How are pensions divided in a divorce?
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How are pensions divided in a divorce?
The Canada Pension Plan (CPP) contributions you and your spouse or common-law partner made during the time you lived together can be equally divided after a divorce or separation. This is called credit splitting. Credits can be divided even if 1 spouse or common-law partner did not make contributions to the CPP.
Is my pension safe from divorce?
While a pension can be divvied up between spouses during divorce, that division isn’t automatic. In terms of how much a husband or wife is entitled to, the rule of thumb is to divide pension benefits earned during the course of the marriage right down the middle.
Are pensions considered marital property?
A: Unfortunately, Jeanne, when you are negotiating a separation agreement for a long-term marriage, every asset grown during the marriage is up for grabs. The law is such that, any assets that have grown during the time of the of the marriage, pension included, are used to determine the net family property.
