Division of Property

Division of Property in Alberta: Your Guide to a Fair Resolution

When a marriage or adult interdependent relationship ends, dividing property can be one of the most complex and emotionally charged parts of the separation process. In Alberta, the Family Property Act governs how assets and debts are divided, aiming for fairness based on each person’s contributions and circumstances—not just a simple 50/50 split.

What Property Is Divided and What May Be Exempt

In general, all property acquired by either spouse during the relationship is considered family property and is subject to division. This includes real estate, vehicles, savings, pensions, investments, household items, and shared debts. However, not all property is treated equally.

Some assets may be classified as exempt property, such as:

• Gifts received from third parties

• Inheritances

• Property owned before the relationship began

While the original value of these exempt assets may be protected, any increase in value during the relationship is often considered divisible. For example, if a home owned before marriage rises significantly in value, that increase may be shared between both spouses.

Valuing Property for Division

In Alberta, assets and debts are typically valued as of the date of separation or another date set by the court. Accurate valuations are essential, especially for complex or high-value property such as businesses, pensions, or investment portfolios. In many cases, a professional appraisal is needed to determine fair market value. Both parties are legally required to make full financial disclosure, and failure to do so can have serious legal consequences.

Division of Debts

Just like assets, debts accumulated during the marriage or partnership are also subject to division. These may include:

• Mortgages

• Personal loans

• Credit card balances

• Lines of credit

Alberta courts will consider who incurred the debt, how it was used, and each party’s ability to repay when determining how debts should be allocated. Debts brought into the relationship by one spouse typically remain their personal responsibility, unless the other party explicitly assumed liability.

Legal Agreements and Their Impact on Property Division

Spouses or partners who entered into a prenuptial agreement, marriage contract, or cohabitation agreement before or during their relationship may already have a roadmap for how property is to be divided. In Alberta, these agreements are generally enforceable—provided they meet key legal requirements, such as:

• Independent legal advice for both parties

• Voluntary and informed consent

• Fair and reasonable terms at the time of signing

If these criteria are not met, the court may set the agreement aside.

What Happens If One Spouse Hides Assets?

Full and honest financial disclosure is required under Alberta law. If one party attempts to conceal assets or misrepresent their value, the court can impose severe penalties, including:

• Awarding a greater share of the property to the other spouse

• Reopening final property division orders

• Ordering costs or legal sanctions

Intentional non-disclosure undermines the fairness of the process and will not be tolerated by the courts.

Disputes and Resolution Options

If spouses cannot reach a mutual agreement on how to divide their property, there are several resolution options available. Many families benefit from mediation, collaborative law, or arbitration to avoid the cost and stress of litigation. However, if no resolution is reached, either party can apply to the Alberta Court of Justice or Court of King’s Bench to obtain a binding property division order.

The court’s decision will be guided by the Family Property Act, and aim for an outcome that considers the financial positions, contributions, and needs of each party.

Division of Pensions and Retirement Plans

In Alberta, pensions earned during the course of a marriage or interdependent relationship are typically considered matrimonial property. This includes:

• Employer-sponsored pensions

• RRSPs and other retirement savings

Pension division can be complex and is often governed by specific legislation such as the Pension Benefits Division Act. Accurate valuation is key, and professional financial advice is often necessary to ensure a fair and legally sound division.

Property Rights for Adult Interdependent Partners

While married couples are automatically covered by the Family Property Act, adult interdependent partners (common-law couples) may face a different legal process. Although recent legal reforms in Alberta have expanded property rights for these partners, they may need to rely on legal doctrines such as unjust enrichment or constructive trust to claim a share of property acquired during the relationship. Legal guidance is essential in these cases to determine whether property claims are valid and enforceable.

Rights to the Matrimonial Home

In Alberta, both spouses have the legal right to remain in the matrimonial home during the division process, regardless of whose name is on the title or lease. If conflict arises, either party can seek a court order for exclusive possession, particularly when children’s best interests or safety concerns are involved. These decisions are made based on fairness and the specific needs of each family.

When Is ADR Required?

In Alberta, ADR is not only encouraged but often required before a family law case can proceed to trial. Courts may mandate participation in programs such as Parenting After Separation or require parties to attempt mediation or other forms of dispute resolution for parenting and financial matters. These efforts aim to reduce conflict and promote quicker, less costly resolutions.

Legal Effect and Enforcement of ADR Agreements

Agreements reached through ADR can be legally binding when properly documented. It’s crucial to have any settlement reviewed by a qualified family lawyer to ensure compliance with Alberta law and to protect your legal rights. Once formalized, these agreements can be submitted to the court and enforced like any other legal order.

Is ADR Right for Every Situation?

While ADR can resolve most family law issues effectively, it may not be suitable in every case. Situations involving domestic violence, significant power imbalances, or unwillingness to participate in good faith may require court intervention to ensure a fair and safe process.

The Importance of Legal Guidance

Although legal representation is not mandatory in ADR, having a lawyer by your side is strongly recommended. An experienced family lawyer can offer critical advice, help you prepare, and ensure any agreement reflects your best interests—whether you are engaging in mediation, arbitration, or collaborative law.

Get Professional Support with Property Division

Dividing family property is rarely straightforward—but you don’t have to go through it alone. At 587LAWYERS, we are committed to helping clients understand their legal rights and options under Alberta’s property division laws. Whether you’re facing a simple separation or a complex financial situation, our experienced family law team is here to advocate for your interests and ensure a just outcome.

Contact us today to schedule a consultation and take the next step with confidence.