How Property Is Divided on Separation Under Manitoba's Family Property Act

When a relationship ends, one of the first questions is who keeps the house, the savings and the business. In Manitoba, The Family Property Act sets out a framework that starts from equal sharing, but the details matter.

This article walks through how the Act generally works, what can change the split, and the main steps and deadlines. It is general information, and your facts may lead to a different result.

This article covers the law of Manitoba.

Is it a 50/50 split?

Starting point: each spouse and common-law partner has the right, on application, to an accounting and, subject to section 14, an equalization of assets. The combined value is divided into two equal shares unless section 14 orders otherwise.

This is about value, not about splitting each item in half. One person might keep the home while the other receives other assets or an equalizing amount, depending on what is agreed or ordered.

Family assets and commercial assets

A family asset is owned by one or both 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.

Conduct is generally disregarded in dividing property unless it amounts to dissipation. The Act gives two years from the transfer or dissipation, or its discovery, to challenge dissipation or excessive gifts.

Married and common-law couples

Common-law partners are covered by the same equal-sharing accounting once they meet the definition, which is registration or three years of cohabitation. Exception: couples who had cohabited three years and separated before section 2.1 came into force are generally excluded, unless they resumed cohabiting and registered or cohabited at least 90 days after that date.

Be careful with definitions. The Family Law Act, which governs support, counts a common-law partner as someone who has cohabited for at least three years, or at least one year if they are together the parents of a child, or who has registered. Different statutes use different tests, so the definition in The Family Property Act may not match the one in The Family Law Act. Which test applies to your property claim is worth confirming with a lawyer.

Agreements and the family home

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. An agreement can also vary how a provision applies. Assets the agreement does not address remain subject to the Act.

Separately, The Homesteads Act protects the home. 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. A spouse with homestead rights may register a homestead notice, which blocks registration of a disposition until it is vacated or discharged.

• A spouse can release homestead rights in writing for valuable consideration, after which the land ceases to be that spouse's homestead.
• On the owner's death, a surviving spouse or common-law partner with homestead rights is entitled to a life estate, subject to exceptions.

Steps and deadlines

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 make interim orders.

An application generally may not be made more than 60 days after the divorce becomes absolute or takes effect, though the court may extend that in specified circumstances. For common-law partners, the limit is 60 days from registration of the dissolution if registered, or three years from when they began to live separate and apart if unregistered.

Separation itself needs no court order or formal agreement. A written agreement is recommended when there are children or issues about property or support, and both parties should get independent legal advice because it is a binding contract.

What to do next

• Write down the date you separated and the date of any divorce.
• List assets and debts, and sort them into family and commercial assets.
• Collect statements, titles, and tax returns for the family court financial disclosure.
• Check whether any agreement already exists and what it covers.
• Note every deadline and speak to a lawyer early, especially about the 60-day limit.

Frequently asked questions