There is a fundamental connection between all divorce-related matters, including matrimonial property, spousal support, child support and child custody. An oversight or lack of strategy in one of these areas could affect all of the others, so it is crucial that parties going through a divorce have legal counsel early in the process.
If you have a pension, then it may be a particularly complicated asset to deal with in your divorce. The end of a marriage may come with financial issues that have to be resolved in the short term, and some people choose to unlock the value of a pension to address those issues. However, this option is not appropriate for every situation. The better decision may be to keep the fund intact.
Because retirement plans are funded to protect families’ long-term security, specific government regulations apply when a pension is subject to property division in a divorce. Recent rule changes in Ontario have provided more flexibility in the matter, but dealing with this kind of asset may still require some creative thinking.
Determining the future value of a retirement fund can be a complicated matter requiring legal counsel with experience in asset valuation. It is also important to consider the tax implications of unlocking the value of a pension.
In any case, the entirety of your financial portfolio and that of your spouse must be considered to develop a comprehensive strategy that leads to a fair divorce settlement. Unfortunately, many settlements are unfair, but a divorce lawyer with experience in family law and business law can assess your situation, explain your options and negotiate to protect your financial interests.