Separation after many years together involves more than deciding who remains in the family home. After 20, 30, or 40 years, you may need to address pensions, investments, business interests, debts, and spousal support, while also assessing your current financial situation. A family lawyer in New Westminster can help you determine what assets may be divided, safeguard your interests, and make informed decisions before signing any agreements.
Often, one spouse has greater knowledge or control over finances. Engaging a family lawyer can help protect your interests during the complex process of dividing assets accumulated over a long-term relationship.
This post outlines when and how to take steps to protect your assets during separation after a long-term relationship.
Are You Legally Considered Spouses in British Columbia?
When it comes to property, rights are not limited to legally married couples. Under B.C.’s Family Law Act, there are multiple definitions of a spouse to consider.
- Legally married couples.
- Common-Law: A couple living continuously in a “marriage-like” relationship for at least two years.
- Or a former spouse.
Each case is unique; not every cohabitation qualifies as a “marriage-like” relationship, and your spousal status can impact property division, pensions, and spousal support. These rules and definitions are found in Section 3 of B.C.’s current Family Law Act.
What Happens to Your Assets When You Separate?
Spouses are generally equally entitled to family property and equally responsible for family debt. Division 2, Subsection (2): lists what is considered family property to avoid any confusion.
This includes, but is not limited to:
Businesses: Shares in a corporation or interests in partnerships and ventures.
Money owed to you: Things like tax refunds or money someone owes you for goods or services.
Bank Accounts: Any money in a financial institution.
Retirement Funds: Pensions, RRSPs, annuities, and other income plans.
Controlled Assets: Property that you technically gave away or transferred after the relationship started, but you still have the power to control, use, or demand back.
Certain properties are excluded, such as those acquired before the relationship, inheritances, and third-party gifts. If one spouse says a property is excluded, they must provide proof that falls into one of these categories. Any increase in the value of an excluded property during a relationship or since its acquisition is split equally by default.
Equal division of family property is the default, but this may change based on agreements or specific court orders based on fairness.
How Can a Family Lawyer in New Westminster Help Protect Your Assets?
Build a Complete Financial Picture
The first and most important step is to gather information about you and your spouse, including:
- Assets and debts.
- Income and employment.
- Pensions and investments.
- Real estate.
- Corporate or partnership interests.
- Trusts and other beneficial interests.
Having complete and accurate information streamlines the legal process and helps identify any missing details.
Determine What Family or Excluded Property is
A lawyer can review how and when property was acquired, trace inheritances or premarital assets, and identify records needed to support exclusions.
Obtain Financial Disclosure and Valuations
Financial disclosure is the most important thing in Family Law. Especially if one spouse managed the finances. Financial disclosure is always necessary to understand the full financial picture. Businesses, real estate, and pensions may also require professional valuation.
Negotiate a Workable Settlement
A lawyer can help negotiate a separation agreement that addresses property, debt, support, and other financial obligations, often avoiding the need for trial.
When Should You Contact a Family Lawyer?
Under the Family Law Act, property and spousal support claims generally must be started within 2 years of a divorce order for married spouses or within 2 years of separation for unmarried spouses. Post-separation dissipation of assets is also common, so the earlier you contact a family lawyer, the better.
At Cassady Law, we suggest that you obtain proper legal advice as soon as possible when:
- You are considering or preparing for separation.
- You do not understand the family finances.
- Your spouse controls important accounts or records.
- A business, pension, trust or significant real estate is involved.
- You believe property may be sold or transferred.
- You have been asked to sign an agreement.
- You need immediate financial or personal protection.
Separation after a long-term relationship can impact the property and financial security you have built over decades. Knowing what you own, what may be divided, and whether immediate protection is needed helps you make informed decisions.
If you are considering separation, Cassady Law can help you understand your financial position and legal options. Consult a family lawyer in New Westminster before transferring property, accepting a settlement, or signing a separation agreement.