Author Topic: Marriage Breakdown  (Read 20331 times)

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Offline Occam


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Re: Divorce and pension splitting?
« Reply #25 on: November 28, 2017, 15:45:02 »
I assume you are retired and are drawing your pension, though it doesn't really matter much.  If the pension division is approved, the actuaries will input some dates into a very convoluted formula, and it will spit out a number.  This amount will be paid to your spouse, and must(!) be deposited to a locked-in RRSP or life annuity.  Locked-in has a very specific meaning in this context; they cannot access the funds under any circumstances other than drawing a pension or annuity from it (after a certain age...55, I think).  The funds will not be turned over until an account number to a locked in RRSP or life annuity account is provided.  You will be expected to do the same thing when her pension is divided.  Your pension will be reduced correspondingly and you cannot buy back anything, either from your own pocket or from funds coming from your ex-wife's pension division. 

From personal experience, avoid pension division if you can at all help it.  Only you know what her pension benefits would be like for her 17 years of service; if the benefits are monetarily the same or close, there is no point to doing the split at all.  If your benefits are greater than hers, you can offer a lump sum out of pocket in exchange for neither of you making a claim against the other's pension.  It's all legal if it's written into the divorce agreement - you can wheel and deal to keep the pensions out of the picture, just make sure the terms get written up in the decree.

Some info on pension division as it pertains to CF Pensions:

Serving members (enrolled before 2007) -
Retired members -
« Last Edit: November 28, 2017, 16:21:45 by Occam »

Offline DovoNewb

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Re: Marriage Breakdown
« Reply #26 on: January 26, 2018, 12:30:51 »
Can someone, with similar experience, tell me if  VAC pension/benefits are considered as "income/assets," and divisible when going thru a divorce ?? (I want to do some legwork before I start paying a lawyer.)  Thanks

My ex wife and her lawyer made a move on my VAC payout, but it didn't happen. At least in Ontario there is ample case law to back up the argument that she was not entitled to it because it is not considered income, it is considered a disability payout. Your estranged spouse will most likely try to get some of it, they all do....

All the best!