A New Brunswick separation is, at its heart, a financial event. Most of the decisions that shape your next ten years are about money: who keeps the house, how pensions are split, whether support is paid and for how long. This guide walks through how New Brunswick handles each of those questions.
Under the Marital Property Act each spouse is entitled to an equal share of marital property: what the family used, whether owned before or during the marriage. Business assets are generally not marital property. Debts are shared too. Apply before the divorce or within 60 days after. Common-law couples are not covered unless they signed an agreement.
Two sets of rules
A New Brunswick divorce runs on two laws. The divorce itself and support for married spouses come under the federal Divorce Act. Property comes under New Brunswick's Marital Property Act, and support outside a divorce under the provincial Family Law Act.
How New Brunswick divides property
Marital property is what the family usually used while you lived together, owned by either or both of you, before or during the marriage: the home, a cabin or camper, furniture and appliances, money and investments, cars and recreational vehicles. Each spouse is entitled to an equal share, and both have an equal right to stay in the marital home and use household items.
Debts are shared too
Mortgages, car loans, credit card balances and lines of credit taken on during the relationship are shared, whichever spouse signed for them. A court can relieve a spouse of some debts if that is fair after looking at the whole situation.
Business assets
Assets used for a business are generally not marital property. If one of you owns a business, its value and how it was built up need careful attention, because the court can still look at fairness overall.
An application to divide marital property can be made before the divorce or annulment, or within 60 days after it. You do not need to be formally separated to apply if the marriage has broken down.
Common-law couples
The Marital Property Act is for married spouses. Unmarried couples are covered only if they signed a cohabitation agreement or similar contract that sets out how property is divided; otherwise each keeps what is in their name, subject to claims such as unjust enrichment.
The house and the pensions
The two biggest assets in most separations are the family home and retirement savings. Pensions and RRSPs built up during the relationship usually count even if they are in one person's name, and dividing them takes the right paperwork so the transfer is not taxed as a withdrawal. Canada Pension Plan credits earned while you lived together can also be split through Service Canada, separately from everything else. Trading the house for the retirement savings is a common move that can quietly cost a great deal if the after-tax values are not compared properly. Modeling these trade-offs before you agree to anything is exactly the kind of decision Your Divorce Angel is built to help you see clearly.
Spousal support
Married spouses claim spousal support under the Divorce Act; unmarried partners who qualify under the provincial Family Law Act. Courts rely on the Spousal Support Advisory Guidelines (SSAG): advisory, not binding, but the practical starting point.
In Canada, periodic spousal support paid under a written agreement or court order is tax-deductible for the payer and taxable income for the recipient, the reverse of the current US rule. Lump-sum spousal support is neither, and child support is never deductible or taxable. To claim the spousal deduction you must also be current on any child support owed.
Child support
Child support follows the Federal Child Support Guidelines: a table amount based on the paying parent's income and the number of children, using the New Brunswick table, plus a share of special or extraordinary expenses such as childcare, in proportion to income. When each parent has the children at least 40% of the time, the starting point is the difference between the two table amounts. The Family Support Orders Service can collect payments.
The financial timeline
Two things people consistently underestimate: how long the process takes and how much costs rise once you are running a household alone. A realistic sequence: at separation, write down the date and fix the picture of assets, debts and what each of you brought in; exchange full financial disclosure; negotiate the split and support, often through mediation; settle in a written separation agreement or go to court; and carry out the transfers. A divorce itself needs one year of separation (you can live under the same roof and still be separated), and one of you must have lived in New Brunswick for at least a year before applying.
New Brunswick divorce finance, at a glance
| Property division | Equal share of marital property (Marital Property Act) |
|---|---|
| Owned before marriage | Included if the family used it |
| Business assets | Generally not marital property |
| Debts | Shared, whichever spouse incurred them during the relationship |
| Deadline | Before the divorce or within 60 days after |
| Spousal support | SSAG (advisory) |
| Child support | Federal Child Support Guidelines (New Brunswick table) |
Questions worth asking before you negotiate
- Which of our assets did the family actually use, and which were used for a business?
- Which debts were taken on for the family, and should any be left with one spouse?
- Have pensions and CPP credits been valued and included on both sides?
- Will property be settled before the divorce, or within 60 days after?
- What does the SSAG range suggest for support, and how does tax change its real value?
New Brunswick divorce: common questions
How is property divided in a New Brunswick divorce?
Each spouse is entitled to an equal share of marital property: the property the family usually used, owned by either spouse before or during the marriage. A court can decide otherwise where that is fair.
Is a business divided in New Brunswick?
Assets used for a business are generally not marital property, though a court looks at fairness overall.
Is there a deadline to divide property in New Brunswick?
Yes. An application can be made before the divorce or annulment, or within 60 days after it.
Do common-law couples share property in New Brunswick?
Not under the Marital Property Act, unless they signed an agreement that applies it. Other claims, such as unjust enrichment, may be available.
Is spousal support taxable in Canada?
Yes. Periodic spousal support paid under a written agreement or court order is taxable to the recipient and deductible for the payer. Lump-sum support is neither, and child support is never taxable or deductible.
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This guide is general financial information about separation and divorce in New Brunswick and reflects New Brunswick's Marital Property Act and Family Law Act and the federal Divorce Act as of the date noted. It is not legal advice, and laws and individual circumstances change. Always consult a licensed New Brunswick family lawyer for advice specific to your situation.