Married and common-law spouses who cohabited for at least 12 months may apply for equal division of Canada Pension Plan (CPP) credits upon being granted a divorce or legal annulment. CPP credits accumulated during each year of cohabitation will be combined and split equally between spouses. Credits can be divided even if one spouse did not make contributions to the CPP.
Either you or your former spouse can request the CPP credit split. Your lawyer may also make the request on your behalf, provided at least one spouse signs the CPP Credit Split form (ISP 1901). This information is then forwarded to the spouse who did not apply. If either spouse disagrees with any decision concerning the CPP credit split, there is a limited right of appeal.
CPP credit splitting is not available for a period of cohabitation if any of the following apply:
- When the total pensionable earnings of the spouses, former spouses or former common-law partners, in a year, was not more than twice the Year’s Basic Exemption;
- For the period before one of the spouses, former spouses, or former common-law partners reached age 18 or after a spouse, former spouse or former common-law partner reached age 70;
- For the period when one of the spouses, former spouses, or former common-law partners was a beneficiary of a retirement pension under the CPP or Quebec Pension Plan (QPP); and
- For the period when one of the spouses, former spouses, or former common-law partners was considered to be disabled for the purpose of the CPP or QPP disability benefit.
For more information on CPP credit splitting, click here.