How are pensions divided on divorce in Canada?
In most provinces, pensions and RRSPs accumulated during the marriage or cohabitation are family property divided equally on separation. The matrimonial portion is calculated using a time fraction: years of pension accumulation during the marriage ÷ total years of accumulation. For defined benefit pensions, an actuary usually values the pension.
Can I split CPP credits with my ex-spouse in Canada?
Yes. CPP credit splitting allows each spouse to claim half of the total CPP contributions made by both spouses during the period they lived together. This is done through Service Canada, not through the courts. It can affect both spouses' future CPP retirement benefit amounts.
What is an RRSP rollover on divorce?
A tax-free RRSP rollover (spousal rollover) lets one spouse transfer RRSP funds to the other spouse's RRSP or RRIF as part of a family property settlement without triggering immediate tax. The transfer must be made under a court order or written separation agreement. The recipient spouse pays tax when they eventually withdraw the funds.