British Columbia’s Family Law Act calls for the equitable division of marital property during divorces. It’s designed to help divorcing spouses divide their assets fairly before going their separate ways. However, some wonder, “What is the equitable division of marital property?” since certain aspects seem open to interpretation.
If you want to avoid the confusion that sometimes accompanies the property division process in BC, learn more about it so you know what to expect. Continue reading to discover how divorce assets are divided before court rulings are finalized.
Understanding What the Equitable Division of Marital Property Entails
Each Canadian province takes a slightly different approach to property division. In British Columbia, for example, divorcing spouses usually split their marital assets — or community property — right down the middle. Each side walks away from a marriage with around 50% of these assets, which may include real estate, vehicles, bank accounts, investment funds, etc.
However, exceptions exist. For instance, a divorce court might deviate from dividing assets 50/50 if a judge determines that doing so would result in an unfair distribution for one spouse or the other. They may decide this after considering certain key factors, such as:
- The length of a couple’s marriage
- The contributions each spouse made during their marriage
- Each spouse’s current financial situation
These factors might impact spousal entitlement during property division in BC. After considering them, a judge may divide a marital estate differently. This highlights the importance of hiring the right attorney to assist you during every aspect of a divorce.
Proving When Property Should Be Excluded From Equitable Division
Now that you know the answer to the question, “What is the equitable division of marital property?” you should better understand how you and your soon-to-be ex-spouse will divide your assets in divorce court when the time comes. However, you should know that divorcing spouses often debate more than just whether they should accept an even 50/50 split of their collective possessions.
They might also disagree about which assets should be included in the process, as certain items may be excluded.
Here are a few examples:
- Pre-marriage assets
- Inherited assets
- Personal injury lawsuit proceeds
This further highlights one of the many complications that may arise during the equitable division of marital assets. It also emphasizes how essential it is for anyone going through a divorce to hire the right lawyer to represent them.
BC Court of Appeal decision Shih v Shih, 2017 BCCA 37 states that you must present “clear and cogent evidence” to prove that excluded property should not be considered marital assets. A trusted attorney will assist you in doing this.
Recognizing How Hidden Assets Could Affect the Property Division Process
As if the complications caused by excluded property didn’t make things confusing enough, those going through divorces in BC must look out for another potential problem during the property division process: hidden assets. Some divorcing spouses — especially those involved in high-net-worth divorces — may attempt to deceive you and a divorce court by purposely concealing assets and not including them in the equitable division of marital property.
This violates BC’s Family Law Act and creates an unfair situation. You should advise your attorney immediately if you suspect your spouse is hiding assets to prevent their equitable division. It could lead to you being awarded additional assets and your spouse being held in contempt of court.
Let Our British Columbia Property Division Lawyers Help With Your Divorce Case
If you’re preparing to divorce and wondering, “What is the equitable division of marital property?” Pier Law & Mediation’s lawyers can help. We will ensure that you understand how the process works.
Contact us at 604-560-8285 or complete this form to seek our legal services.
