Pensions in Family Law

Pensions are relevant in family law for a number of reasons. These include the issues of income and equalization.

On the income front, a pension in pay is likely an income source for the purposes of calculating support obligations. In other words, individuals receiving a pension may still be obligated to make support payments. Retirement does not signal an automatic end to support payments.

Pensions are also assets which are subject to equalization under the Family Law Act. They have a value for the purposes of one's net family property and we use actuaries (pension valuators) to establish that value. Just like with respect to all other assets subject to equalization, a pension valuator establishes any value the pension had at the date of marriage (for which you get credit), as well as the value of the pension at the valuation date.

In some family law cases, a pension can be both an income source and an asset subject to equalization, which gives rise to the issue of "double dipping". You are encouraged to seek advice on this very interesting but somewhat tricky area of family law.