1. Property division laws in British Columbia: An overview

In British Columbia, the Family Law Act (FLA) sets out how property is divided when a marriage or common-law relationship ends. The law applies to:

• Married couples

• Common-law couples i.e. persons who have lived together in a marriage-like relationship for at least two years

The creates a presumption of equal division of family property and family debt, but courts may adjust the split if it would be significantly unfair in certain circumstances [1].

2. What counts as family property in BC divorce cases

Under the FLA, family property includes everything owned by at least one spouse at the date of separation unless the property falls into one of the categories of excluded property.   Family property can include:

• Real estate whether owned by one spouse or both

• Investments and savings

• Pensions and RRSPs (Division of Pensions is more nuanced and takes into account factors such as the proportion of pensionable service during the relationship vs not during the relationship)

• Business interests

The value of family property is based on its fair market value at the date of trial unless it would be significantly unfair to do so.  Parties can agree to use other valuation metrics or valuation dates[2].

3. Excluded property in BC and how it’s treated in divorce

Some property is excluded from the definition of family property and its presumption of equal division.  Excluded property can include:

• property acquired by a spouse before the relationship began
• inheritances to a spouse
• gifts to a spouse from a third party
• settlement or an award of damages as compensation for injury or loss (e.g. damages for personal injury claim), unless the settlement or award represents compensation for loss to both spouses or lost income of a spouse

While excluded property is presumptively not divided, any increase in value of the property since the relationship start date (or date the excluded property was acquired, if later) is family property.  For example, if Spouse A enters the relationship with a $200,000 investment that grew to $250,000 at the date of division, and there were no deposits or withdrawals made during the relationship.  The initial $200,000 would be the excluded property of Spouse A.  The growth of $50,000 would be family property and divided equally.  Spouse A would receive $225,000.  Spouse B would receive $25,000.

The spouse claiming that property is excluded property has the onus of proving its exclusion.  This is important as it is the specific asset that is excluded, not just the value of the asset.  As such, exclusion protection can be be lost if excluded funds become commingled with other family property.  For example commingling will occur if a spouse takes money they acquired prior to the relationship and puts it in the same chequing account they own jointly with their spouse in which they both deposit their employment income and from which they pay everyday expenses.

Determining what is or is not excluded property can feel overwhelming, but the right legal guidance can help bring clarity and give you the best chance of holding on to what matters most [3].

4. The equal division rule in BC and when it may not apply

The law presumes an equal 50/50 split of family property and family debt. However, the court may order a different apportionment if equal division be “significantly unfair”. Factors  affecting whether there exists significant unfairness include:

• The duration of the relationship

• Whether family debt was incurred in the normal course of the relationship

• whether a spouse, after the date of separation, caused a significant decrease or increase in the value of family property or family debt beyond market trends;
• and more

The presumption for excluded property is the reverse.  Excluded property is not usually divided but a court may order its division if family property or family debt located outside British Columbia cannot practically be divided, or if it would be significantly unfair not to divide excluded property.

Obtaining guidance on what property and debt division is likely to look like for you is essential in order to set realistic expectations and make informed plans for the future.

5. Unique challenges in high-net-worth divorce and property division

For families with large amounts of family property, dividing property can be far more complex. Challenges often include:

• Valuing businesses and professional practices – determining fair market value often requires expert valuations

• Multiple properties – including vacation homes, rental properties, or cross-border real estate

• Complex investments – such as trusts, stocks, or offshore accounts

• Tax implications – transfers or sales of assets can trigger significant tax consequences

An experienced family lawyer can work alongside accountants and tax professionals to protect your interests and guide you through even the most complicated property division.

6. How to protect your assets during separation in BC

If you are concerned about protecting wealth in a separation, proactive steps can help:

• Consider agreements such as prenuptial, postnuptial, or cohabitation contracts

• Avoid commingling excluded property with family property (e.g., don’t mix inheritance money with joint accounts)

• Get professional valuations of businesses and investments early in the process

Taking these precautions can reduce conflict and ensure a smoother division if separation occurs.

7. Why you need a BC family lawyer for complex property division

For high-asset families, property division is rarely straightforward. A family lawyer can help by:

• Advising on your rights and obligations under the FLA

• Negotiating or mediating fair settlements

• Representing you in court if disputes arise

• Ensuring all agreements are enforceable and tax-conscious

Working with an experienced lawyer can help you avoid costly mistakes and ensure your wealth is protected long-term [4].

8. Conclusion: Protecting your wealth in a BC divorce

Dividing property in a high-asset divorce is rarely simple. Understanding the rules under BC’s Family Law Act, and how they apply to family property, excluded property, and unique wealth scenarios, is key to protecting what you’ve built.