- Manitoba sorts property into family assets and commercial assets, and the label affects how hard it is to depart from an equal split.
- Combined value is generally divided into two equal shares unless the court orders otherwise.
- Property claims have a time limit that can be as short as 60 days after a divorce takes effect, so timing matters.
If you are separating and you own a business, investments, or a mix of household and work property, one of the first questions is what actually gets shared. In Manitoba, the answer starts with whether an item is a family asset or a commercial asset.
This article explains those two categories in plain words, how each one is treated when property is divided, and what to watch for on deadlines. It is general information, not advice on your own situation.
This article covers the law of Manitoba.
What the two categories mean
Under The Family Property Act, a family asset is an asset owned by one or both spouses or common-law partners and used for shelter, transportation, or household, educational, recreational, social or aesthetic purposes. The family home and certain savings or chequing accounts are examples.
A commercial asset is simply an asset that is not a family asset. So the categories turn on how an asset is used, not only on what it is. Two items that look similar can end up in different categories depending on their use.
How each category is shared
Each spouse and common-law partner has a right, on application, to an accounting and, subject to the Act's exceptions, an equalization of assets. The combined value is divided into two equal shares unless the court orders otherwise.
The difference between the categories is how easily the court can depart from that equal split.
| Family assets | Commercial assets | |
|---|---|---|
| Starting point | Equal sharing | Equal sharing |
| Test to change it | Equal sharing would be grossly unfair or unconscionable | Equal sharing would be clearly inequitable |
| Factors the Act mentions | Extraordinary circumstances, or the extraordinary nature or value of the assets | Length of cohabitation, length of separation and any agreement |
In short, the threshold for changing the split is lower for commercial assets than for family assets.
Businesses, investments and mixed property
A business or investment portfolio is often where people expect a different result. Because a commercial asset is defined as anything that is not a family asset, the classification depends on how each item is actually used. A vehicle used for both family travel and work, or an account used for both household bills and business costs, can raise real questions.
- List every significant item: home, vehicles, bank and investment accounts, business interests, tools and equipment.
- Note how each item is used day to day, and who owns it.
- Gather statements and records showing values and ownership.
- Flag anything that mixes household and business use, because the category may be disputed.
How a particular business interest or mixed-use item is valued and classified depends on the facts. This is a good point to speak with a lawyer, and often an accountant or valuator as well.
What does not change the split, and what can
Conduct is generally disregarded when dividing property, unless it amounts to dissipation. If you believe the other spouse wasted assets or made excessive gifts, there is a limit of two years from the transfer or dissipation (or its discovery) to challenge it.
A written agreement can also change the picture. The Act does not apply to an asset disposed of by a spousal agreement or common-law relationship agreement, or made inapplicable by its terms, and agreements can vary how the Act applies. Assets the agreement does not address remain subject to the Act.
Common-law partners are covered by the same equal-sharing accounting once they meet the definition, which means registering the relationship or cohabiting for at least three years. There is an exception: couples who had cohabited three years and separated before section 2.1 came into force are generally excluded from this accounting, unless they resumed cohabiting and then registered, or cohabited at least 90 days after that date.
Deadlines and next steps
A property application generally may not be made more than 60 days after the divorce becomes absolute or takes effect, although the court may extend the time in specified circumstances. For common-law partners, the time is 60 days from registration of the dissolution if registered, or three years from when they began to live separate and apart if unregistered.
Claims go to the Court of King's Bench. The applicant must file and serve a sworn statement of assets and liabilities, the respondent has 14 days to respond with a similar statement, and the court may make interim orders.
- Check your deadline early, before the divorce takes effect.
- Gather records for every asset and debt.
- Sort items into likely family and commercial categories.
- Check whether any prenuptial or other agreement exists.
- Get legal advice before you sign anything about property.
Frequently asked questions
Is my business a commercial asset?
A commercial asset is any asset that is not a family asset, and a family asset is defined by its use for things like shelter, transportation or household purposes. A business interest is therefore often commercial, but the answer depends on how it and its assets are used. A lawyer can confirm how your specific interests would be treated.
Do commercial assets get split equally too?
The starting point is equal sharing of the combined value. For commercial assets, the court may change that if equal sharing would be clearly inequitable, considering factors such as the length of cohabitation, length of separation and any agreement.
Does it matter who caused the breakup?
Generally no. Conduct is disregarded in dividing property unless it amounts to dissipation.
Do common-law partners share property the same way?
Common-law partners are covered by the same equal-sharing rules once they meet the definition, meaning they registered or cohabited for at least three years. The deadline to apply is different from that for married spouses.
Sources
- The Family Property Act, CCSM c. F25 — web2.gov.mb.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a family law question
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