Dividing Property when You Can’t Agree
June 19, 2015 by West Coast ADR
Some divorces in British Columbia go very well. The two parties sit down and hammer out an agreement about how property should be split up—one person takes the house, the other takes the car, the bank accounts are split down the middle. Other times, though, people can’t come to any fair agreement on their own.
That is why the property division case may need to go to arbitration.
The problem with splitting things up on your own is that you both may want an outcome that favours you. People are naturally competitive, and you may feel you deserve it. The goal of the court, though, is to make sure that things are actually divided equally. There are creative ways to do this.
The easiest way is just to split cash down the middle, sell everything that can’t be divided, and split up any money that’s gained in the sale. If the house sells for $300,000, you both get $150,000 and go on your way—unless the mortgage must be paid first.
Other times, things can be moved around so that the amounts are equal. For example, if there is a bank account with $400,000 in it, it would usually be split with $200,000 for each side. However, if you want to keep the house and your spouse doesn’t, you may be able to get the entire home if you only take $50,000 from the bank account, essentially buying your spouse out with the other $150,000.
The whole process can get pretty complicated, and there may be many legal battles along the way, so be sure you understand your rights.
Source: Financial Consumer Agency of Canada, “Sharing your property and debt after your relationship ends,” accessed June 19, 2015
Some divorces in British Columbia go very well. The two parties sit down and hammer out an agreement about how property should be split up—one person takes the house, the other takes the car, the bank accounts are split down the middle. Other times, though, people can’t come to any fair agreement on their own.
That is why the property division case may need to go to arbitration.
The problem with splitting things up on your own is that you both may want an outcome that favours you. People are naturally competitive, and you may feel you deserve it. The goal of the court, though, is to make sure that things are actually divided equally. There are creative ways to do this.
The easiest way is just to split cash down the middle, sell everything that can’t be divided, and split up any money that’s gained in the sale. If the house sells for $300,000, you both get $150,000 and go on your way—unless the mortgage must be paid first.
Other times, things can be moved around so that the amounts are equal. For example, if there is a bank account with $400,000 in it, it would usually be split with $200,000 for each side. However, if you want to keep the house and your spouse doesn’t, you may be able to get the entire home if you only take $50,000 from the bank account, essentially buying your spouse out with the other $150,000.
The whole process can get pretty complicated, and there may be many legal battles along the way, so be sure you understand your rights.
Source: Financial Consumer Agency of Canada, “Sharing your property and debt after your relationship ends,” accessed June 19, 2015