In British Columbia, vehicles are considered property and are included in the overall division of assets in a Separation Agreement.

Under the Family Law Act, vehicles acquired during the relationship are generally treated as family property and are subject to division, regardless of whose name is on the registration.

In practice, however, vehicles are usually handled in a practical and straightforward way. Most couples agree that each person keeps the vehicle they primarily use. If a vehicle is registered in one person’s name and that person relies on it for work or daily transportation, they typically retain it.

Even though the vehicle may remain with one person, its value is still included in the overall calculation of family property.

Vehicles must be assigned a fair market value for the purposes of property division.

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.

In some cases, spouses may agree to use the date of separation, particularly if they divided their finances at that time and have been operating independently since.

Vehicle values are typically determined using:

• Online market comparisons
• Canadian Black Book values
• Dealership appraisals
• Professional appraisals for specialty or high-value vehicles

Any loans secured against the vehicle must also be considered. The net value, meaning the market value minus any outstanding loan balance, is what is included in the overall property division. Typically you will enter the car loan in the Liabilities section.

Although vehicles are included in the property calculation, they are rarely physically divided or sold unless necessary.

Most commonly:

• Each person keeps the vehicle they primarily use
• The registered owner retains the vehicle
• The net value of the vehicle is included in the equalization calculation

This approach avoids unnecessary disruption and allows both parties to maintain transportation after separation.

Because property is generally divided equally under the Family Law Act, differences in vehicle value are addressed through the broader equalization process.

For example, if one spouse keeps a vehicle worth $40,000 and the other keeps a vehicle worth $10,000, the $30,000 difference is accounted for in the overall division of assets.

This may be balanced by:

• Adjusting the division of other property
• Increasing or decreasing an equalization payment
• Allocating additional assets to the spouse receiving the lower-value vehicle

The goal is not to make the vehicles equal, but to ensure the overall property division is equal.

Vehicles purchased during the relationship are considered family property and must be included in the division.

Vehicles purchased before the relationship began may qualify as excluded property under the Family Law Act. Any increase in value during the relationship would normally be family property and subject to division. In practice, most vehicles decrease in value over time. If the vehicle has depreciated, the excluded amount cannot exceed the vehicle’s current value.

For example, if a vehicle was worth $20,000 when the relationship began but is worth $8,000 at separation, the maximum excluded amount is $8,000. There is no additional family property portion if the vehicle has simply lost value.

If a vehicle is jointly registered, the Separation Agreement should clearly set out how it will be handled.

Common options include:

• One spouse buying out the other’s share
• Refinancing any associated loan into one person’s name
• Selling the vehicle and dividing the net proceeds

Clear instructions in the Separation Agreement help ensure that ownership transfers are completed properly and that insurance and loan obligations are addressed.

Vehicles may seem straightforward, but unclear agreements can lead to issues with loan responsibility, insurance coverage, or registration transfers.

Your Separation Agreement should clearly state:

• Who will keep each vehicle
• The agreed value
• Any outstanding loan balance
• How ownership and insurance will be transferred

Clear drafting ensures that the division complies with the Family Law Act and prevents misunderstandings later.

While dividing vehicles is often simpler than dividing pensions or businesses, it is still important that the value and treatment of each vehicle fits properly into the overall property division.

Speaking with a family lawyer can help ensure that all assets are properly valued, that excluded property is correctly identified, and that your Separation Agreement reflects a fair and legally sound resolution.

Careful planning now allows both parties to move forward with clarity and financial confidence.