The
new Family Law Act came into force on March 18, 2013 and there are several
changes in the Property division of the Act. Under the new Family Law Act,
unmarried couples (common law) for at least 2 years are considered to be
spouses and are treated the same as married couples for the purpose of property
division.
What
is Family Property?
Family
property is all property that either spouse owns at separation, regardless of
who's name it is in, including the family home, RRSPs, investments, shares,
income tax refunds, bank accounts, insurance policies, and pensions, unless the
property is excluded.
What
is Excluded property?
Excluded
property includes property acquired by a spouse or held in trust before the
relationship, gifts or inheritances, settlements or rewards of damage, and
moneys paid under an insurance policy, other than a policy respecting property.
The exclusion does not include increases in property value during the
relationship.
Debt
accrued during the relationship is also presumptively equally shared. This
includes mortgages, loans, bank lines of credit or over drafts, credit cards,
income tax, and repair costs.
Common
Law Couples who do not want the property division rules to apply to them can
opt-out by preparing a written agreement and divide their property and debt as
they see fit. Couples can also enter into a cohabitation agreement.
As
always, it is in your best interest to obtain legal advice before proceeding.
Courtesy
of REBGV.