When couples separate, most of the focus goes to the family home. But for many families in British Columbia, real estate goes far beyond that. Investment condos, rental properties, vacation cabins, or shared land can all fall under the umbrella of family property during a divorce.
These assets can be significant—and dividing them properly is key to protecting both financial fairness and peace of mind. Here’s how real estate beyond the family home is handled under BC law, and what steps you can take to make the process smoother.
Under the Family Law Act, almost everything you and your spouse acquired during your relationship is considered family property, regardless of whose name is on title. This includes:
Unless there’s a valid reason for exclusion, the law presumes each spouse is entitled to half the value of all family property at the time of separation.
Some properties may be considered excluded under BC law—usually if they were owned before the relationship began or received as a gift or inheritance. However, the increase in value of excluded property during the relationship is still divided equally.
Example: If your spouse owned a rental condo before you met and it gained $200,000 in value during your relationship, that $200,000 growth would generally be considered family property and shared 50/50.
For property division, values are typically based on fair market value at the date of separation. In practice, this often means:
Documentation is crucial—without clear evidence, the court may default to equal division or use less favorable estimates.
Rental real estate introduces extra layers of complexity. Income, expenses, and capital gains potential all factor into the property’s value. When dividing a rental, spouses can:
If a rental is sold, the capital gains tax on appreciation applies to each spouse’s portion. Coordination with an accountant is key to avoid tax surprises.
Vacation homes and secondary properties are also divided as family property unless excluded. The biggest consideration is often emotional—these places carry memories, but keeping them jointly after separation rarely works long term.
Common approaches include:
For pre-sale or investment projects, ownership may not yet be registered in your name. These are still family assets if purchased during the relationship. The court can divide the contractual rights or any profits realized on completion or assignment.
If deposits were paid jointly, the refundable amount (or equity earned) is shared equally unless one party proves they used excluded funds.
Not every property needs to be sold. If one spouse wishes to retain a particular asset, the other may receive a larger portion of savings, investments, or the family home to balance the division. These offsetting arrangements are common when multiple properties are involved.
They’re best structured through lawyers and financial advisors to ensure long-term fairness and tax efficiency.
Only the principal residence qualifies for the full capital gains exemption. For other properties, 50% of the profit from the sale is taxable. Coordinating the timing of sales and transfers can help minimize overall tax liability. Always involve an accountant familiar with real estate and divorce cases in BC.
If you and your spouse can’t agree on how to divide real estate assets, the BC Supreme Court can make orders for sale or transfer under the Family Law Act. Judges prefer negotiated solutions but can enforce fair division when needed, including appointing a realtor to sell investment or recreational properties.
Dividing real estate in a BC divorce goes far beyond the family home. Every property—rental, investment, or vacation—is subject to the same fairness principles under the Family Law Act. With good records, professional guidance, and clear communication, you can reach a resolution that’s both equitable and efficient.
At Mansour Real Estate Group, we’ve helped clients across Surrey, Langley, Delta, White Rock, and Abbotsford navigate complex property divisions with clarity and care. Reach out for a confidential consultation to discuss your real estate assets and next steps.
The Mansour Real Estate Group, led by Mohamed Mansour, MBA and Associate Broker, is one of the Top 1% real estate teams in the Fraser Valley and a trusted authority in divorce, estate, and family property sales. With over 20 years of experience and more than $750 million in transactions, we deliver exceptional results with professionalism and compassion across Surrey, Langley, Delta, White Rock, and Abbotsford.
Address 15595 24 Avenue, Surrey, BC, V4P 1H5
