In a British Columbia divorce, the value of a pension is split in a specific fashion. For local defined contribution plans, a spouse may have his or her share of the pension withdrawn into a separate account. He or she may also decide to keep his or her share of the pension inside of the plan under the same terms and conditions that the member must abide by.
For defined benefit plans, a separate pension plan may be created for the other spouse who is entitled to a share of pension benefits. A commuted portion of the pension may also be transferred to the credit of a limited member. In the event that a member decides to terminate participation in a defined benefit plan, the administrator of the plan may agree to continue to administer any separate pension created.
In a hybrid plan, it may be possible for a spouse to take benefits in any manner available to the member. In some cases, it may be possible for the spouse to choose how to treat the account assuming that the administrator consents to the spouse doing so. These scenarios assume that the pension has not yet commenced. If it has, a spouse may be entitled to a proportionate share of benefits paid out until the plan is terminated or the individual dies, whichever comes first.
Among other property, the value of assets of a pension is eligible for division. It may be worthwhile to hire a lawyer to determine how to divide any pension plan that exists according to provincial law. In addition, a lawyer can help an individual get their fair share of any other assets during property division. None of the information in this article should be taken as specific legal advice.
Source: CanLII, “Family Law Act, SBC 2011, c 25, Part 6 — Pension Division“, November 01, 2014
Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9