Marriage or common-law relationship breakdown

Under Nova Scotia pension law, when a pension plan member’s marriage or common-law relationship breaks down, the spouse or common-law partner (as the case may be) may be assigned up to one-half of the pension benefits earned by the plan member during the years applicable to the marriage or the common-law relationship.

It is up to the two parties involved to decide if the pension benefits will be split. However, the Plan will only implement a direction to split the pension benefits upon receipt of either a court order or a separation agreement.

Once the Plan receives valid instructions to split the plan member’s pension, the share of a pension benefit payable to the ex-spouse or ex-common-law partner is paid at the same time benefits are paid to the member (i.e., this will only occur at the date of the member’s retirement, or death, or termination of employment).

Note: As with the splitting of any other assets upon marriage or common-law relationship breakdown, to split pension benefits (or not) may be a major financial decision. If you are involved in a marriage or common-law relationship breakdown, you should consider the advice of your lawyer and your financial advisor before you agree to split your pension.