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Divorce & Family Law This forum is for discussing any of the legal issues involved in your divorce.

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  #1  
Old 06-12-2013, 08:58 AM
HappyMomma HappyMomma is offline
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Default Do I ever feel dumb.

So yesterday I received a letter from Service Canada informing me that my ex had applied to split my cpp contributions. WTF? Why did I not know about this? I had no idea that this was mandatory. My lawyer never mentioned it!!

I'm pissed because I gave him a huge chunk of my RRSPs (over half) that he wasn't entitled to in order to reach a settlement not knowing that he would be taking half my CPP as well!!!!

I'm angry and I feel very, very stupid.
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Old 06-12-2013, 09:16 AM
DowntroddenDad DowntroddenDad is offline
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Don't feel too bad, whether you knew or not, it doesn't make a difference.

My understanding is that you can apply to split CPP anytime, even if you have signed an agreement saying you won't.

So you could have found out when you retire. Better to know beforehand.
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Old 06-12-2013, 09:22 AM
Mess Mess is offline
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It's not mandatory, but either of you has the option of applying for this.

Basically, the CPP contributions you each made during the period of the marriage are added together, and the the total is split 50/50.

It does not include any contributions from before or after marriage.

The process is fair, but of course one party will end up losing something.
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Old 06-12-2013, 10:00 AM
HappyMomma HappyMomma is offline
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Quote:
Originally Posted by DowntroddenDad View Post
Don't feel too bad, whether you knew or not, it doesn't make a difference.

My understanding is that you can apply to split CPP anytime, even if you have signed an agreement saying you won't.

So you could have found out when you retire. Better to know beforehand.
I think there is actually a 4 year limit to apply. He beat it by a couple of months.
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Old 06-12-2013, 10:04 AM
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I noticed my Sep agreement states that either of us can apply for the split.

Hopefully she doesn't do it. I don't see any benefit in me doing it.
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Old 06-12-2013, 10:07 AM
DowntroddenDad DowntroddenDad is offline
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Quote:
Originally Posted by CSAngel View Post
I think there is actually a 4 year limit to apply. He beat it by a couple of months.
The website makes no mention of a limit to apply.

Canada Pension Plan (CPP) - Credit Splitting Upon Divorce or Separation - Service Canada
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Old 06-12-2013, 10:10 AM
DowntroddenDad DowntroddenDad is offline
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Found something"

Waiver of Time Limit for Applications

In 2007, Bill C-36: An Act to Amend the Canada Pension Plan and the Old Age Security Act amended section 55.1 (1) (c) to provide for a credit split if the application is made within four years of separation, or at any time after that date, so long as both former commonlaw partners agree to waive the time limit in writing. A waiver document exists for this purpose. That means that the process of credit splitting between former partners beyond the four-year deadline would depend on the cooperation of both parties.

Canada Pension Plan Credit Splitting Guide for the Legal Profession | HRSDC
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Old 06-12-2013, 10:29 AM
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Tayken Tayken is offline
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Quote:
Originally Posted by CSAngel View Post
So yesterday I received a letter from Service Canada informing me that my ex had applied to split my cpp contributions. WTF? Why did I not know about this? I had no idea that this was mandatory. My lawyer never mentioned it!!
Don't feel stupid. Generally, this only happens and people only bother with it when there is a long term marriage. Also, in many cases, both parties have employment levels that maximize their CPP contributions. So the 50/50 split equates to nothing being shifted or moved around.

Even people on maternity leave and UI contribute to CPP. So, the movement of CPP credits is so minimal. The only time that it happens is in the legacy "traditional marriages" where one partner stayed at home with children and the other remained employed. This type of relationship is far and few between and in the next 10-15 years will be an anomaly and not the "norm" as it was prior to 1990.

Quote:
Originally Posted by CSAngel View Post
I'm pissed because I gave him a huge chunk of my RRSPs (over half) that he wasn't entitled to in order to reach a settlement not knowing that he would be taking half my CPP as well!!!!
Well, if you were both employed and contributing to CPP then well, the split will be 0$ generally. Unless the other party was not employed for a significant amount of time.

Even more interesting is that by the time most people collect CPP benefits is contemplating if CPP will even exist by that date...

Quote:
Originally Posted by CSAngel View Post
I'm angry and I feel very, very stupid.
Don't. I doubt that it will have any impact on you in the future. You and the other party were employed probably for the majority of your relationship and contributing to CPP probably to the maximum. Also, you will probably live a long and prosperous life and by the time it comes time to collect your CPP benefits that program may have gone bankrupt.

Good Luck!
Tayken
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Old 06-12-2013, 10:41 AM
HappyMomma HappyMomma is offline
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Quote:
Originally Posted by Tayken View Post
Don't feel stupid. Generally, this only happens and people only bother with it when there is a long term marriage. Also, in many cases, both parties have employment levels that maximize their CPP contributions. So the 50/50 split equates to nothing being shifted or moved around.

Even people on maternity leave and UI contribute to CPP. So, the movement of CPP credits is so minimal. The only time that it happens is in the legacy "traditional marriages" where one partner stayed at home with children and the other remained employed. This type of relationship is far and few between and in the next 10-15 years will be an anomaly and not the "norm" as it was prior to 1990.



Well, if you were both employed and contributing to CPP then well, the split will be 0$ generally. Unless the other party was not employed for a significant amount of time.

Even more interesting is that by the time most people collect CPP benefits is contemplating if CPP will even exist by that date...



Don't. I doubt that it will have any impact on you in the future. You and the other party were employed probably for the majority of your relationship and contributing to CPP probably to the maximum. Also, you will probably live a long and prosperous life and by the time it comes time to collect your CPP benefits that program may have gone bankrupt.

Good Luck!
Tayken
Thanks Tayken, that makes me feel better. He was self employed so I thought he hadn't contributed, however, I see now that he had to. I have no idea how much he actually made but with the 'maximum' amount the contributions should be pretty close. Freaked out for nothing.
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Old 06-12-2013, 11:13 AM
momof4 momof4 is offline
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Quote:
Originally Posted by Tayken View Post
Even people on maternity leave and UI contribute to CPP. So, the movement of CPP credits is so minimal. The only time that it happens is in the legacy "traditional marriages" where one partner stayed at home with children and the other remained employed. This type of relationship is far and few between and in the next 10-15 years will be an anomaly and not the "norm" as it was prior to 1990.
Seriously? I had no idea I could apply for this and I was a SAHM for 14 years during our 20 year marriage (4 kids made it unfeasible for me to work). We are waay past the four year mark (separated 2006, divorced 2010) and he will never agree to it... so I guess I am out of luck on this one :-(
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