Divorce doesn’t just affect your home and your family — it can dramatically impact your long-term financial security. Investments, pensions, and registered savings often represent decades of careful planning, and understanding how they are treated under Ontario’s Family Law Act is essential. This overview explains how financial assets are divided in divorce and what steps you can take to protect your retirement and financial future.
What Counts as “Family Property” vs. Excluded Assets
Not all assets are treated the same in a divorce. Understanding which investments are included in net family property — and which may be excluded — is the foundation of protecting what you’ve built.
How Pensions Are Valued in Ontario
Ontario uses specific Family Law Act formulas to calculate the value of pensions for equalization. Knowing how your pension is assessed can significantly affect what you may owe or receive.
RRSPs, TFSAs, and Investment Accounts
Registered and non-registered investment accounts are often among the largest assets divided in divorce. How they are structured, funded, and valued directly impacts how much is shared.
Tracing Pre-Marriage and Gifted Investments
If you entered the marriage with investments or received gifts or inheritances, proper tracing can help preserve those assets from division — but only if the documentation is done correctly.
Stock Options, RSUs, and Executive Compensation
High-earning professionals often have complex compensation packages. Stock options and restricted share units can be difficult to value but may represent a significant portion of marital wealth.
Business Interests and Shareholder Agreements
Owning a business or shares in a company adds another layer of complexity. Valuation methods, restrictions in shareholder agreements, and future earning potential all play a role in how these assets are treated.
Tax Consequences of Dividing Registered Assets
Dividing pensions and registered savings without proper planning can trigger unnecessary taxes. Strategic transfers and rollovers can help preserve more of your money.
Hidden Assets and Forensic Accounting Red Flags
When financial disclosure is incomplete, hidden assets can undermine a fair settlement. Knowing the warning signs and when to involve a forensic accountant can make all the difference.
When Equalization Isn’t Actually Equal
While the law aims for equal division, certain circumstances can justify unequal sharing — especially when pensions, debt, or complex investments are involved.
Strategic Settlement Structures to Protect Retirement
The way a settlement is structured can be just as important as the numbers themselves. Smart negotiation can help protect long-term financial security and retirement income.
Dividing investments and retirement assets in divorce is one of the most financially significant — and legally complex — parts of the process. With the right knowledge and strategy, you can protect what you’ve worked so hard to build and set yourself up for long-term stability.
Join our free webinar, Protecting Investments, Pensions & RRSPs in Divorce, on March 3 at 5PM ET.
