What is family property?

When it comes to dividing assets during a separation or divorce, provincial legislation lays out what qualifies as family property. But what exactly does that entail? Let’s break it down in simple terms.

What is Family Property?

Family property encompasses both real property (like land and buildings) and personal property (such as household items, jewelry, and cash). Think of it as everything you own together or that either of you acquired during your relationship.

Examples of family property include:

• The family home (where you live together)
• Household furnishings
• Jewelry
• Vehicles
• Vacation properties
• Money in savings or investment accounts
• Pensions and retirement accounts
• Business holdings, and more.
  
  

What is Excluded Property?

However, not everything falls under the umbrella of family property. Excluded property refers to assets kept separate from the rest of your family property that is in a shared pool. This could be property you owned before you got married or moved in together, inheritances left to one spouse, gifts given to one spouse individually, and certain insurance proceeds or court awards.

Understanding Family Debt

Just as assets are divided, so too are debts. Any debts accumulated during the relationship are considered family debt, regardless of who incurred them or how they were used. This includes everything from credit card balances to mortgage payments.

What Happens Without an Agreement?

If there’s no agreement in place, the law assumes that family property should be divided equally between spouses, and family debts are shared responsibility. This serves as the legal starting point for property division in the event of a breakup.

The Power of Agreements

However, having an agreement can change the game entirely. With a written agreement, you have the flexibility to decide how property and debts will be divided in a way that works for you, rather than relying on the default rules set by legislation in your province.  It can also be a lot easier to talk about these things with your partner when you’re entering into a relationship, rather than when you’re ending one.

Why you need to understand family law

Understanding family property division is crucial for anyone entering into a long term relationship or navigating a separation or divorce. Whether you’re dividing assets or negotiating debts, knowing your rights and options empowers you to make informed decisions that protect your interests. 

NOTE: In BC, common-law couples and married couples are treated the same under family legislation.  That’s not the case in all provinces. Check out our article called “When am I common law?” to see some of the differences.

Ready to get started building an agreement with your partner? Click here!