How Do I Get Out of Sharing My Assets?

Married spouses and unmarried spouses

Presumption of shared property

Married spouses and unmarried couples who have lived together for at least two years are presumed to have a one-half interest in all property either or both of them acquired after the date the couple married or began to live together, whichever came first.

Excluded property

Certain property is excluded from the family property the spouses are expected to divide, including:

• the value of the property owned by each spouse on the date the couple married or began to live together, whichever came first,
• property bought with the property owned by each spouse on the date the couple married or began to live together,
• inheritances and gifts (provided that the gift was to the spouse only and not to the couple) received during the relationship,
• court awards for damages incurred prior to the relationship and insurance proceeds for pain and suffering (not wage loss) received during the relationship, and
• trusts to which the spouse did not contribute and which the spouse does not control.

Agreements

If you want to do better than this, you'll have to sign a marriage agreement or a cohabitation agreement at some point before or shortly after you marry or begin to live together. To ensure that agreement is enforceable, it is best practice to ensure both you and your spouse receive independent legal advice (ILA), and that you update the agreement any time you begin to depart from the terms of the agreement (for example, if you agreed to terms that assume no children, but you and your spouse later have kids).

Practical tips for managing assets in a relationship

If you don't want to spend the money getting an agreement drawn up, here are some other things that can help:

• When you begin to live together, take copies of the statements from all of your bank, investment, retirement, credit, and loan accounts, copies of your BC Assessments for all real property and staple them together and put them in a safety deposit box. This will help you to establish the value of the property you brought into the relationship.
• During your relationship, keep a careful record of what you buy with the property you brought into the relationship (so you can trace the excluded property that was used to buy new property during the relationship).
• During your relationship, keep records of the dates and values of any inheritances, gifts, insurance proceeds, or court awards that you receive.
• If you received a gift during the relationship, keep documents that proves the intention of the gift-giver (i.e. a letter, note, or electronic communication from the donor stating that the funds were a gift only to this particular person/spouse and not a gift to the couple, especially if the funds are then used to buy family property).
• Keep an eye on the debts your spouse incurs during the relationship.

Recent changes to law

In May 2023, the BC Government made updates to the Family Law Act that were intended to clarify how spouses can prove and trace their separate (excluded) property over time. For example, if you brought a home or bank account into the relationship and later added your spouse’s name as a joint owner, that does not automatically mean your spouse is entitled to half. The judge will look at your intention at the time and whether you intended to gift that property to your spouse.

Court discretion in some cases

Under section 96 of the Family Law Act, if the court decides it would be significantly unfair not to divide up excluded property, the court has the power to do this. The factors the court will look at include how long the relationship lasted, and what the other spouse did to help with that property, but there are other factors that the court can turn to, and much of that is discretionary. A situation where things are significantly unfair is more likely in a relationship that has lasted longer than 20 years, a relationship where there are children, where there is any kind of verbal agreement about dividing the property someone now claims is excluded, and if there is insufficient income and family property available within the available family property pot to satisfy a spouse's entitlement to spousal support.

You can find out more about how married spouses and unmarried spouses divide property and debt in the chapter Property and Debt in Family Law Matters.

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Shannon Beebe, September 24, 2023.

JP Boyd on Family Law © John-Paul Boyd and Courthouse Libraries BC is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 2.5 Canada Licence.

Normally referred to as the "Supreme Court of British Columbia," this court hears most of the trials in this province. The Supreme Court is a court of inherent jurisdiction and has no limits on the sorts of claims it can hear or on the sorts of orders it can make. Decisions of the Provincial Court are appealed to the Supreme Court; decisions of the Supreme Court are appealed to the Court of Appeal. See "Court of Appeal," "jurisdiction," "Provincial Court" and "Supreme Court of Canada."

A court established and staffed by the provincial government, which includes Small Claims Court, Youth Court, and Family Court. The Provincial Court is the lowest level of court in British Columbia and is restricted in the sorts of matters it can deal with. It is, however, the most accessible of the two trial courts and no fees are charged to begin or defend a family law proceeding. The Family Court of the Provincial Court cannot deal with the division of family property or any claims under the Divorce Act. See "Divorce Act," "judge" and "jurisdiction."

Something which can be owned. See "chattels" and "real property."

A term under the Family Law Act referring to property acquired by either or both spouses during their relationship, as well as after separation if bought with family property. Both spouses are presumed to be entitled to share equally in any family property. See "excluded property."

Under the Divorce Act, either of two people who are married to one another, whether of the same or opposite genders. Under the Family Law Act, spouse includes married spouses, unmarried parties who have lived together in a marriage-like relationship for at least two years, and, for all purposes of the act other than the division of property or debt, unmarried parties who have lived together for less than two years and have had a child together. See "marriage" and "marriage-like relationship."

A voluntary transfer of property from one person to another, without expectation of payment or reward. Gifts to one spouse do not usually qualify as family property, and are excluded from the pool of property to be divided. See "donee," "donor," "excluded property" and "family property."

An award of money payable by one party to a court proceeding to another, usually as compensation for loss or harm suffered as a result of the other party’s actions or omissions. In family law, damages are usually awarded to one party in compensation for breach of contract or spousal abuse. See "breach of contract" and "tort."

An agreement signed by people who are planning on marrying or who have married that is intended to govern their rights and obligations in the event of the breakdown of their marriage and, sometimes, their rights and obligations during their marriage. See "family law agreement."

An agreement signed by people who are or have begun to live together in a marriage-like relationship that is intended to govern their rights and obligations in the event of the breakdown of their relationship and, sometimes, their rights and obligations during their relationship. See "family law agreement."

A parcel of land including any buildings on that land. See "chattel," "ownership" and "possession."

A term under the Family Law Act referring to property acquired by a spouse prior to the commencement of the spouses' relationship and certain property acquired by a spouse during the relationship, including gifts, inheritances, court awards, and insurance payments. A spouse is presumed to be entitled to keep their excluded property without having to share it with the other spouse. See "family property," "gift" and "inheritance."

A person who gives a gift or bequest to someone, freely and without expectation of payment in return.

In law, (1) a lawyer's bill to their client or a statement, or (2) a person's recollection of events.

A person appointed by the federal or provincial government to manage and decide court proceedings in an impartial manner, independent of influence by the parties, the government, or agents of the government. The decisions of a judge are binding upon the parties to the proceeding, subject to appeal.

A payment made by one spouse to the other spouse to help with the recipient's day-to-day living expenses or to compensate the recipient for the financial choices the spouses made during the relationship.

A sum of money or an obligation owed by one person to another. A "debtor" is a person responsible for paying a debt; a "creditor" is the person to whom the debt is owed.