Dealing with Property Acquired Before Marriage/Cohabitation
The value of all property (assets) acquired in contemplation of a relationship or during a relationship is shareable.
If the asset was acquired before cohabitation, and still existed at the date of separation, only the increase or decrease in value during the relationship is shareable. For example, prior to the commencement of a relationship one spouse has an RRSP worth $100,000.00. At the end of the relationship, on the date of separation, the party’s RRSP is worth $250,000.00. The increase in value, $150,000.00, is shareable between the parties in the overall accounting. There are exceptions and rules.
Often one party owns real estate prior to commencing a relationship. If the real estate remains in the sole name of that person, only the increase in value of the property is shareable. The reduction of the principal on the mortgage on the property (if any) may also be considered. In addition, the non-owning spouse has Homestead Rights in the property. See The Homesteads Act of Manitoba.