How Is Family Property Valued After Separation in British Columbia?

When spouses argue about what an asset is worth, the first question is often which date counts. Many people assume it is the day you separated, but British Columbia law treats ownership and value differently.

This article explains the valuation date, what fair market value means for common assets like homes, vehicles and businesses, and when outside valuations tend to matter. It is general information, not advice on your situation.

This article covers the law of British Columbia.

Ownership and value use different dates

What counts as family property is fixed as at separation: what each spouse owns on separation, plus property derived from it afterward. Family property is everything the spouses own separately or together on that date, regardless of whose name it is in.

Value is a different question. Unless an agreement or order says otherwise, and except for pensions under Part 6, family property is valued at fair market value as of the date of the dividing agreement or the date of the court hearing, not the separation date.

A change in value after separation that goes beyond market trends and was caused by a spouse is one factor the court can consider when deciding whether an equal division would be significantly unfair, and the court may order an unequal division only if equal division would be significantly unfair.

What fair market value means in practice

In plain words, fair market value is the standard the law uses to put a dollar figure on each item of family property, rather than a number chosen by one spouse. The statute sets fair market value as the standard, and you and your spouse can agree in writing to value items differently.

Business interests, shares, bank account money and income tax refunds are all examples of family property. The details of valuing a business can be technical, so a lawyer or accountant can confirm what approach suits yours.

Special cases that change the numbers

• Excluded property: property acquired before the relationship began and inheritances are excluded property, but the increase in value since the later of the start of the relationship or the property's acquisition is family property and is shared. In the government's example, a house worth $300,000 at move-in and $500,000 at separation leaves the owner the original $300,000, and the $200,000 increase is shared.
• Who proves it: the spouse claiming property is excluded must demonstrate that.
• Pensions: only the portion earned during the relationship is family property, and pension valuation falls under Part 6 rather than the general fair market value rule.
• Debts: family debt is also part of the picture, and debt incurred after separation counts only if it was to maintain family property.

When disputes arise: disclosure and evidence

If you disagree on value, each side needs reliable information. A court may at any stage of a proceeding order a party to disclose information under the Family Rules, and that information can be used only to resolve the family law dispute.

In the Supreme Court, a spouse claiming property or debt division under Parts 5 or 6 must file a financial statement in Form F8, attaching documents such as tax returns for the three most recent years, notices of assessment and, for owners of real property, the latest property assessment notice. The statement must be filed at least 7 days before a judicial case conference. Provincial Court cannot divide property under Part 5.

If someone gives incomplete, false or misleading information, the court can draw an adverse inference, order payment of expenses, or make other orders.

What to do next

• List every asset and debt, noting what you owned on the separation date.
• Collect statements, assessment notices and records showing what each item was worth at the start of the relationship, if relevant.
• Decide whether an appraisal or business valuation is worth obtaining for the largest or most disputed items.
• Ask a lawyer or accountant how the valuation date applies to your assets, especially businesses and pensions.
• Keep an eye on deadlines: a proceeding to divide property generally must start within 2 years after a divorce judgment for married spouses, or after separation for spouses in a marriage-like relationship. That time limit is suspended while you are in family dispute resolution with a professional or a prescribed process, and a separate 2-year window applies to applications to set aside an agreement, running from when the spouse discovered or ought to have discovered the grounds.

Frequently asked questions