Is my Spouse Entitled to my Pension After Separation?

Dividing assets after a separation can be complex, and pensions are often one of the most significant financial considerations. In Alberta, pensions accumulated during a marriage are considered family property and are subject to division upon divorce. Understanding the legal framework, valuation methods, and possible division strategies can help ensure a fair resolution.

How Are Pensions Treated in Divorce?

Under Alberta’s Family Property Act, pensions earned during the marriage are considered family property, making them subject to division like any other asset. This means that, regardless of which spouse contributed to the pension, both spouses may be entitled to a portion of its value. The division process is designed to ensure fairness, taking into account factors such as the length of the marriage and each spouse’s financial situation.

Methods for Dividing a Pension in Alberta

There are several ways pensions can be divided, depending on the type of pension plan and the preferences of both parties:

• Canada Pension Plan (CPP) Credit Splitting – CPP contributions made by both spouses during their relationship can be split upon separation if eligibility criteria are met.

• Defined Contribution Plans – Typically, a portion of the accumulated funds can be transferred to the non-member spouse without significant restrictions.

• Defined Benefit Plans – These pensions are subject to more regulation, and the amount available for division is determined by pension legislation.

Are There Any Restrictions on Pension Division?

While pensions earned during the marriage are generally divisible, there are restrictions:

• Contributions made before the marriage or after separation may not be included in the division unless specific circumstances apply.

• Pension legislation imposes limits on how and when benefits can be transferred.

A common approach used by courts, is to divide only the portion of the pension accrued during the marriage. Any increase in pension value after the separation date typically remains with the contributing spouse.

Why Legal Advice Is Essential

Seeking guidance from a knowledgeable family lawyer can help ensure a fair outcome and prevent legal complications. At Stokes Law Family, we offer insights into the most effective division strategies and work to safeguard your financial interests. If you are facing a separation and need clarity regarding your pension entitlements, please contact Stokes Law Family.

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