Pensions are considered to be part of property under the Family Law Act of Ontario. What this means for you is that a pension plan will be divided under a property division plan as part of a divorce proceeding or other family law proceeding. There have been recent changes made to the law which will affect how these funds are to be valued and divided and having knowledgeable legal counsel in your corner is more important than ever. At the Gene C. Colman Family Law Centre, our Toronto divorce and pension division lawyers can let you know what to expect when it comes to dividing pensions.
If you are facing a divorce and are concerned about retirement assets valuation and division, we can help. Contact our Ontario family law lawyers online or call 1-888-389-3099 to schedule a meeting to discuss your situation.
Pension Valuation and Means of Division
Placing a monetary value on a pension is a complicated business. The law states that a potential future source of income from a pension has a value that can be determined as of the date of separation. This is true even though you may not collect the proceeds of your pension for years, or if your company goes bankrupt and you never receive a penny. The value will be determined by individual pension administrators who will have to follow complicated government guidelines. Our Toronto divorce lawyers will do everything they can to ensure that your pension is valued fairly.
If you owe an equalization payment to your spouse, the Family Law Act allows for an immediate transfer of a lump sum out of your pension plan to satisfy this payment. If you are collecting pension payments already, then a portion of your monthly payments may be redirected. A lump sum may be transferred to:
- The receiving spouse's pension plan
- To a prescribed registered retirement savings plan (RRSP)
- To another prescribed arrangement
- Under certain circumstances, the sum can be left in the member's pension plan with a credit given to the receiving spouse
New Laws Will Affect How Retirement Funds Are Divided
New legislation is going to affect how retirement funds are divided. There is some confusion as to what exactly this means for residents of Ontario. That is why it is more important than ever to speak with a dedicated lawyer from the Gene C. Colman Family Law Centre. We will closely monitor the language of the legislation and the new cases that arise from these new laws and we will let you know how it is likely to impact your pension following separation.
Call for a Consultation at Our Ontario Retirement Assets Law Firm
You have worked too hard to build up your retirement plan to have it unfairly divided. New laws require creative new defensive measures. Contact our Toronto divorce and pension division lawyers online or call 1-888-389-3099 to schedule an initial consultation to discuss your case.