worth BC family property and British Columbia excluded property claims. In earlier blogs we’ve discussed how BC excluded property is dealt with. Today we will explain how the BC and Vancouver family property division and valuation rules work. Our experienced Vancouver family law lawyers will guide you safely through to a successful post separation life so contact us now.
Our new Vancouver and BC family property legislation removes the troublesome need to determine how BC family property was used during a marriage. As well as changing the rules for how family property is divided in BC, the new BC Family Law Act property rules extend the new property division rules to couples living in marriage like relationships that have lasted longer than 2 years. It’s critical parties know the starting and ending values for assets they bring into the relationship and the starting values for their excluded property, whether it be a gift, an inheritance or from another source that makes the property excluded property.
The New BC Family Law Property Division Rules
Basically it’s 50/50 of every asset you can think of except excluded assets. Note that even for BC excluded assets the spouses, both married or in a common law marriage like relationship, share the gain on excluded property equally. We have high lighted the key types of property that are shared:
81 Subject to an agreement or order that provides otherwise and except as set out in this Part and Part 6[Pension Division],
(a) spouses are both entitled to family property and responsible for family debt, regardless of their respective use or contribution, and
(b) on separation, each spouse has a right to an undivided half interest in all family property as a tenant in common, and is equally responsible for family debt.
Family property
84 (1) Subject to section 85[excluded property], family property is all real property and personal property as follows:
(a) on the date the spouses separate,
(i) property that is owned by at least one spouse, or
(ii) a beneficial interest of at least one spouse in property;
(b) after separation,
(i) property acquired by at least one spouse if the property is derived from property referred to in paragraph (a) (i) or from a beneficial interest referred to in paragraph (a) (ii), or from the disposition of either, or
(ii) a beneficial interest acquired by at least one spouse in property if the beneficial interest is derived from property referred to in paragraph (a) (i) or from a beneficial interest referred to in paragraph (a) (ii), or from the disposition of either.
(2.1) For the purposes of subsection (2) (g), any increase in value of a beneficial interest in property held in a discretionary trust does not include the value of any property received from the trust.
(2) Without limiting subsection (1), family property includes the following:
(a) a share or an interest in a corporation;
(b) an interest in a partnership, an association, an organization, a business or a venture;
(c) property owing to a spouse
(i) as a refund, including an income tax refund, or
(ii) in return for the provision of a good or service;
(d) money of a spouse in an account with a financial institution;
(e) a spouse’s entitlement under an annuity, a pension, a retirement savings plan or an income plan;
(f) property, other than property to which subsection (3) applies, that a spouse disposes of after the relationship between the spouses began, but over which the spouse retains authority, to be exercised alone or with another person, to require its return or to direct its use or further disposition in any way;
(g) the amount by which the value of excluded property has increased since the later of the date
(i) the relationship between the spouses began, or
(ii) the excluded property was acquired.
(3) Despite subsection (1) of this section and subject to section 85 (1) (e), family property includes that part of trust property contributed by a spouse to a trust in which
(a) the spouse is a beneficiary, and has a vested interest in that part of the trust property that is not subject to divestment,
(b) the spouse has a power to transfer to himself or herself that part of the trust property, or
(c) the spouse has a power to terminate the trust and, on termination, that part of the trust property reverts to the spouse.
We have some of the top rated and most senior Vancouver Family Property Lawyers in British Columbia and we would be pleased to meet with you to help develop a plan to discretely separate your family property, excluded property and family debts so you can move forward with confidence to a satisfactory post separation life. Call Lorne MacLean, QC or any one of his top family law associates at 604-602-9000.
