If you have received inheritance or a significant gift from a family member, the Family Law Act already provides some protection for these as they are considered “excluded property” and not divided on separation.
Section 85 of the Family Law Act, has a list of property that is excluded from family property and includes:
a) Property acquired by one of the spouses before the relationship began
b) Inheritances
c) Gifts to a spouse from a third party or family party
d) A settlement or an award of damages to a spouse for compensation for injury (unless it is awarded for income loss)
e) Money paid under an insurance policy (unless it is awarded for income loss)
f) Any of the property above that is held in trust for a spouse
g) A spouse’s beneficial interest in property held in a discretionary trust
h) Property derived from the disposition of the above property.
Although these items are not considered family property, the increase in value in any of these is considered family property that must be divided equally. The spouse who claims property is excluded has the onus of proving with documentary evidence that the property is excluded. Apna Law’s Vancouver and Burnaby family lawyers are well versed in the law that applies to excluded property and will work to protect your property.