Division of Family Property.

When spouses separate in Alberta, the division of property generally follows a four-step process under Alberta’s Family Property Act.

1. Identify the Property and Debt
The first step is to identify the property and debts that must be considered. Generally, this means determining the up-to-date property and debts owned by the spouses.

2. Identify Exempt Property
Certain property may be exempt from division. The next step is to identify any exempt property and remove the exempt value from the property to be divided.

Exemptions can apply to certain property brought into the relationship, as well as some gifts, inheritances, insurance proceeds and other categories of property recognized by the Family Property Act.

3. Identify Property That May Be Divided Unequally
Some property falls under section 7(3) of the Family Property Act. Rather than automatically dividing this property equally, the Court divides it in a manner that it considers just and equitable.

4. Divide the Remaining Family Property

After dealing with exempt property and property subject to section 7(3), the remaining family property is generally divided equally between the spouses.