Are pension assets divided on the breakdown of spousal relationships?
A division can occur only on the breakdown of a spousal relationship and in accordance with a court order or interspousal agreement made pursuant to The Family Property Act. A
division cannot occur if there has not been a breakdown in the spousal relationship. The
pension plan administrator cannot act on any other direction than that given by an order
or agreement.
The division of pension benefits is not mandatory. The
couple may prefer, or the courts may order, a division of family property in such a manner
that the member's or former member's pension benefits remain intact.
The member must maintain a prescribed minimum interest in
the plan so as to not unduly change the employee-employer relationship. A division of
pension benefits must not reduce the commuted value of the member's benefits to less than
50% of the commuted value of the member's benefits prior to the division.
For further details please refer to
our publication
Division of pension
benefits on spousal relationship breakdown.
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