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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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  #1  
Old 06-15-2015, 10:49 AM
tlwa tlwa is offline
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Default Requirement to Draw on Pension

I pay my ex Spousal Support based on her earning no income. She is capable of earning income but has chosen not to and operates a small home based business which she claims is currently generating aprox $5000 annual income.

My Question for all is this. In our seperation agreement she was intitled to a portion of my pension which she has recieved locked in a LIF or RIF not sure exactly. I do know that she is entitled to draw on it at this time. Is my ex obligated to draw on this now or can she choose not to because it will lower the amount of SS she is entitled to?

Her position currently is that " Why should i depleat my pension when my ex is capable of paying me SS. Am i wrong to think this is contrary to spouses doing what they can to be self sufficient?
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Old 06-15-2015, 10:12 PM
dinkyface dinkyface is offline
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If ex's were obligated to draw on pensions (or RRSPs) before retirement age, then I think that would turn the SS rules (from my understanding) upside down. So I don't think she is obligated.

Also, after pension is equalised, and when the payor is drawing from pension (partially or fully retired), that income is usually excluded when determining SS. This is to avoid double-dipping, which is where the payee gets the initial share of pension, then also gets SS based in the other share.

In your case, you are talking about the reverse of doubled-dipping i.e. a 'clawback'. Which I think also should be avoided.

Last edited by dinkyface; 06-15-2015 at 10:27 PM.
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Old 06-18-2015, 09:50 AM
tlwa tlwa is offline
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Quote:
Originally Posted by dinkyface View Post
If ex's were obligated to draw on pensions (or RRSPs) before retirement age, then I think that would turn the SS rules (from my understanding) upside down. So I don't think she is obligated.
Thanks dinkyface, I get what you are saying but the reason she is entitled to draw on this pension is becuase she has reached minimum retirement age. I have not as i am 7 yrs younger than her. I have asked a unbias lawyer this question and said she is obligated to draw on it. my Ex's lawyer says no.

there is also my CPP that she is entitle to draw in 5yrs. Can she choose not to draw this as well to keep me paying higher SS?
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Old 06-18-2015, 11:11 AM
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Rioe Rioe is offline
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Personal Opinion - I dislike SS. While there may be a need in some cases to compensate someone for career sacrifices agreed upon during a marriage, after a separation both parties should be expected to support themselves independently instead of relying on SS.

Family Law - however, family law tries to look at a big picture of what would have happened had the family stayed intact. Had you not separated, the pension would not be touched until YOUR retirement, and your ex's age would have been irrelevant. Your income would have continued to support you both, and at your retirement, your pension would have begun supporting you both. Family law sees little reason to deviate from that original plan post-separation.
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Old 06-18-2015, 02:12 PM
dinkyface dinkyface is offline
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Perhaps the lawyer you asked is hoping you will become a client. So they are biased.
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Old 06-18-2015, 04:01 PM
tlwa tlwa is offline
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Ok it took some pounding but I get what the two of you are saying. Do I agree personally? No but that is irrelevant to the court. Thanks

[QUOTE=Rioe;196721]Personal Opinion - I dislike SS. While there may be a need in some cases to compensate someone for career sacrifices agreed upon during a marriage, after a separation both parties should be expected to support themselves independently instead of relying on SS.


I hear you on the SS, it is a broken system that promotes the recipient to do nothing but figure out ways to keep it coming. There are some instances where it is warranted but for the most part it is as you have stated.
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