We’re married. What happens to our pensions if we separate or divorce?
Question & AnswerWe’re married. What happens to our pensions if we separate or divorce?
3. Calculate the equalization payment
Each pension is only one piece of property that needs to be considered in calculating each partner’s (NFP). You can’t look at just the pension value alone, you have to include the pension value in each person’s NFP.
You need to calculate each person’s NFP to see what the law says about how to divide your property.
If you have a pension, you can also list your future tax liability on your when calculating your NFP. To do this, you may need an accountant to calculate your future tax rate.
The law says married people are entitled to an unless they agree otherwise. Most people will at least use the equalization calculation as a guide before deciding if they want to agree to something different.