To illustrate how excluded property works, let’s look at one type of excluded property: property one spouse brought into the relationship. It’s important to note that in this type of property only the value of the property at the beginning of the relationship is excluded from division. As a result, without a marriage agreement or cohabitation agreement, any appreciation of the excluded property during the relationship is shared.<\/p>\n

For example, consider a relationship in which one spouse entered the relationship with a piece of land worth $100,000. When the spouses separate, that piece of land is worth $200,000. The spouse who brought the land into the relationship will be entitled to the original $100,000 and half the appreciation. This spouse is entitled to $150,000 from that land and the other spouse is entitled to $50,000. In this situation, the ex-spouses might choose to sell the land and distribute the money accordingly. Alternatively, one spouse might buy the other\u2019s spouse\u2019s share of the land.<\/p>\n

Excluded property can be traced if excluded property is sold to purchase other property throughout the relationship. For example, let\u2019s look at the situation where one spouse owns a condo in Vancouver at the beginning of a relationship, but sells it during the relationship and uses the money to buy a condo in Victoria. The value of the Vancouver condo at the beginning of the relationship remains the Excluded Property of the spouse who brought it into the relationship, even though he or she no longer owns that condo. If the Vancouver condo was worth $300,000 at the beginning of the relationship, $300,000 of the Victoria condo is now excluded property.<\/p>\n