What You Need to Know About Family Property Division in Alberta: 7 Key Tips for Divorce Planning

By Gurjant Bains, Alberta Family Lawyer with Crossroads Law

Divorce can be emotionally and financially complex, especially later in life when you’ve spent decades building a career, acquiring property, or planning for retirement. For high-net-worth individuals, dividing family property goes beyond fairness to preserving what you’ve worked hard to achieve and setting yourself up for the next chapter.

Whether you’re initiating a separation or responding to one, understanding the basics about family property division and having a thoughtful financial strategy—supported by the right professionals—can make all the difference. 

Here are seven essential tips to help you understand your rights, make informed decisions, and protect your assets—before, during, and after a relationship ends.

1. The Presumption of Equal Division

In Alberta, the Family Property Act (the “Act”) governs how property is divided when a marriage or adult interdependent partnership ends. The Act aims for a fair and equitable division of assets and, as a starting point, presumes that assets and debts accumulated during the relationship will be divided equally (50/50) between the spouses. 

This includes the family home, investments, business interests, and retirement savings –even if only one spouse’s name is on the title or account. Why? Because the law recognizes that both partners contribute to the relationship, financially or otherwise.

But equal isn’t always fair. 

Recognizing this, the Act gives the court discretion to depart from a 50/50 split if it would lead to a clearly unfair result.

For example, if one spouse recklessly spent or hid money, or if a short marriage didn’t meaningfully increase shared wealth, the division might look different. 

Knowing when to advocate for an unequal division, or when to push back against it, requires

experienced legal guidance and a strategic review of your financial picture.

2. Identify and Preserve Exempt Property

Certain types of property are considered “exempt” and are not divided upon separation. This includes:

• Assets owned before the relationship began 

• Inheritances or gifts received during the relationship 

• And, personal injury settlements.

However, exemptions come with important caveats. 

First, any increase in the value of exempt property during the relationship may still be subject to division. For example, if you inherited a vacation home and its value grew over the years, that growth may be split—even if the property itself stays yours.

Second, how exempt property is treated during the relationship can affect whether it retains its exempt status. For instance, if you receive an inheritance and deposit it into a joint account, the law may presume it was intended for shared use—potentially compromising the exemption.

Maintaining clear records is essential. Keep documentation showing when you acquired the asset, how it was used, and how it was maintained. This can help ensure these assets remain excluded from division.

One way to strengthen your position and help preserve exempt property is through a cohabitation or prenuptial agreement. These agreements let couples decide ahead of time how their property—whether they brought it into the relationship or acquired it together—will be handled if they separate. By setting clear expectations from the outset, a cohabitation or prenuptial agreement can offer added protection for individual assets and help reduce the likelihood of future conflict. 

Ultimately, if you suspect you have exempt property, consult a lawyer early. Strategic planning can help you protect what you’ve brought into the relationship.

3. Accurately Valuing the Family Home 

For many couples, the family home is the most significant asset—both financially and emotionally. Whether you plan to sell the home or negotiate a buyout, obtaining an accurate, up-to-date valuation is an essential first step.

Lawyers often recommend getting a professional appraisal from a certified residential appraiser. While this does come with a cost, it provides a much more accurate picture of your home’s value—accounting for current market conditions and unique features that may affect pricing. By contrast, relying on a municipal assessment or informal estimate can result in a misleading valuation and, ultimately, an unfair settlement.

If one spouse wishes to keep the home, refinancing may be necessary to pay out the other’s share. It’s important to factor in the long-term affordability of keeping the property: ongoing maintenance, property taxes, and utilities can add up quickly. Be honest about what you can realistically afford—consider not just the mortgage or buyout amount, but whether your post-divorce income and liquid assets will be enough to maintain the home alongside your other living expenses now that you’re managing them independently.

In some cases, spouses delay selling the home, whether for market timing or to provide continuity for children. These arrangements require thoughtful planning and may benefit from creative solutions such as co-ownership agreements or deferred sale provisions.

4. Consider Pensions and Retirement Savings

Retirement savings are often overlooked when dividing family property—yet they can be some of the most valuable long-term assets. In Alberta, RRSPs, pensions, and other retirement accounts accumulated during the relationship are considered family property and subject to division. 

However, dividing these assets isn’t as simple as splitting a bank account. Some pensions can’t be accessed until a certain age. Others involve complex valuation rules or require formal division orders. And, sometimes, withdrawing funds can trigger taxes or penalties. 

For many high-net-worth individuals, retirement savings represent a significant slice of the property division pie. A financial advisor can help assess the long-term impact of various division options, such as equalizing with other assets instead of splitting the pension itself. 

The goal isn’t just to divide but to preserve long-term financial security. Take the time to ensure any division strategy aligns with your broader retirement plan.

5. Business Ownership and Valuation

If you or your spouse owns a business, that business is likely considered family property. And like any other asset, it must be valued to determine its shareable worth.

Valuing a business is complex. Income, assets, goodwill, and future growth must all be assessed. This is why lawyers often recommend working with a qualified business valuator who can provide a clear and credible valuation.

In some cases, it may be strategic to negotiate a buyout or structured settlement that allows one spouse to retain the business. These arrangements can help avoid disruption to the business operations and preserve its long-term viability. 

When both spouses have been involved in the business, the situation can become even more nuanced. Contributions—whether financial or otherwise—can affect how the court views division. Additionally, shareholder or partnership agreements may limit what can be divided or transferred. 

If you're concerned about protecting the business’s future or maintaining privacy around sensitive financials, working with both legal and financial professionals can help you assess your options and make informed decisions that align with your long-term goals.

6. Addressing Debts and Liabilities

Just as assets are divided, so too are debts. Mortgages, lines of credit, tax obligations, and other liabilities acquired during the relationship must be accounted for. It doesn’t matter whose name is on the loan. If it was used for a family purpose, it may be shared.

Start by gathering a full picture of all debts. Pull credit reports, review loan statements, and track down any obligations tied to shared property. 

Strategically assigning debts as part of the overall settlement, alongside assets, can help achieve a fair outcome. In some cases, it may be better to assume certain debts in exchange for a more valuable asset.

7. Protecting Your Financial Future

Dividing property is only part of the equation. The real goal is setting yourself up for financial stability—and peace of mind—in the years ahead.

A separation agreement crafted with your unique goals in mind can serve as a helpful roadmap. This includes planning for:

• Tax efficiency (e.g., avoiding double taxation on asset transfers).

• Spousal support obligations or entitlements.

• And estate planning updates.

Work with a trusted team: a family lawyer to protect your rights, a financial advisor to plan for your future, and a tax professional to help minimize liabilities. Mediation may also be an effective alternative to litigation, particularly when both spouses want a more collaborative and cost-conscious path forward.

Dividing property in a divorce—especially when significant wealth is involved—isn’t just a legal process. It’s a financial, emotional, and strategic one. With the right guidance and a proactive approach, you can protect your legacy and take confident steps toward a more financially secure future.

At Crossroads Law, our lawyers collaborate with a diverse range of experts to achieve the best possible outcomes for our clients. We aim to help individuals not only resolve their legal matters but also prepare for a brighter future. 

For more information on Crossroads Law visit their website at https://www.crossroadslaw.ca

or find them on Facebook.

This commentary is intended to provide general information and should not be construed as financial, legal, tax or other advice. Individual circumstances and current events are critical to sound planning; anyone wishing to act on the information presented should consult with his or her financial advisor, legal or tax specialist.

David Popowich and Faisal Karmali are Investment Advisors with CIBC Wood Gundy in Calgary. The views of David Popowich, Faisal Karmali, and guest author do not necessarily reflect those of CIBC World Markets Inc. This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change. CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc