Over the course of your working life you will contribute a lot of money within your pension. If your relationship has soured, and it looks like things are coming to an end, you will likely begin to wonder how you can expect property and assets to be divided between you and your partner once the divorce is finalised.
Evaluating Your Shares
A pension is considered property in exactly the same way that a house or savings at the bank would be considered property. For this reason, the amount accrued in your pension over the course of the marriage will be given a valuation and divided accordingly.
It may not be so easy to determine that exact valuation. For this, an actuary may need to be involved in order to determine how to best split the pension. Valuation will inevitably depend on a variety of factors, including the expected date of retirement and tax considerations.
If it isn’t possible for the separating parties to reach an agreement on what is a fair way to divide the pension, it is possible that this issue will need to be resolved through litigation.
Settling the Payment
After a fair evaluation has been decided upon, it will also be necessary to agree on how best to pay out this share. In some cases, it may be possible for this amount to be paid out immediately, while in others the amount will be held until the person involved receives their pension.
What if the Pension is Already Being Paid?
If the pension is already in pay and being received by one of the parties it will be treated very differently in divorce. In these situations the pension will not be divided as property but rather there will be a split of the monthly amount received by the recipient.
If you are in any way uncertain about property division or how your pension or the pension of your spouse who you are separating from will be divided following the divorce, get in touch with a Newmarket lawyer from Epstein & Associates. We represent clients accross the GTA, including Aurora, and have offices in Newmarket, Barrie and Richmond Hill.