Pension and Divorce
In Ontario family law proceedings there are guidelines and rules that provide for special treatment of certain personal assets. When it comes to dividing your assets along with those of your ex-spouse, you need to plan. Make sure that you are not too quick with your decisions. Think about who is to get what items and how your assets are identified and divided. Private or public pensions fund investments are one such asset. You will need to pay special attention as you go through the property division process.
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Toronto Family Law Firm
When dealing with your pension and divorce you will need to talk to your ClearWay Law lawyer about your rights under both the Family Law Act as well as the Pensions Benefits Act. These two pieces of legislation interconnect on what your options are concerning how to divide or protect your pensions.
In cases of divorce, the legislation acts to protect your pension prior to the date of marriage as an exempted amount not to be divided between the parties. If you had any sort of pension before tying the knot you will need to contact your pension provider. You will need a valuation of the current value of your pensions. You will also need the available portion for division is based on your exemption.
There are also typically tax issues to will need to be considered. This is important when deciding if your pensions should be divided. You will also need to think about this to provide the equivalent amount of funds to your ex through another source. Most private pensions have penalties on top of steep tax implications if they are cashed in or divided before their set maturation date. What could say on paper amounts to $100,000.00 could end up being closer to $60,000. This may happen after these penalties and taxes are applied to the pension amount.
Alternatively, some pension funds do not allow for cash withdrawals. They might insist that any funds removed from their pension program are to be reinvested in a similar investment. In such scenarios you need to clear as to what you can provide or what you will receive as part of the division of family property. You should make sure you go through your property holdings and any pensions you may have with your ClearWay Law lawyer in order to formulate the best strategy that you can to keep your pensions safe or at least minimally effected by your divorce.
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