How is property divided when common-law partners separate in British Columbia?
This answer covers the law of British Columbia.
Common-law partners who have lived together in a marriage-like relationship for at least two years generally share family property and family debt equally when they separate. Family debt, meaning financial obligations incurred during the relationship up to separation and certain post-separation debts incurred to maintain family property, is shared in the same way.
Family property is property that at least one of you owns, or has a beneficial interest in, on the date of separation, including bank account money, shares, business interests and pension entitlements. Excluded property, such as property owned before the relationship, inheritances and gifts from third parties, is not part of family property, but you must prove a claim that property is excluded. Any increase in the value of excluded property, such as a house you owned before the relationship, is family property, but the starting value is not, and value received from a discretionary trust is not included.
The court can order an unequal division if equal division would be significantly unfair. Couples can also opt out of these rules by agreement. An application to divide property must generally be made within 2 years of the date you separated. A lawyer can confirm how these rules apply to your situation.
Key takeaways
- Common-law partners who lived together in a marriage-like relationship for at least two years can ask for property division, which was not possible for unmarried couples before 2013.
- On separation, each spouse generally has a right to an undivided half interest in all family property.
- Excluded property is not family property and you must prove a claim that it is excluded, but an increase in its value is generally shared, other than value received from a discretionary trust.
- For unmarried spouses the 2-year time limit to apply for property division runs from separation and is suspended during family dispute resolution.