Understanding Family Property Division in British Columbia: Common Misconceptions & 2023 Law Changes
Understanding how family property is divided in British Columbia can help you avoid costly mistakes—both emotional and financial. Here’s a breakdown of the five most common misconceptions people have about BC family property laws and how to avoid them, additionally the new change in the law in 2023 may change the concept of exclusion .
Mistake #1
Thinking BC Family Property Is Always Divided Equally
In BC, property is divided equitably, not necessarily equally. The courts start with a 50/50 split, but this can shift based on several factors, such as:
- The length of the relationship
- Pre-existing assets or large inheritances
- Contributions to the family or career sacrifices
- Medical hardships or family debt
- A spouse’s financial behavior around separation
Property may also be excluded from division in specific scenarios, especially in short-term relationships.
Mistake #2
Believing “Cheaters” Get Nothing
Canada follows a “no-fault” divorce system. The courts do not penalize adultery when dividing property—unless family funds were used to support an affair. While adultery can allow for a quicker divorce, it doesn’t impact how assets are split. In fact, rushing into divorce before property division may have negative tax consequences.
Mistake #3
Assuming the Higher Earner Keeps Everything
It doesn’t matter who made the money. Unless a legal agreement specifies otherwise, all earnings during the marriage are considered family property, and are subject to division. The default rule is equal division, regardless of income disparity
Mistake #4
Thinking Legal Title Determines Ownership
Titles don’t always reflect ownership. Even if an asset is only in one spouse’s name, it may still be considered family property. The courts look beyond titles to intention, use, and contribution, and determine whether an asset was meant to be jointly shared or kept separate.
