When a long-term relationship ends, dividing property can be one of the most complicated parts of separation. After years of building a life together, couples often share a home, investments, retirement savings, debts, and other financial responsibilities.
Figuring out who is entitled to what can be difficult, especially when one partner earned more income than the other or the couple was never legally married.
In Alberta, property division after long-term relationships depends on several factors, including the couple’s legal relationship status, the assets acquired during the relationship, and any existing agreements.
How Property Division Works in Alberta
In Alberta, the Family Property Act outlines how property is divided when married spouses or qualifying adult interdependent partners separate.
Property acquired during the marriage or qualifying relationship of interdependence is generally divided equally unless an equal division would not be just and equitable. However, the Act treats different categories of property differently. Certain property values may be exempt from division, while growth in exempt property and certain other categories are divided on a just and equitable basis, rather than under a presumption of equal division.
Property division can involve:
- The family home and other real estate
- Bank accounts, investments, and savings
- Pensions and retirement funds
- Vehicles and personal belongings
- Business interests and other significant assets
- Debts and financial obligations, whether held jointly or in one partner’s name, as relevant to the property division
An equal division doesn’t mean every asset must be split down the middle. One partner might continue to reside in the family home while the other receives assets of a similar value. Couples can work out these arrangements together, but if they can’t agree, the court may decide how to divide the property.
Why Long-Term Relationships Can Make Property Division More Complex
The longer a couple has been together, the more financially connected their lives often become. They may have purchased property, built businesses, contributed to retirement accounts, or taken on different responsibilities within the household.
For example, one partner may have worked full-time while the other stayed home to raise children or manage the household. Both contributions can be considered when dividing property after separation.
Long-term relationships can also involve assets acquired before the relationship that have increased in value over time.
Property division after long-term relationships can become more complicated when couples disagree about which assets should be divided, what they’re worth, or which exemptions apply.
Cohabitation and Adult Interdependent Partner Agreements
Couples who live together without getting married may enter into a cohabitation agreement to set out how they will handle property and financial responsibilities during the relationship or if they separate.
These agreements can address property ownership, debt responsibilities, and how certain assets will be divided.
An Adult Interdependent Partner Agreement serves a different purpose. Under Alberta law, it is a formal agreement that can establish an adult interdependent relationship without requiring the couple to live together for three years.
A family lawyer can help draft or review these agreements to make sure the terms are clear and legally appropriate.
What Is an Adult Interdependent Partner?
In Alberta, the term adult interdependent partner describes individuals who meet certain legal requirements for a committed relationship outside marriage.
Generally, two people may qualify if they:
- Have lived together in a relationship of interdependence for at least three continuous years.
- Have lived together in a relationship of some permanence and have a child together by birth or adoption.
- Have entered into a valid Adult Interdependent Partner Agreement.
A relationship of interdependence involves sharing one another’s lives, demonstrating emotional commitment, and functioning as an economic and domestic unit.
Since January 1, 2020, Alberta’s Family Property Act has generally given qualifying adult interdependent partners similar property division rights to married spouses.
The Government of Alberta provides additional information about dividing property between unmarried partners, including eligibility requirements and how the legislation applies.
Not every couple who lives together qualifies as adult interdependent partners, so it’s important to establish your legal status before dividing property.
Limitation Periods for Property Claims
Alberta has specific deadlines for making property claims following a separation.
Adult interdependent partners generally must start a Family Property Act claim no later than two years after they first knew, or ought to have known, that they had become former adult interdependent partners. This is not necessarily the date they separated. Under the Act, former-partner status can arise, for example, through a written agreement showing an intention to live separate and apart without reconciliation, or after more than one year of living separate and apart with the required intention that the relationship not continue. Other statutory events can also trigger that status.
Different limitation rules can apply to married spouses, depending on their circumstances and when divorce proceedings begin.
Missing an applicable deadline can affect your ability to pursue a property claim, so getting legal advice early is important.
Factors Courts Consider in Property Division
Courts apply the Act’s different rules for exempt values, property divided on a just and equitable basis, and property presumptively divided equally. When deciding a just and equitable division or whether to depart from equal division, the court considers the statutory factors relevant to the circumstances.
These may include:
- The length of the marriage or adult interdependent relationship
- Each partner’s financial and non-financial contributions
- Property owned before the relationship began
- Inheritances, gifts, and other potentially exempt assets
- Changes in the value of property during the relationship
- Existing property agreements and other relevant circumstances
The Family Property Act sets out the rules for dividing property, including applicable exemptions. Unless the parties have a written agreement meeting the statutory requirements that provides otherwise, property to be divided is generally valued at the date of trial, not automatically at separation. Financial disclosure is required in a property action; professional valuations may also be needed, particularly for businesses, pensions and other complex assets. Tax consequences and liabilities can affect the practical value of a proposed settlement.
Getting Legal Help With Property Division After a Long-Term Relationship
Property division after long-term relationships can involve significant financial decisions that affect both partners well beyond the separation itself.
At Mincher Koeman, we help clients understand how their property may be divided, what they may be entitled to, and how to address financial disagreements during separation.
Our team of family lawyers assists clients in Calgary, Canmore, and surrounding communities with matrimonial and family property division, including complex assets, business interests, pensions, and property disputes involving married spouses and adult interdependent partners.
If you are separating after a long-term relationship, connect with Mincher Koeman today to book an appointment to review your case. Our team can review your circumstances and explain how Alberta’s property division laws may apply to your separation.
This article provides general information about Alberta law and is not legal advice. The applicable rules and deadlines depend on your circumstances. Obtain legal advice about your situation before relying on this information.
