Dividing Your Property Equally and Calculating an Equalization Payment
Dividing your property equally
When couples separate, one of the biggest questions is: “Who keeps what, and how do we make things fair?”
In British Columbia, property division is guided by the Family Law Act, which says that most property and debt acquired during the relationship should be shared equally, even if it’s only in one person’s name.
But instead of physically splitting every asset 50/50, the law allows couples to balance things out with a single equalization payment, which is a one-time payout from one spouse to the other to balance out the distribution.
What is an Equalization Payment?
An equalization payment is a financial amount that one spouse pays to the other to make sure each person leaves the relationship with a fair share of the net family property.
It's based on a simple principle:
Rather than dividing each item, tally up the total value of all family property and debt, and equalize the difference with a single payout. It's clean, efficient, and the most common way to deal with property distributions.
Parties initially think of it as a lot of smaller bargains.
I'll keep my car, you keep yours
Let's balance the bank accounts
I'll pay you $100,000 for the house
But when you include all the property and debt in the Equalization Payment calculation, it gives you each a bit more leverage and wiggle room to distribute things efficiently and strategically.
The general approach Divii uses to calculate the Equalization Payment
The following steps show how your Equalization Payment is calculated in Divii:
List all Family Property.
Subtract out any Exclusions.
Specify who will keep what or if you'll sell or co-own any property.
Divii will calculate the payout to equalize the overall distribution of property.
Why this approach works
This approach works because you don’t need to divide every single asset; you can make personalized decisions (e.g., one keeps the car, the other gets more in savings); it supports cleaner, faster agreements, and it's aligned with BC Family Law and how lawyers and courts typically resolve property division.
Divii handles all the heavy lifting behind the scenes and gives you full transparency into how the numbers are calculated.
It's always important to review your calculations and your financial goals with your lawyer to make sure you understand your rights and ensure a fair division of property during separation.
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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.