How to Divide BC Pensions at Separation? Vancouver Family Pension Lawyer Explains

How to Divide Bc Pensions at Separation? Our Vancouver Family Pension Lawyers want you to know that BC Pensions often prove to be a valuable matrimonial asset, an asset sometimes overlooked at separation. Your spouse may have been accumulating pension for years before separation, and its worth can be a fortune. You need to be aware of your rights under the BC Family Law Act to assess how much of the BC pension you are entitled to.

How to Divide BC Pensions at Separation?

If the BC pension accumulated during the marriage or cohabitation, the answer is likely a YES!

A pension will be divided as family property unless subject to the exclusions in the BC Family Law Act. This means that whatever you accumulated before the marriage of cohabitation will not be divided, but whatever BC pension you accumulated during the marriage or cohabitation will be divided 50/50 (likely).

Pension division is a complex area under the BC Family Law Act; however, broadly speaking:

1. the nature of the pension and;
2. whether the pension has commenced or not, i.e. a matured pension or a pension that has not matured,

Play a key role in how to divide BC Pensions.

BC Matured Pension vs. BC Pension that has not Matured

If the BC pension has not matured, you will need to hire a BC Pension Actuary to value the pension and determine what your half share of the pension is. This can be a public pension, a municipal pension or any other pension.

In most cases, the worth of the pension is determined, and then half of the worth is transferred to the other spouse by way of cash or RRSPs.

BC Matured Pension and Division at Separation

If the pension has matured, the pension is usually received by the other spouse in a monthly income stream. This extra monthly amount can affect spousal support, which is another whole blog post in itself. The subject is very complicated, and you will need to speak with a top-rated BC Family Lawyer to find out more.

A pension is usually divided by the Plan Administrator. This means that the organization that provides the pension will need to divide it, not you. Be careful about what form you use to divide BC pensions:

1. Provision of a certain form gives the plan administrator notice of the requirement to provide information to the spouse regarding the pension balance, for the ex.
2. It also triggers a requirement on the administrator’s part to divide the pension within a specific time frame.
3. It provides the plan administrator with instructions on how the pension will be divided.

If you like to settle your case, there are many options you can use to divide your pension. These include:

1. Agreeing to a higher amount of spousal support instead of dividing your BC pension;
2. Agreeing to pay cash in exchange for dividing your pension;
3. Agreeing to pay your spouse half of your pension once it is matured;
4. Agreeing to release your spouse from paying you on the specific property in exchange for not having to divide your pension.

Pensions are a highly complex area of BC Family Law. Before deciding what to do with your BC pension, talk to our top-rated BC Pension family lawyers* to find out the best options and ways to deal with your pension. Call us at 604-974-9529 or email [email protected] for more information. 

*Leena Yousef is rated as the number one family lawyer in British Columbia by Lawyerratings.com and as the top 3 best lawyers in Vancouver by the threebest.com.Also voted as the best Vancouver family law firm in Vancouver by Top Choice Awards.