Excluded property is the property that a spouse brings into a relationship and inheritances or gifts received by one spouse during the relationship.
In B.C., the rules about the division of family property apply to both married couples and unmarried couples who have been living together in a marriage-like relationship for at least two years.
It is typically not divided at the end of the relationship; however, the increase in value during the relationship is considered family property which means it can be divided equally at the end of the relationship. For example, say you owned a house worth $1,000,000 when your spouse moved in, helped pay the mortgage, and the housing market went up. As a result, the value of the house had increased to $1,500,000. If you were to separate, you would keep the original $1,000,000 and you and your spouse would split the extra $500,000 of the increased equity.
The matter becomes further complicated if the said property is mingled with family property or used for a family purpose. Some assets acquired during the relationship, such as gifts and inheritances to one spouse, enjoy the same protection.
A well drafted agreement will protect you and ensure that your excluded property remains yours in the event of a separation.
Contact one of our Personal Lawyers to learn more.