If you are in a common-law relationship, only the member may apply. You can apply if you are the plan member or the married spouse of the plan member. To apply, complete the Application for Family Law Value (the “Valuation Application”). The first step is to apply for a valuation of the pension. Where do I start?Īction required by plan member and plan member’s spouse. Contact the plan administrator to find out whose certification they can accept. The person who signs the endorsement must compare the original document with the copy and confirm that they are the same. Contact the plan administrator or consult a lawyer with any questions about the pre-2012 rules.Ĭertified Copy: A certified copy has an endorsement that it is a true and complete copy of the original.
To request payment from the plan, provide the plan administrator with a certified copy of a Settlement Instrument.
reaches the normal retirement date under the pension plan. terminates employment (or plan membership in the case of multi-employer pension plans). If the pre-2012 rules apply, the plan administrator cannot make a payment until the earliest of the date when the member: Settlement Instruments include the following: Instead, the pre-2012 pension valuation and division rules apply. it required one spouse to make an equalization payment under section 5 of the Ontario Family Law Act. the Settlement Instrument was dated before Janu. On January 1, 2012, the rules dealing with pensions on marriage breakdown changed. What if I have an agreement signed before January 1, 2012? Contact the provider of these plans for assistance. Supplemental Employee Retirement Plans (SERPs), Retirement Compensation Arrangements (RCAs), Registered Retirement Savings Plans (RRSPs), etc.). Any other pension or retirement savings plans not governed by the Ontario Pension Benefits Act (e.g. Contact Service Canada for information about credit-splitting for CPP. Government sponsored retirement benefits (e.g. Contact the Government of Canada Pension Centre for assistance. Federal government pension plans (e.g. Look under Marriage or Common-Law Partnership Breakdown. You may also refer to the Office of the Superintendent of Financial Institutions' newsletters. Contact your plan administrator for assistance. plans in federally regulated sectors such as aviation, banking, telecommunications or interprovincial transportation when performing work under federal regulation). Federally regulated pension plans (e.g. This Guide does NOT apply if you are an Ontario resident participating in the following plans: If you are unsure if this Guide applies to you, check with your plan administrator or a lawyer. The Ontario Pension Benefits Act applies to the pension benefit. The last place you and your spouse resided together before separation was in Ontario and. The Ontario Family Law Act applies to your marriage breakdown. The process for valuation and division in this Guide applies if: See How do I deal with my pension after separation? This Guide also applies to common-law spouses if they choose to divide pension assets. The Ontario family property rules explained in this Guide apply to married spouses. Spouses can, but do not have to, use up to 50% of this value to equalize Net Family Property. Text description of image titled "What are the steps in the process?"įamily Law Value: The total value of the pension accrued during the relationship. Complete steps 4 to 6 if you and your spouse decide to use the pension to equalize your Net Family Property. CREATE BOOKLET FOR DIVORCE OF ASSETS HOW TO
Steps 1 to 3 show how to get the value of a pension. It also governs how to divide any part of a pension used as an equalization payment. Pension legislation governs how a pension is valued for inclusion in the Net Family Property calculation. It does not make a difference for many other issues including spousal and child support and pension survivor benefits.
Common-law spouses who are considering dividing their pension assets should seek legal advice.Ĭommon-law status makes a difference as to whether you must equalize Net Family Property. They may choose to do so under a domestic contract or a family arbitration award. The Ontario Family Law Act does not require common-law spouses to equalize their Net Family Property. What if I am in a common-law relationship? The above tables are illustrative only, and do not take into account tax considerations. Spouse A can settle the equalization payment using the pension, other assets, or a combination thereof. Spouse A must then make an equalization payment of one half of that difference ($60,000) to satisfy their obligation. To equalize, calculate the difference between the Net Family Property of Spouse A ($200,000) and Spouse B ($80,000).
Explanation: Spouse A has a larger Net Family Property than Spouse B.
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