Claiming Assets after Separation in BC: What You Need to Know

When a relationship comes to an end, whether due to divorce or separation, the emotional impact is often intensified by the legal challenges involved in dividing property and debt. In British Columbia, the Family Law Act governs how assets are divided, and it is crucial to understand the time limits involved. If you miss these court deadlines called limitation periods,  you may lose your rights to claim a division of assets.

Understanding Separation in BC

In BC, “separation” occurs when one or both partners decide the relationship is over, communicate that decision and begin living as though the relationship has ended. This applies to both married couples and common-law partners.

Whether you are in Burnaby, Coquitlam or Port Coquitlam, Surrey,  West Vancouver, or anywhere else in Metro Vancouver, it is essential to understand your legal status, whether you are married or in a common-law relationship, because it affects your timeline for claiming assets.

Time Limits for Claiming Assets after Separation

Under Section 198(2) of BC’s Family Law Act, the limitation period for starting legal proceedings to divide property and debt is two years. The starting point for this two year window differs depending on your relationship type:

• Married spouses: You must commence legal action within two years of the date your divorce is granted or the date your marriage is annulled by court order.

• Common-law spouses: You must file a claim within two years of the date of separation.

If you fail to act within these timeframes, your claim can be “statute barred”.  This means you lose the legal right to pursue your claim forever.

What Counts as Family Property?

Family property includes all assets acquired during the relationship regardless of whose name is on the title document or ownership document. This can include:

• the family home;

• RRSPs and pensions;

• bank accounts and investments;

• insurance policies;

• business interests; and, 

• the increase in value of excluded property such as a home owned before the relationship began.

Even companion animals are now considered family property under recent amendments to the Family Law Act.

What Is Excluded Property?

Excluded property typically includes:

• assets owned before the relationship began;

• gifts or inheritances received during the relationship;

• certain personal injury settlements or insurance payouts.

However, any increase in value of excluded property during the relationship is considered family property and is subject to equal division.

Why Acting Quickly Matters

If you delay in initiating a claim, it can have serious consequences. If you file a Notice of Family Claim after the limitation period has expired, your former spouse can argue that your claim is statute barred. Courts are generally strict about these deadlines and exceptions are rare.

If you are unsure about your separation date or whether you are still within the legal window to claim assets, it is best to consult a qualified family lawyer immediately.

Serving Metro Vancouver with Trusted Legal Guidance

Ms. Little, a New Westminster divorce lawyer in British Columbia and her team assist clients throughout Metro Vancouver, including the Tri-Cities,  Richmond, Surrey, Langley, Abbotsford, North Vancouver and West Vancouver.  Whether you are navigating a legal separation, preparing for divorce separation, or need help understanding your rights, Valerie is able to guide you every step of the way.

Take the Next Step

If you have recently separated or are considering it, do not wait to get legal advice.  Protect your financial future by speaking with a family lawyer in British Columbia who understands the nuances of BC’s Family Law Act and can help you act within the legal time limits.

Contact us Valerie to schedule a consultation and ensure your rights are preserved. She also serves Port Moody, Coquitlam,  Port Coquitlam Maple Ridge, Pitt Meadows, Aldergrove,  Vancouver, White Rock, Delta, and Ladner.