Pensions and Divorce in Ontario
Pensions are often one of the most significant assets in family law in Ontario. Pensions are considered property under the Ontario family law and are subject to property division if you are married.
Pension plans from an Ontario pension plan can be valued by the plan administrator whereas pensions from other provinces and countries will need to be valued by an expert to comply with Ontario family law.
Pensions are before tax assets, meaning that taxes have not yet been paid on your pension. Therefore, when performing an equalization calculation, the after-tax value of a pension should be used.
Just because a pension is included in property division calculations does not mean that your pension must be divided or withdrawn. It also does not mean that you have to transfer funds from your pension. It is possible to transfer other assets in lieu of the pension. However, in many cases, it is preferable to transfer a portion of the pension.
A pension can be both an asset and a source of income. Before retirement, a pension is solely an asset. However, once you retire and the pension starts paying you, your pension becomes both an asset and a source of income.
We have 10 years of experience in helping our clients with their pensions during divorce or separation.
We are happy to help you with your legal concerns about your pension. Contact us at 613-453-2275 to schedule a consultation today!