When spouses separate, pension is one of the item under the equalization of assets. Pension earned during a marriage is a joint asset which is subject to division when spouses separate and divorce. According to the law in Ontario, each spouse is entitled to a share of the other spouse’s pension. Some rules have to be followed on how the division of pension is calculated.
The laws relating to division of pension fall under the Family Law Act and Ontario Pension Benefits Act. Pension must be valued. Prior to Janaury 2012, there was no standard forms used to have the pension valued. An independent actuarian could be retained to determine the value of the pension. After January 2012, a standard form is used to value pension. Members of Ontario regulated pension plan must complete relevant Financial Services Commission of Ontario (FSCO) forms. The spouse requesting the valuation of a pension must complete the Form 1-Application for Family Law Value. This pension value once determined is used for the equalization and inserted on the Net Family Property.
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