Who Keeps the Pension After a Common-Law Breakup in British Columbia?
This answer covers the law of British Columbia.
Yes, a pension earned during a common-law relationship can be shared if you qualify as spouses, because family property includes pension entitlements. A spouse's share of pension benefits is determined under Part 6.
Part 6 is available only to spouses who meet the 2-year test; a child together is not enough. Spouses are generally equally entitled to family property, and each has a right to an undivided half interest in it on separation. Whether a specific RRSP or other account is divided depends on its type and your facts.
Excluded property is kept out of the pool. It includes property acquired before the relationship, inheritances, gifts from third parties, and most personal injury settlements. If you claim something is excluded, you must prove it. The increase in value of excluded property since the later of the relationship start and its acquisition is shared, but its starting value is not, except that value received from a discretionary trust is not part of that increase. For a defined contribution account, a spouse may give notice to have their share transferred to their own credit. Time limits apply to these claims, so get advice early.
Key takeaways
- Family property includes pension entitlements, and a spouse's share of pension benefits is determined under Part 6.
- Part 6 pension division is available only to spouses who meet the 2-year test, and a child together is not enough.
- Excluded property such as inheritances and property acquired before the relationship is kept out of family property, but a spouse claiming it must prove it.
- Applications for property or pension division must generally be made within 2 years, and for unmarried spouses that runs from separation.