Family Property Division in BC: Legal Defaults vs. Mediation Agreements

Division of Family Property and Debt in British Columbia

Key Principles of Property and Debt Division in BC-

This is a good example of what the law says and how this can be change during mediation in order to satisfy the couples, not only the law.

Equal division is the default: All property and debts classified as family property are normally divided equally between spouses, regardless of whose name appears on the title or who incurred the debt.
Excluded property : Assets owned by one spouse before the relationship, or received as a gift or inheritance during the relationship, are considered excluded property and are not shared.
Increases in value of excluded property: If an excluded asset increases in value during the relationship, that increase in value may be divided equally between spouses.
Family debt: Debts incurred during the relationship — such as mortgages, credit cards, or loans — are treated as family debt and are typically shared equally unless the spouses have agreed otherwise.
Agreements between spouses: Spouses may agree to a different division of property and debt through a separation agreement. Courts generally uphold these agreements if they are made fairly and voluntarily.

When Couples Choose a Different Approach

Sometimes, couples agree not to divide the net family property equally. In mediation, we take time to understand both points of view, exchange opinions openly, and consider what is most practical and fair based on each person’s circumstances and needs.

If the couple reaches a mutual understanding that feels right to both, that becomes their agreement — and we fully support that decision.

Example:

In one real case, the husband owned an excavation company and was responsible for paying child and spousal support. If he had divided the business assets equally, he would have been unable to meet his ongoing support obligations. Recognizing this, his former spouse agreed that he could retain the business assets so that he could continue to make the agreed support payments to her. This arrangement reflected both fairness and practicality, and allowed each party to move forward with security and respect.

Daniel Mandelbaum

CERTIFIED FAMILY MEDIATOR – JUSTICE INSTITUTE OF BRITISH COLUMBIA

I discovered that I was born to mediate and collaborate, as I was – and still am – the individual that my friends and family call on to resolve any conflicts that may arise.