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  • CPP after divorce

    My husband was with his ex from 1980 until 1996.

    They had a separation agreement in 1997, but didn't finalize the divorce until 2006. When he filed for the divorce in 2006 she was told she couldn't get any of his work pension because she waited to long to ask for it. I believe there is a 7 year rule.

    Fast forward to now... he will be 62 this year and is considering collecting his CPP. We realize she can still apply for a CPP split for the years they were together if she wants to. We also think she isn't aware of this info.

    What happens if he starts collecting, and a few years down the road she figures out she could be getting a portion of it? Would he have to make some kind of repayment?

  • #2
    Talk to a lawyer but, I believe the split isn't retroactive and the party would have to go to court to collect the retroactive payments. The legal battle (and complexity) to do this would far outweigh any money the party would get.

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    • #3
      "If you did not apply within 36 months after the end of your marriage, your pension credits can be divided only if your former spouse is still alive and agrees in writing to waive the 36-month time limit."

      For complete information:

      Divorced or separated: Splitting Canada Pension Plan credits

      I do not know if there are exceptions/appeals to this rule. Hardly seems fair if one person didn't know of their entitlement and the other person did. I can see this happening if someone was self-represented though.

      Comment


      • #4
        Originally posted by arabian View Post
        "I do not know if there are exceptions/appeals to this rule. Hardly seems fair if one person didn't know of their entitlement and the other person did. I can see this happening if someone was self-represented though.
        I can't imagine that it would be worth the effort to seek an order for an exception to the rule you stated. CPP isn't a windfall at all.

        Comment


        • #5
          Depends upon the individual's situation. What's the max for CPP? 1092.50/month. A person would have to calculate it and see what difference it made. There is an option available for someone to basically drop the lower or no-income years off so credit splitting may or may not make a big difference. For someone who is quite poor it could make quite a big difference in their standard of living. Interesting nevertheless - particularly for those of us who will be receiving CPP in the not-too-distant future.

          just found the CPP info for 2016:

          http://news.gc.ca/web/article-en.do?nid=1026259
          Last edited by arabian; 03-12-2016, 03:04 PM. Reason: maximum CPP amount

          Comment


          • #6
            Originally posted by arabian;206211[B
            ]"If you did not apply within 36 months after the end of your marriage, your pension credits can be divided only if your former spouse is still alive and agrees in writing to waive the 36-month time limit."

            [/B]For complete information:

            Divorced or separated: Splitting Canada Pension Plan credits

            I do not know if there are exceptions/appeals to this rule. Hardly seems fair if one person didn't know of their entitlement and the other person did. I can see this happening if someone was self-represented though.
            it all depends on the dates...I read this
            Divorced or separated: Splitting Canada Pension Plan credits

            our marriage ended in divorce or annulment

            If your marriage ended in divorce or annulment on or after January 1, 1987, you may qualify for a credit split if:
            • you lived with your former spouse for at least 12 consecutive months
            • you or your former spouse notifies Service Canada and provides the necessary information (there is no time limit).

            Comment


            • #7
              Originally posted by arabian View Post
              "If you did not apply within 36 months after the end of your marriage, your pension credits can be divided only if your former spouse is still alive and agrees in writing to waive the 36-month time limit."

              For complete information:

              Divorced or separated: Splitting Canada Pension Plan credits

              I do not know if there are exceptions/appeals to this rule. Hardly seems fair if one person didn't know of their entitlement and the other person did. I can see this happening if someone was self-represented though.
              arabian, that's for marriages that ended before 1986.

              I found this at the same link.

              If your marriage ended in divorce or annulment on or after January 1, 1987, you may qualify for a credit split if:

              • You lived with your former spouse for at least 12 consecutive months.
              • You or your former spouse notifies Service Canada and provides the necessary information (there is no time limit).


              I did do some of the math. He has paid more into CPP since the marriage ended than he did during the marriage. I told him that likely means take that less than half (for the years during the marriage), and then half that.

              As far as fair... his 2 kids were 9 years apart. He paid full CS for both kids until the youngest was 19. By that time the oldest was 28, and the oldest came to live with us when she was 13. He is also still paying off the student loan for the youngest while the youngest is living at home and working to help cover the bills for his ex. Ex does not work currently. When she has worked it was part-time and her income was enough to barely scrape by. That's why he never tried to reduce the CS. She needed it to take care of the youngest. I believe she is currently receiving some disability. He's been more than fair. So, if she applies for it she's legally entitled to it, but he will absolutely not tell her about it.
              Last edited by paris; 03-12-2016, 04:20 PM. Reason: Added more info

              Comment


              • #8
                CPP is for duration of relationship correct. Not just marriage?
                I just heard about this CPPsplitting crap.
                So they will figure out who co tributes more and the other will get the difference?

                I thought odd my ex lawyer never mentioned during our separation agreement... But now that I'm filing for divorce I came across this information. And am wondering if I should bother or will get burned when I retire???


                Sent from my iPhone using Tapatalk

                Comment


                • #9
                  I have wording in my divorce order that states that neither of us will seek s share of the other's pension, including CPP (I think the exact wording is "X waives all future claims to Y's pension from any source under any circumstances ... Y waives all future claims to X's pension etc"). In our case, our incomes are close enough that it wouldn't make sense for either of us to go after the other's CPP anyway, so the clause is probably pointless. If one party is very low-income and the other party is middle- or high-income, such a clause might make sense.

                  Comment


                  • #10
                    My ex is a multi-millionaire and our income disparity is huge. I am currently struggling to meet the basic needs of my children and myself ( food, shelter, clothing). He took half my CPP with the goal of destroying me and making retirement impossible for me. He was mostly self-employed and did not pay into CPP, that's why despite our huge income gap, he was able to claim it. When I contacted the CPP office they told me the splitting was never intended to line the pockets of the richer spouse while driving the poorer spouse further into poverty but they felt it was useless for me to appeal.

                    Comment


                    • #11
                      Stripes... lots of people have put that in their final agreement, but CPP does not care. If one of the parties applies for it, they get it.

                      Comment

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