Dividing the Family Residence During Your Separation
What Is the family residence?
The family residence refers to the primary home where the couple lived together during their relationship. It can include a house, a condo, a townhouse, a mobile home etc.
The family residence is often one of the most important and valuable assets to consider during a separation. In British Columbia, the division of the family residence depends on whether one spouse owned the property prior to the beginning of the relationship or whether it was acquired by one or both spouses during the relationship.
How is the family residence divided?
In most cases, the value of the family residence is divided equally between spouses. However, if one spouse owned the home before the relationship began, the division process is different:
The initial value of the home at the start of the relationship is considered excluded property. This means that the owner keeps that portion of the home’s value, and it is not subject to division.
Any increase in the home’s value during the relationship is considered family property and is divided equally between the spouses.
For example: If a house was worth $500,000 at the start of the relationship and is worth $800,000 at separation, the $300,000 increase in value would be divided equally between the spouses. The original $500,000 would remain with the spouse who owned the house before the relationship.
This approach ensures that both parties share in the growth of the family residence during the relationship, while recognizing the original ownership of the property.
Selling the family residence
In many cases, spouses agree to sell the family home and split the proceeds. This can make it easier to divide the value fairly and allow both spouses to move on with their lives.
However, there are other options:
One spouse may buy out the other’s share of the home.
Both spouses may agree to keep the home for a period of time, especially if children are involved and stability is important.
Exclusive occupation
In some cases, one spouse may be granted exclusive occupation of the family residence, meaning they can live in the home while the other spouse must leave. This is typically a temporary arrangement and is often made when it is in the best interest of the children or if there are safety concerns.
When dealing with the family residence, it’s important to:
Determine the current market value of the home.
Understand any outstanding debts on the property, such as a mortgage.
Consider the costs of maintaining the home, including property taxes, utilities, and upkeep.
If you are unsure about your options for the family residence, it’s a good idea to speak with a family lawyer to understand your rights and responsibilities.
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Important Disclaimer
Content and videos in The Divii Knowledge Centre provide general information about separation and divorce and is not and should not be considered legal advice. For guidance specific to your situation, it's important to consult with a qualified family lawyer in your area. It's always highly recommended to seek independent legal advice during your separation.