Who Gets What: How Property Is Divided After Separation in Alberta

When a relationship ends, one of the biggest questions is: who gets what? Many people assume that separation means splitting everything 50/50. While that can be a starting point, it’s not necessarily how things always end up.

In Alberta, the Family Property Act sets out how assets and debts are divided for both married spouses and Adult Interdependent Partners (AIPs). The goal is fairness, but fairness can look different depending on your situation. Understanding how property is categorized, valued, and divided can help you protect your interests as you move forward.

What Counts as “Family Property”?

“Family property” includes almost anything of value that either partner acquired during the relationship. This covers both assets and debts. Common examples include:

• The family home and any other real estate

• Bank accounts, savings, and investments

• RRSPs, TFSAs, and pensions

• Vehicles and household contents

• Businesses or shares in corporations

• Credit cards, lines of credit, and loans

In other words, if it has financial value and was acquired while you were together, it likely counts as family property.

The Default Rule: Equal Division?

Under the Family Property Act, the presumption is that both parties share equally in the value of family property acquired during the relatioship. That means your total assets (minus your debts) are added up and divided so that each person walks away with roughly half the net value. In this, both parties share in the wins and the losses incurred during the relationship.

However, equal doesn’t necessarily mean identical. One person might keep the family home while the other receives investments of similar value. What matters is that the overall division is fair and balanced.

In some cases, the court can order an unequal division if an equal split would be unfair. For example, if one person hid or wasted assets, or if the relationship was short and the financial lives of the parties were not deeply intertwined.

What About Property You Owned Before the Relationship?

Not everything is automatically divided. Certain types of property are considered exempt under Alberta law.

Exempt property includes:

• Assets you owned before marriage or before becoming Adult Interdependent Partners

• Gifts or inheritances you received from someone other than your partner

• Personal injury settlements (for non-income losses) or insurance proceeds

However, only the value of the exemption at the time you received it is protected. Any increase in value during the relationship, such as the growth of an investment or the appreciation of a house purchased with inherited funds, may be considered family property to be divided.

It’s important to keep good records. If exempt funds are mixed with joint property (for example, if you use your inheritance to renovate the family home), it can become difficult or impossible to prove what portion should remain yours alone.

How Property Is Valued

Before division can occur, property must be valued. Typically, this is done as of the date the parties separate or the date an agreement is reached.

Valuation often involves:

• Appraisals for homes or land

• Account statements for bank and investment accounts

• Actuarial reports for pensions

• Business valuations by experts

Full financial disclosure from both parties is essential. Without it, neither side can properly assess what’s fair. Failing to disclose assets can lead to court sanctions or the agreement being set aside later.

Unequal Division and Special Circumstances

While equal sharing of family property is the norm, courts can depart from it when fairness requires.

Examples include:

• One partner deliberately depleting assets or transferring property to avoid division

• A very short relationship where the financial interdependence was minimal

• Cases where one partner made significant financial or property contributions before the relationship began, such as owning a home or business prior to the relationship, may justify an unequal division to recognize that pre-existing interest

In these situations, a judge may adjust the division to account for those factors.

Protecting Your Property Interests

If you’re entering a relationship or anticipating separation, there are practical steps you can take to protect your assets:

• Keep documentation proving what you owned before the relationship began.

• Maintain separate accounts for any gifts or inheritances you receive.

• Avoid using exempt funds for joint expenses unless you’re comfortable sharing their value later.

• Consider a cohabitation or marriage agreement. These agreements, if properly drafted with independent legal advice, can clearly outline how property will be divided if the relationship ends.

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Final Thoughts

Property division after separation can be one of the most complicated and emotional parts of the process. Alberta law aims for fairness, but fairness depends on your unique facts: what you each brought into the relationship, what you built together, and how your finances are intertwined.

If you’re unsure how your assets or debts will be treated, speaking with a family lawyer early can help you plan strategically and avoid costly mistakes.

At Stokes Law, we help clients navigate every stage of property division. From identifying and valuing asset, to negotiating fair settlements, our goal is to help you move forward with clarity and confidence.

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