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  • what would you do

    I see many people trying to divide assets at the end of a marriage. When my marriage ended, we had no assets - only debt - approximately $60,000. The exception to that is that my ex has a sizeable pension. He was ordered to have a valuation done but I have not yet seen it - but I do expect it to be upwards of $100,000. (at least the portion gained during our marriage)

    So technically our "net worth" at the end of the marriage was around $40,000. So by my best understanding of the law, he should take all the debt and still owe me $20K. Do I have that right?

    So here is my question. I know that a pension is considered an asset and as such it is included in equalization, but it isn't "money" that he actually has or can borrow against. My logic says to just ask for what I am legally entitled to, but he is putting tremendous pressure on my sense of fairness by saying that it's wrong of me to expect half his pension and arguing that he doesn't have it to give. (he has since remarried and his new wife owns a home with a fair amount of equity) I had to serve him court papers to get him to pay child support and he refuses to contribute to section 7 expenses and he certainly doesn't see anything unfair about that. Our incomes are equivalent. He has access every other weekend and half of all holidays. Along with equalization we are disputing primary residency of our kids. I strongly suspect if I offered to go away with no CS and no equalization, he would drop the whole thing.

    So what would you do? Ask for equalization and take the 20K or take your half of the debt and let him keep the pension?

  • #2
    Sk8r,

    most pensions have provisions for division in their rules. Some pensions (Superannuation) will transfer an amount to a locked in retirement savings vehicle of the persons choice.

    http://www.tbs-sct.gc.ca/pubs_pol/hr...#_Toc497204660

    Benefits in the Event of a Separation or a Divorce -
    The Pension Benefits Division Act (PBDA)


    If your marriage or relationship of a conjugal nature breaks down, the pension benefits you have acquired during the course of that marriage or during the period of cohabitation in a relationship of a conjugal nature may, on application, be divided according to the terms of the PBDA.

    Who is eligible for a division of pension benefits?

    Married persons who have separated or divorced, and persons who have lived in a relationship of a conjugal nature for a minimum of one year and have separated, are eligible.

    Either party may apply for a division. To do so, the person must make a formal application, which must be accompanied by a court order or agreement between the parties providing for the division of benefits. If the application is based on an agreement, the couple must have been separated for at least one year.

    What happens if the division is approved?

    If the division is approved, a lump sum representing the share of the value of the benefits being divided will be transferred either to a specified kind of retirement savings vehicle chosen by the party in question, or to a life insurance company to purchase a life annuity. This lump sum can never exceed 50 per cent of the value of the benefits being divided. Your pension benefits will be reduced to reflect that division.

    other plans may be different

    lv

    Comment


    • #3
      thanks LV

      I'll have to look into that. It seems like a viable solution to my "moral" dilemma. I don't want to put him in a position where he cannot support his new family, but I also want to make sure I am looking out for myself and our children.

      Comment


      • #4
        Sk8r,

        don't forget about the CPP credit division.

        see this

        http://www.sdc.gc.ca/asp/gateway.asp...edit.shtml&hs=

        lv

        Comment

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