In Canada, pensions are generally considered to be “property” and not “income” under provincial matrimonial property law.  This is true even if the plan member is retired and the pension is in pay.


If a marriage ends, then as a general rule each party is entitled to half of the total property acquired during the marriage.  This is called “equalization” or “sharing” of matrimonial property.  Contrary to popular belief, this does NOT mean that the pension must be divided in half.  In many provinces, each spouse is entitled to half of the total family property, not half of each individual asset.


In some provinces, pensions are rarely divided.  Elsewhere, pensions are almost always divided.  There are significant financial ramifications to a pension division, both for the plan member and for the spouse.  It is not a settlement approach that should be taken lightly.  In particular, both parties (the plan member and the spouse) should get advice from an expert before agreeing to a lump-sum transfer from a pension plan to a Locked-in Retirement Account (LIRA).

Review of Administrator's Family Law Valuation (Ontario pension plans only)

It’s usually advisable to confirm the value of the pension BEFORE deciding how matrimonial property will be equalized.  In Ontario, most (but not all) pension administrators are required by law to calculate the Family Law Value of a pension if asked.  We will review and verify the administrator's Statement of Family Law Value if you wish.  To do so, we’ll need a copy of the Statement of Family Law Value and also a recent regular annual pension statement.

Pension Valuation Report

Elsewhere across Canada (and sometimes in Ontario), it is an independent actuary who will determine the value of the pension for matrimonial property purposes.  Here’s a list of the External link opens in new tab or windowinformation we need if you want us provide you with a pension valuation report.

Income Tax Adjustment Report

Any value provided by a pension administrator will be a "before-tax" amount, but it is an "after-tax", cash-equivalent value that is usually required if you intend to equalize matrimonial property without splitting the pension.  If you want us to provide an income tax adjustment or contingent tax liability calculation, here's the External link opens in new tab or windowinformation we need.