How Are Pensions Divided After a Separation or Divorce?
Under the BC Family Law Act, pensions are family property. Spouses are both entitled to family property and responsible for family debt, regardless of their respective use or contribution and on separation, each spouse has a right to an undivided half interest in all family property and is equally responsible for family debt.
What would my spouse be entitled to?
After a separation or divorce, from marriages or common-law relationships, your spouse could be entitled to half of the value of your pension, from the date of the marriage to the date of separation, and in some cases, the growth after separation. Generally, your spouse may not be entitled to the portion that was accumulated before your marriage, but you might want to divide all of the benefits if you were married for a long time, or if you are both retired or close to retirement.
What information do I need?
You will need to know what type of plan you hold and you might want to have your pension valuated. You should make inquiries about the applicable taxes on your pension payments. You should also know that the amount you have paid into the plan, may not necessarily mean that amount is the amount of its actual value.
What are my options when dividing my pension?
Upon separation your options could include:
Paying the other party out;
Off-setting the benefit with another asset; or
Agreeing to split the pension when it gets paid out.
Once both parties are in agreement, you should consider clearly setting out the terms in a Separation Agreement.
How can I protect my pension?
If you are entitled to a pension, you may want to consider getting a Marriage Agreement to protect it. Marriage Agreements can be useful in setting out the terms of agreement with respect to assets and debts, and their division upon a breakdown of a marriage.
If you have questions about the division of your pension after separation or divorce, speak with one of our experienced family law lawyers.
Want to learn more? Please contact us for a consultation.
The material provided in this blog is for general information and education purposes only and does not contain, and should not be construed as containing, legal advice applicable to a particular set of facts. If you require legal advice, please contact us for a consultation with one of our experienced family law lawyers.
