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  • Common Law - Pension Question

    Greetings. My common law partner of 17 years and I are separated and going through the motions of splitting up assets, selling the house, etc. I was the major breadwinner in the realtionship ($100k+) while she did work (~45k / year) up until our kids were born 4 years ago. She will be going back to work within the next few months and I expect her to return to a job of $40k to $50k per year. I had been contributing to her RRSP (spousal) for years and she and I are nearly equal.

    I had received a pension contribution from my past companies which has been rolled into a LIRA and I currently have a RPP with my employeer (total is about $60k). Given a common law realtionship I didn't think that she was entitled to my pensions but I would like clarification. Is she entitles to half?

    We are civil and working through this ourselves and quite civil with each other. She has went to a couple lawyers and got terrible advice...conflicting, wrong, etc hence my request for assistance.

  • #2
    Originally posted by cdstein View Post
    Greetings. My common law partner of 17 years and I are separated and going through the motions of splitting up assets, selling the house, etc. I was the major breadwinner in the realtionship ($100k+) while she did work (~45k / year) up until our kids were born 4 years ago. She will be going back to work within the next few months and I expect her to return to a job of $40k to $50k per year. I had been contributing to her RRSP (spousal) for years and she and I are nearly equal.

    I had received a pension contribution from my past companies which has been rolled into a LIRA and I currently have a RPP with my employeer (total is about $60k). Given a common law realtionship I didn't think that she was entitled to my pensions but I would like clarification. Is she entitles to half?

    We are civil and working through this ourselves and quite civil with each other. She has went to a couple lawyers and got terrible advice...conflicting, wrong, etc hence my request for assistance.
    I think in Common law what is yours is yours and what is hers is hers to keep. I don't think she is entitled to share your pension or RRSP.

    Comment


    • #3
      She can claim for constructive trust. Although CL should only look at SS and CS, the courts are treating CL more and more like a marriage.
      See case law issues on CanLII.
      Remember, all is fair in love and war.

      Comment


      • #4
        Prove she made a contribution

        My lawyer informed me that the only way a CL partner could make a claim
        on the pension was 1) if you promised it to her 2) If she or he can prove
        that they made a contribution to it.

        Married or Common Law and pensions, different Rules.

        Not the case with SS however.

        Luck, Raven

        Comment


        • #5
          common law assets

          She is entitles to spousal support since your salary twice higher than hers, child support, part(up to 50%) of yours pension ( you accumulated during 17 years)

          Comment


          • #6
            Originally posted by sava123 View Post
            She is entitles to spousal support since your salary twice higher than hers, child support, part(up to 50%) of yours pension ( you accumulated during 17 years)
            I realize that I will pay child and spousal support...no issue there. You are stating that she is also entitled to half my pension which is a differing view than others have posted give this was a common law relationship and the pension contributions were made by my company solely to me - no contributions made by either me or her.

            Can you please explain if giving her half my pension (LIRA and RPP) is just your opinion or are you basing it on legal fact?

            Comment


            • #7
              You have to check with your pension plan company and how they treat a "spouse". If they use the "spouse as defined in the FLA" she has no claim to your company pension. I the wording is different, you may be on the hook. Ask them.
              As far as the CPP goes and RRSP's, you may be on the hook. As far as I know, my ex will get half of my CPP.

              Check other threads regarding this especially a case law in Nova Scotia where company pension was not awarded.

              Comment


              • #8
                Division of Pension Benefits Package

                This information package provides a summary of the division of pension benefits process upon marriage or common-law breakdown as provided for under the Pension Benefits Division Act (PBDA). It is intended for pension plan members under the Public Service Superannuation Act (PSSA) and their spouse or former spouse/common-law partner. It is for information purposes only. In the event of any discrepancies between the content of this package and the PBDA and its associated regulations, the latter will prevail.
                The PBDA came into force on September 30, 1994 and provides a mechanism for the division of pension benefits upon marriage or common-law relationship breakdown. The eligible applicant has to apply for a division of pension and produce a Court Order or written Agreement providing for a division of pension benefits. Pension benefits can be divided as part of the division of family assets to a maximum of 50 percent of the value of the pension benefits accumulated during the period of cohabitation

                Regards

                Comment


                • #9
                  continue;

                  As long as she can prove that you were a “joint family venture" - new ternin since Feb 18th, 2011 - landmark Family Law Decigion on Unjust Enrichment Claims and Remedies - Supremne Court : Vanasse v.Sequin and Kerr v.Baranov - please take a look... sorry to be one who brings bad news
                  Regards

                  Comment


                  • #10
                    Public Service Superannuation Act

                    This is for Public Service Employees and not for every pension plan.

                    Comment


                    • #11
                      she is entitled to half no matter. but if you have equal plans then no worries. she is entitled to half and you are entitled to half so there is no division required. If your company has made the contribution and you have not and neither has she then there is NO equalization. That is a benefit you recevied from your years of service with that company. Without you working there you wouldnt have that.

                      Comment


                      • #12
                        Originally posted by littleman View Post
                        she is entitled to half no matter. but if you have equal plans then no worries. she is entitled to half and you are entitled to half so there is no division required. If your company has made the contribution and you have not and neither has she then there is NO equalization. That is a benefit you recevied from your years of service with that company. Without you working there you wouldnt have that.
                        I don't believe that's true. The reasoning is that she contributed indirectly to your ability to work (by making meals for you, by doing more housekeeping, by doing a greater portion of child care, etc) and had full expectations of benefiting from your pension when you retired. There is always equalization of pension (unless you give up other assets instead, or somehow convince your ex not to go for it).

                        It sucked in my situation, because I did the bulk of the housekeeping, cooking and child care, on top of working the full time job as the greater breadwinner. So unlike the stereotypical case the law is based on, my ex did not really "support" my employment, but was still entitled to half my pension nonetheless. And as though that wasn't hard to swallow, because I had the greater income, I was making spousal RRSP contributions, so now I have a much reduced RRSP amount but don't get back any contribution room.

                        Edited to add:

                        This is definitely the case for marriage dissolution. I now realize you were speaking of common-law, so now I'm not so sure.
                        Last edited by Rioe; 08-24-2011, 09:30 AM. Reason: not paying attention

                        Comment


                        • #13
                          Wow! Thanks for all the advise and insight everyone. I've decided to speak with a lawyer and my hope is to clear up some of the murkiness. She bought a house last night and we now have a time crunch to finalize the SA such that she can get financing.

                          I confirmed that my company pension is covered under the FLA...but I want to get the exact wording as to the difinition of a spouse.

                          Please continue to offer advice...and I will keep you posted.

                          Comment


                          • #14
                            Under the FLA meaning of spouse, she is not entitled.

                            Comment


                            • #15
                              she is as entitled as a married woman, however I still maintain that if you didnt work at that particular company this question would be mute. But I have to disagree to her entitlement because she cooked and what not. She could have got a freaking job but CHOSE to stay home (I know Im going to hear it now). I whole heartedly think that if you have two children and one parents CHOOSES to stay home to raise them then that is your choice. If the marriage breaks up then why should the other parent pay for the years the other one CHOSE to stay home. Is the working parent getting compensation for the time they spent in traffic and away from their children while making a living? It just maddens me that people think they are ENTITLED andthe working parent is not.

                              Comment

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