Is my spouse entitled to part of my pension when we divorce in Ontario?

In Ontario, pensions are treated as property for the purpose of equalization under the Family Law Act. The value of a pension that accrued during the marriage is included in the pension-holder's net family property calculation. This means your spouse does not automatically receive a share of your pension itself, but its value affects the equalization payment.

Calculating pension value for equalization can be complex, especially for defined-benefit plans. You typically need an actuarial valuation to determine what the pension earned during the marriage is worth today. Some pension plans in Ontario allow for a direct division of pension credit between spouses — called a "pension partner benefit division" — rather than a lump-sum equalization payment, which can be useful if neither party has cash to pay the other out.

The rules differ somewhat for federal pensions (such as CPP, federal public service plans) versus provincial plans. How pensions are handled in your specific situation depends on the type of plan, when benefits were earned, and what valuation method is agreed upon or ordered. This is one of the areas where getting a family lawyer involved — and potentially a financial advisor — makes the most difference.