FAQs Property Division, Sharing & The Matrimonial Home

Will my spouse get part of my pension in cash?

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Written by Russell Alexander ria@russellalexander.com / (905) 655-6335

Where a spouse’s employer-sponsored pension is to be split, the non-member spouse has several options for receiving payment. Your spouse will have to choose between transferring the funds to their personal registered retirement savings plan (RRSP) or Locked-In Retirement Account (LIRA), or leaving the money in your pension fund until they retire, at which point, they will receive monthly payments. Where pension funds are locked-in, the non-member spouse can only transfer their share into their LIRA or similar locked-in RRSP which cannot be accessed until their retirement.

In cases where the pension-holding spouse wants to buy out their spouse’s interest in the matrimonial home, the pension-holding spouse may satisfy payment by way of lump-sum transfer from their pension, provided such is permitted under their pension plan. An equalization payment owed may also be satisfied in much the same way. These scenarios serve as limited examples in which a non-member spouse may be paid in cash from your pension funds.

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About the author

Russell Alexander

Russell Alexander is the founder of Russell Alexander Collaborative Family Lawyers and is the firm’s senior partner. At Russell Alexander, our focus is exclusively family law, offering pre-separation legal advice and assisting clients with family related issues, including: custody and access, separation agreements, child and spousal support, division of family property, paternity disputes, and enforcement of court orders. We have locations in Toronto, Markham, Whitby (Brooklin), Lindsay, and Peterborough.

For more information, visit our website, or you can call us at: 905-655-6335.