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Pension and Remarriage

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  • Pension and Remarriage

    Been separated over a year, if all matters have been resolved in the divorce except the pension and the ex files for divorce and remarries, how would my portion of the pension be protected?

  • #2
    A quick answer is if you have settled with your spouse - the agreement is forwarded to the pension and they will follow the agreement. It will not change for the vested part of the pension you have rights to - no matter what your spouse does. The sad part today is the pension remains very much linked to your spouse - you can only begin to draw benefit when your wife begins to draw on it (retirement). If your wife never retires and continues to work until she is 80 then it can be a long time before you will be able to begin collecting.

    Currently there is a bill in the works to change the link between the spouses so in effect it (the shared portion of the pension) can be broken away from the worker's pension, in effect the part severed from the main pension would the belong to you and you alone (it would be like your pension that you may have earned working yourself - your wife will have no say in it whatso ever from then on. It can take forever for the bill to pass into law so it will be too late for us.

    I did this a few times - I called my wife's pension people and asked them directly! They were so very helpful, offering advice and knowlege I could never have dreamed of and to a final note - they offered to review the seperation agreement to ensure what i wanted was in the wording of the seperation agreement. Trust me - nothing with pensions is simple.

    What they did say was the difference between having the pension linked and or unlinked with your spouse. There are huge differences and for me it would mean unlinked. I am on disability so retirement is important - they explained how to negotiate my wife's (their client) pension not only to the valuation date but right to age 65 and beyond! Using their wisdom has opened a new window of hope in the later years (should my body make it that long that is!).

    What the pension people told me was not breaching confadential information (by the way I gave them my wife's policy number, her name, my name and finally the purpose of my call that day). I belive i have called three times now as i learn new things and ask for their professional opinion on my options so that I may chose the best for my circumstance. They have extended their wishes and to feel free to call on them again! Pensions can be worth more than everything you have including your house so take the effort it deserves to learn.


    • #3
      Originally posted by Looking4Answers View Post
      Been separated over a year, if all matters have been resolved in the divorce except the pension and the ex files for divorce and remarries, how would my portion of the pension be protected?
      Your ex is entitled to half the value of your pension between date of marriage and date of separation. Whatever happens after that, ie, further increase in pension value, ex's remarrying, does not affect that portion which your ex gets. You can ask for that value in a raw number from your pension administrator.

      But if it hasn't been resolved yet in your agreement process, you can still handle it in a variety of different ways. You can give your ex more assets or cash now and keep your entire pension untouched for yourself. You can get the pension administrator to pay out that portion, which then goes into a locked-in RRSP that can't be accessed until retirement. Or any combination that you agree on.

      One thing to keep in mind though, is where the pension division may intersect with spousal support. If you give your ex half the pension now, and then you pay spousal support past your retirement, you are effectively also giving her part of your half later as well. Depending on how near to retirement you are, you may wish to take this into account somehow.


      • #4
        I am arranging mine so that my ex won't get access to 'his' share until he is retired...
        Secretly I'm hoping he might pass before then ! ha


        • #5
          If that were to happen, I'm pretty sure it would go to his heirs, not back to you, no matter how you arrange it, unless he agrees that you'll stay his beneficiary.


          • #6
            Originally posted by Rioe View Post
            I'm pretty sure it would go to his heirs
            I'm hoping this is exactly how it works out and it ends up with our children...


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