Dividing Family Property in Alberta

What the Family Property Act Means for You

Dividing property after a separation or divorce can be one of the most stressful and complex parts of ending a relationship. Couples often wonder: Who keeps the house? What happens to my savings? Do I have to share my inheritance?

In Alberta, these questions are governed by the Family Property Act (FPA). Understanding how the law works can help you protect your rights, plan for the future, and reduce conflict during separation.

What Is the Family Property Act?

The Family Property Act (FPA) came into effect in January 2020, replacing the Matrimonial Property Act. The FPA applies to:

• Married spouses who are separating or divorcing.
• Adult interdependent partners (AIPs) — sometimes called common-law partners — who are ending their relationship.

The Act requires that family property be divided equitably (fairly) between the parties, but equitable does not always mean a 50/50 split. Courts can consider a range of factors when deciding what is fair in a given case.

Learn more: Divorce and Separation in Edmonton

What Counts as Family Property?

Under the FPA, “family property” includes most of what you and your spouse or partner own, whether jointly or individually. Common examples include:

• The family home, vacation property, or rental property.
• Bank accounts, investments, and pensions.
• Vehicles, furniture, and household goods.
• Business interests.

Even if an asset is in one person’s name, it may still be considered family property if it was acquired during the relationship.

Property That May Be Exempt

Not everything is automatically divided. Certain types of property may be exempt from division, including:

• Property owned before the marriage or cohabitation.
• Inheritances.
• Gifts from third parties (such as money from parents).
• Insurance proceeds or personal injury awards.

It’s important to note that any increase in the value of exempt property during the relationship may still be divisible. For example, if you owned a home before marriage but it increased in value while you were together, the growth in equity could be subject to division.

Learn more: Property Division in Edmonton

How Does the Court Decide What’s Fair?

When dividing family property, Alberta courts look at several factors, including:

• The contributions of each spouse or partner, both financial and non-financial.
• Whether one partner gave up career or educational opportunities to support the family.
• Any agreements the parties made (such as a prenuptial or postnuptial agreement).
• The duration of the relationship.
• The impact of any gifts, inheritances, or excluded property.

Because every family situation is unique, what is “fair” in one case may not be fair in another.

Related: Prenuptial and Postnuptial Agreements in Edmonton

What Happens If You Can’t Agree?

Many couples are able to negotiate a property division agreement through lawyers, mediation, or collaborative family law. This approach can save time, stress, and costs compared to litigation.

If you cannot agree, the court will divide property under the FPA. This process can be lengthy and expensive, which is why legal advice and early negotiation are strongly recommended.

Learn more: Collaborative Family Law in Edmonton

Final Thoughts

Dividing family property is rarely simple, especially when significant assets or debts are involved. Alberta’s Family Property Act sets the framework, but the outcome depends on the unique circumstances of your family.

Getting advice early can help you understand your rights, protect your assets, and reach a fair resolution.

Contact Cambria Law for Property Division Advice

If you are going through a separation or divorce and need guidance on dividing family property, the right legal advice is essential. At Cambria Law, Noori Sidhu and Renn Spence can help you negotiate fair agreements, protect exempt property, and advocate for your best interests under Alberta law.