What Can I Do to Protect My Assets from a Potentially Abusive Spouse in BC?

An “abusive relationship” is usually regarded as a threat to physical, mental, or emotional health. However, financial abuse is another form of domestic abuse that is recognized as having a potentially deep impact on the lives of victims in British Columbia.

Under the BC Family Law Act (FLA), several legal measures can help with asset protection from a potentially abusive spouse. You’ll need to act strategically and seek legal advice before deciding what to do, based on your precise circumstances.

Let’s take a look at the potential steps you can take to safeguard your assets.

What is financial abuse within a relationship in BC?

Financial abuse occurs when one partner uses money and financial resources as a tool of power and control over the other.

This is recognized as a form of psychological or emotional abuse, constituting “family violence” in British Columbia under the Family Law Act.

Examples of financial abuse in relationships

If your partner is doing any of the following, it may qualify as financial abuse:

• Controlling access to shared marital funds, restricting your ability to access bank accounts, cash, or credit cards.
• Sabotaging employment, preventing you from working, attending job interviews, or maintaining employment.
• Forcing financial dependence, keeping you entirely reliant on them for all financial needs.
• Coercing debt, pressuring you to sign loans, take on debt, or make financial decisions against your will.
• Concealing assets, such as income, investments, or property, to prevent a fair division of assets.
• Monitoring and controlling spending, demanding receipts, setting strict allowances, or controlling every purchase.
• Ruining credit, deliberately damaging your credit score, or financial standing.
• Exploiting joint finances, draining joint accounts, running up shared debt, or making major financial decisions unilaterally.

What are the potential legal consequences of financial abuse?

Because financial abuse is recognized as a form of family violence, courts must consider it as a factor when making decisions about parenting arrangements and property division. These are often among the key issues during a divorce in BC.

The federal Divorce Act also requires courts to consider family violence, including economic abuse, when determining the best interests of children and spousal support.

Protections from abuse are, therefore, in place for victims of financial abuse within relationships. Let’s look at the main legal steps available.

What can you do to protect your assets during separation in BC?

The first thing to do if you’ve been a victim of financial abuse in your relationship is to immediately document the abuse, if you haven’t already. Be specific, noting any transactions or communications that demonstrate a pattern of financial abuse.

Whether you’ve raised the issue with your spouse and the abuse is continuing, or you haven’t yet addressed it for fear of reprisals, consider the following asset protection options with your lawyer:

Apply for a protection order

If your spouse or partner has been controlling, forcing, coercing, exploiting, or sabotaging you financially, one of the first steps to consider is applying for a protection order.

Depending on the order you granted, it could restrict your spouse’s ability to access shared accounts or properties, while also ensuring that you are safe physically. Close physical proximity will also be prohibited under a protection order, so discuss this option in detail with your lawyer before moving ahead.

Protection orders under Part 9 of the FLA can also include conduct orders, which can specifically address financial conduct, not just physical proximity.

File a Notice of Family Claim

If you’ve decided that separation and divorce are necessary and the financial abuse is getting worse, speak with your lawyer about filing a Notice of Family Claim to formally start the process.

Part of the divorce process, as per the terms of the FLA, involves you dividing property and debts equally, ensuring that your spouse cannot take a larger share of the property accumulated during the marriage.

Note that courts can order an unequal division of family property where equal division would be “significantly unfair” (s. 95). Family violence, including financial abuse, is one of the factors a court may consider when ordering unequal division.

Consider a marriage agreement

If you are committed to the relationship but want the financial abuse to stop, a less “final” alternative to divorce is creating a marriage agreement that addresses financial and property issues.

Marriage agreements can be a tough subject to raise with a controlling spouse. With your lawyer’s advice and assistance, however, you may be able to save the marriage while introducing some asset protection measures for greater financial certainty.

Protect your business 

If you own or run a business, it is likely to be one of the biggest assets in your relationship. You may need to protect this asset from abuse by:

• Ensuring that your personal and business finances are kept separate.
• Updating shareholder agreements to limit your spouse’s involvement.
• Seeking a business valuation to establish its pre-separation value.

Protect real estate, trusts, and inheritances

If you’re in a high net worth marriage and want to protect real estate, trusts, or inheritances, consider the following actions:

• File a Certificate of Pending Litigation (CPL): This will prevent your spouse from selling, mortgaging, or transferring shared real estate without your consent.
• Ensure trusts or inheritances are documented as excluded property: This will prevent them from being classified as family property and subject to 50/50 division under BC family law.

Secure physical assets and freeze joint accounts

A few options that do not require the courts are:

• Secure valuable physical assets, such as property deeds, jewelry, or artwork, in a location outside of the home (e.g., a safety deposit box or with your parents).
• Contact your bank to freeze or restrict access to joint accounts. 
• Cancel joint credit arrangements and separate finances. 

These steps may be advisable if you suspect your spouse of trying to sell your assets, deliberately drawing down accounts, or incurring debt in your name.

Seek legal advice to protect your assets in BC

Relationships are unique. Our family lawyers will listen to your concerns and what you want to achieve before presenting your legal options based on your precise circumstances. 

It may be important to take prompt action for asset protection, in which case we will also help with filing papers for legal action and guiding you through the court processes.

If you are in the Langley area of British Columbia and need legal assistance with protecting your assets from an abusive spouse, DSG Family Law offers a free initial consultation to assess your situation and outline your legal options. Speak with a family lawyer today.