When a marriage ends, dividing a family’s wealth is not always about what is in the bank today. It is also about future financial security. If you or your divorcing spouse has pensions or employer-sponsored retirement plans, these assets will be analyzed in detail during the divorce process. In high-net-worth cases, these plans could be both valuable and complex when it comes to property division.
At The Riley Divorce & Family Law Firm, our team of divorce lawyers could guide you through the process of dividing pension and retirement benefits in an Oakville high-asset divorce. Our experienced divorce lawyers could help you better understand the complexities surrounding the division of assets so you may move forward with clarity and confidence.
In Ontario, the Family Law Act governs the equalization of net family property. This includes the value of pensions and retirement accounts accrued during the marriage. A defined benefit pension, a defined contribution plan, or other registered savings may each be subject to the equalization of property.
The spouse who accrued the pension is not required to directly split the pension. Instead, its value is calculated by an actuary, and that amount is included in the equalization process. A spouse may then owe an equalization payment to the other if there is an imbalance in overall net family property.
Our firm works with pension valuators and financial experts to ensure that every asset in a divorce is disclosed and accurately valued. In high-asset divorces, it is important to have a team of Oakville lawyers who understand how these pension and retirement benefits may be divided to help you work toward a fair split.
For dividing certain pensions, such as those held by government employees, educators, or health care workers, there are additional rules under the Pension Benefits Act. A spouse may elect to receive their share of the value directly from the pension administrator once it is divided.
However, this process requires a court order or a separation agreement. In addition, there should be an official pension valuation from the retirement plan’s administrator in Oakville to ensure proper division in a high-net-worth divorce. We help our clients navigate the application and approval process, ensuring that all paperwork is handled accurately and on time while advising you on the best options for you.
In high-net-worth households, couples may have multiple retirement accounts. In Ontario, these may include a Registered Retirement Savings Plan (RRSP), Locked-In Retirement Account (LIRA), or an employer stock plan. These may be considered joint property if contributions were made during the marriage.
Unlike workplace pensions in Oakville, dividing these high-asset retirement accounts and their benefits may use direct transfer, without tax penalties. However, this must be done correctly. Timing, tax deferral strategies, and financial planning matter when negotiating these terms. Our team understands how to assess future tax consequences and how these assets will support your future.
Dividing retirement assets in divorce is about retaining the resources you need to maintain your lifestyle and meet your financial goals. Whether you built your career over decades or supported a spouse who did, your contributions should be fairly recognized. At The Riley Divorce & Family Law Firm, we take a strategic approach to high-asset divorces. With a whole team of lawyers and 24-hour availability, we will help you evaluate your options with confidence. Schedule a time to talk to a member of our team about dividing pensions and retirement benefits in an Oakville high-asset divorce today.
The Riley Divorce & Family Law Firm
