In a typical Separation Agreement in British Columbia, financial accounts such as chequing accounts, savings accounts, and non-registered investment accounts are handled in a way that balances fairness with practicality.

Rather than physically splitting every account, the usual approach is for each spouse to keep their own accounts, while the value of those accounts is included in the overall division of family property. This allows each person to maintain control over their finances while still achieving a fair and balanced result.

One of the most important and often misunderstood issues is when financial accounts are valued.

Under the Family Law Act, the default rule is that property is valued as of the date the Separation Agreement is made, unless the spouses agree otherwise. This means that technically, account balances could continue to fluctuate between the date of separation and the date you sign your agreement.

However, in many real-life separations, spouses informally divide their operating accounts shortly after separation. They may:

• Split joint accounts
• Close joint credit cards
• Begin paying child or spousal support
• Start managing their own income and expenses separately

In those situations, it is often reasonable and practical to agree to use an earlier valuation date that reflects when you effectively divided your day-to-day finances.

Once you have fairly divided your accounts and have a support plan in place, the income and savings accumulated after that point are generally not shared. At that stage, you are operating financially independent of one another.

The key principle is fairness. The valuation date should align with when your financial partnership truly ended but also when there is a reasonable support plan in place.

Under the Family Law Act, money accumulated in financial accounts during the relationship is considered family property and is subject to division.

This includes:

• Chequing accounts
• Savings accounts
• High-interest savings accounts
• Non-registered investment accounts

It does not matter whose name is on the account. If the funds were earned or accumulated during the relationship, they are generally considered shared property.

Some funds may qualify as excluded property under the Family Law Act. This can include:

• Money owned before the relationship began
• Inheritances received by one spouse
• Gifts given specifically to one spouse

To remain excluded, the funds must be traceable to their original source. Clear documentation is important.

It is also important to understand that while the original excluded amount may remain excluded, any growth on that amount during the relationship is generally considered family property and is shared.

In most cases, spouses do not physically split individual bank accounts dollar for dollar.

Instead, each spouse keeps their own accounts, and the balances are included in the overall property calculation. If one spouse has significantly more money in their accounts, that difference is addressed through the division of other assets or through an equalization payment.

This approach avoids unnecessary account closures or transfers while still ensuring an equal overall division.

Joint accounts are usually divided equally unless the spouses agree otherwise. Your Separation Agreement should clearly specify whether joint accounts will be:

• Divided and closed
• Maintained temporarily for shared expenses
• Allocated to one spouse with an equalization adjustment

Clear instructions reduce the risk of confusion, disputes, or unexpected withdrawals.

Financial accounts can seem simple, but unclear timing or incomplete disclosure can create significant problems later.

Clearly addressing:

Although dividing financial accounts is often more straightforward than dividing pensions or businesses, valuation timing and exclusions can become complicated.

Speaking with a family lawyer can help ensure that the Family Law Act is applied correctly and that your Separation Agreement reflects a fair and workable resolution.

Clear planning now allows both spouses to move forward with financial independence and confidence.