When a long-term relationship ends, the emotional impact is immediate, but the financial consequences can extend for years.
Whether a couple is married or living common law, separation typically triggers the formal division of assets. And it’s a process many people find stressful and confusing.
To clarify how asset division works under British Columbia law – and how couples can be proactive about planning for it – Genus Portfolio Manager Grant Conroy recently hosted a webinar with divorce lawyer Eli Walker, Partner at Daykin Walker Kaderly Wahid.
Together they explored how assets are treated in a separation, where common pitfalls arise and how a bit of planning can help reduce financial uncertainty.
Understanding the financial impact of divorce and asset division
One of the most underestimated aspects of separation is just how quickly professional fees and related costs can add up.
An uncontested divorce in Canada – where both partners agree on the terms – typically costs between $1,500 and $3,000. But costs rise significantly when there are disagreements over property, custody or finances. A contested divorce can run $15,000 to $35,000, and in particularly litigious or complex cases, legal fees can exceed $100,000.
If a case goes to trial, the financial impact escalates even further. A family-law trial of up to two days typically costs around $20,000, while a five-day trial averages $45,000 – before factoring in expert reports, valuations or forensic accounting. For many couples, these costs come directly out of the wealth they’re trying to protect.
Beyond legal fees, breakups often trigger a cascade of additional financial consequences:
- Real estate costs, including selling or refinancing the family home
- Starting over expenses, such as securing and furnishing separate households
- Valuation and forensic accounting costs for complex assets like businesses, trusts or international holdings
- Retirement and tax implications, particularly when dividing pensions, RRSPs or taxable investments
- Capital gains and disposition costs, which can further reduce what each person ultimately retains
At a time when emotions are already running high, these financial pressures can add strain – making clarity and preparation all the more valuable
How property law works in BC
Understanding how family property law works, which assets are included and excluded, and how value is determined can affect the decision you make about managing financial risk during a relationship transition.
Property law varies across Canada, but in BC both married and common-law couples are treated the same when dividing property. In most cases, as Walker explains, “the starting presumption is that assets existing at the date of separation get divided 50/50.” This includes real estate, investment accounts, pensions, businesses – and even debt.
However, not everything is shared. BC law recognizes excluded property, which Walker summarizes as “pre-existing wealth, a gift or inheritance that a spouse received from a third party, and beneficial interests in trust.”
Excluded property is not split between partners. But two caveats are important here:
- Generally only the original value is excluded – meaning any growth during the relationship is shared.
- And, you must be able to trace the exclusion – to “show the movement of that exclusion’s value from what you had at the beginning of the marriage through to whatever assets exist today,” Walker says.
In practice, this means record-keeping and early planning can have a lasting impact on how much wealth each person ultimately retains. The challenge, Walker says, is that “not many people in long-term relationships have paper records going back far enough to prove value and tracing.” And without that proof, legitimate exclusions can be lost if their value can’t be traced.
How assets are valued in a divorce or separation
Once you know what counts as family property, the next step is figuring out what those assets are worth.
In BC it’s typically based on fair market value, but some assets, such as private businesses, intellectual property and trusts often require expert valuations.
In many cases, the cost of these valuations is shared by both parties or paid from family property, though this can vary depending on the circumstances and level of dispute. In less contentious situations, couples may jointly retain a single expert, while more complex cases may involve competing valuations.
Another surprise for many couples is that, in most cases, assets are not valued as of the separation date. As Walker explained, “the valuation date is the date you actually settle your case, or the date you go to trial.”
This means both partners share in market gains and losses after the breakup.
Using a prenup to protect your assets
Prenuptial agreements, also known as marriage or cohabitation agreements, allow couples to establish in advance how property and debt will be handled if the relationship ends.
Beyond their legal function, they can also open the door to important financial conversations many people tend to avoid. As Conroy notes, having a pre-agreed roadmap can help reduce uncertainty and emotional strain, particularly when children are involved.
Walker emphasizes that how the conversation is framed matters greatly, as many people become defensive as soon as the idea is introduced. “When the focus is fairness rather than mistrust, these agreements are far more constructive,” he says. After all, Conroy adds, “You don’t want to alienate your partner from the get-go.”
For couples who are already married, post-nuptial agreements are also possible, though they require an even more careful and conservative approach “to hold up in court,” Walker says.
At the end of the day, relationship transitions are rarely easy, but clarity, preparation and the right professional guidance can significantly reduce financial uncertainty. Understanding how family property law works, how assets are valued and where risks commonly arise allows you to approach this process with a measure of confidence.
For more in-depth insights, watch the full recording of the webinar. To discuss your family’s wealth planning needs in the context of your personal situation, reach out to a Genus advisor.
This document is provided for general information purposes only and is not a substitute for professional advice. It does not constitute investment, legal, accounting, tax, or other advice or recommendations, nor should it be relied upon as the basis for any decision. Readers should seek specific professional guidance before making financial or investment decisions. Certain information herein is based on third-party sources believed to be reliable, but its accuracy and completeness are not guaranteed. Past performance is not a guarantee of future results.
References:
Liew, C. (2025, May 8). How much does divorce in Canada really cost? BNN Bloomberg. https://www.bnnbloomberg.ca/investing/2025/05/08/divorce-in-canada-how-much-does-it-really-cost/
- How much does a family lawyer cost in Canada? (2023, June 22). Lexpert. https://www.lexpert.ca/news/legal-faq/how-much-does-a-family-lawyer-cost-in-canada/377018
