There is currently uncertainty regarding the Family Law Act when “excluded property” is put into joint tenancy.
The Family Law Act does not say whether or not the exclusion is forfeited in whole or in part when one spouse gifts a property to the other spouse by registering the property in joint tenancy. These are the possible outcomes:
- The value of the excluded property remains intact,
- One-half of the exclusion is lost (as is the case in Alberta), or
- All of the exclusion is lost (as is the case in Saskatchewan).
Until there are some judicial decisions in British Columbia which addresses this issue we do not know the answer to this question.