How Is Property Divided in a Divorce in Manitoba?

Dividing property is often the most stressful part of a divorce. In Manitoba, The Family Property Act sets out a clear starting point, and then limited reasons a court can depart from it.

This article explains the equal-sharing rule, how assets are sorted, the steps in a property claim, and the situations where the result can change.

This article covers the law of Manitoba.

The basic equal-sharing rule

Under The Family Property Act, each spouse and common-law partner has the right, on application, to an accounting and, subject to the exceptions, an equalization of assets. The combined value is divided into two equal shares unless the court orders otherwise.

Common-law partners are covered on the same footing once they meet the definition, which means registering the relationship or three years of cohabitation. There is an exception for some couples who cohabited and separated before section 2.1 came into force.

Family assets and commercial assets

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. It includes the family home and certain savings or chequing accounts. A commercial asset is any asset that is not a family asset.

The label matters because the test for departing from equal sharing differs between the two, as the table shows.

When a court can depart from equal sharing

• Extraordinary circumstances, or the extraordinary nature or value of assets, can support a change for family assets.
• Conduct is disregarded in dividing property unless it amounts to dissipation.
• There are two years from the transfer or dissipation (or its discovery) to challenge dissipation or excessive gifts.
• A spousal or common-law relationship agreement can make the Act inapplicable to certain assets or vary how it applies, but assets the agreement does not address remain subject to the Act.

The family home also has special protection. An owner may not dispose of the homestead during their lifetime unless the spouse or common-law partner consents in writing in the prescribed form. These rights exist whether or not the non-owner is on title.

The steps in a property claim

Property claims are made to the Court of King's Bench. The applicant must file and serve a sworn statement of assets and liabilities, and the respondent has 14 days to respond with a similar statement. The court may also make interim orders.

In the Family Division, steps generally include filing and serving documents, completing prerequisites such as the For the Sake of the Children Program, financial statements on Form 70D with three years of tax returns, and Form 70D.5 if property is in issue, followed by a triage conference and a case conference. Uncontested divorces follow a different process.

An application may not be made more than 60 days after the divorce becomes absolute or takes effect, though a court may extend this in specified circumstances. Common-law partners have different time limits.

How particular debts are treated depends on the facts, so ask a lawyer about yours.

What to do next

• List everything you own and owe, and note whether each asset is a family or commercial asset.
• Gather statements, titles, and three years of tax returns.
• Check whether any prenuptial or other agreement applies.
• Do not sell or transfer the family home without checking homestead rules.
• Check which deadline applies to you, because under The Family Property Act it is 60 days after the divorce takes effect for married spouses, but for common-law partners it is 60 days from registration of the dissolution if registered, or three years from when you began to live separate and apart if unregistered.

Frequently asked questions