In British Columbia, the Family Law Act governs how property will be divided in the event of a separation. The rules of family property division apply equally to married and unmarried couples who have resided together for 2 years or longer.
The Family Law Act of BC says after you have resided with your partner for 2 years, everything you acquire is considered family property and will be shared equally if you later separate. If your partner incurs debt, you are equally responsible for that, too. In addition, any increase in value in any property you brought into the relationship will be equally shared in the event you separate.
However, you can opt out of these provisions of the Family Law Act and make your own rules about how property will be divided in the event of a separation. That’s what Cohabitation and Marriage Agreements are all about.
Make your own rules. Make a renewable contract or one that expires after a certain length of time.
If you are bringing assets into a relationship, or if your partner might incur debt for which you do not want to be responsible, you should consider a cohabitation or marriage agreement.
Come in to talk to us about your options.
An ounce of prevention is worth a pound of cure.