How are retirement accounts split in a divorce in Ontario?

Retirement accounts in Ontario divorces are typically split 50/50 for the portion accumulated during marriage In Ontario, retirement savings and pension benefits accumulated during marriage are considered family property and must be divided equitably upon divorce. This includes: Registered Retirement Savings Plans (RRSPs) - Can be transferred tax-free between spouses using a T2220 form Company Pensions - The portion earned during marriage is typically split through a pension division order Canada Pension Plan (CPP) Credits - Credits accumulated during marriage can be equally divided Private Investment Accounts - Retirement investments outside registered plans are also divided The division process usually involves calculating the difference between the value at marriage and separation dates. Couples may choose to trade other assets instead of splitting specific accounts, known as "equalization." Working with financial and legal professionals helps ensure a tax-efficient transfer and fair distribution.

"Ontario Divorce: Splitting Retirement Accounts 50/50"

Retirement accounts in Ontario divorces are typically split 50/50 for the portion accumulated during marriage

In Ontario, retirement savings and pension benefits accumulated during marriage are considered family property and must be divided equitably upon divorce. This includes:

Registered Retirement Savings Plans (RRSPs) – Can be transferred tax-free between spouses using a T2220 form
Company Pensions – The portion earned during marriage is typically split through a pension division order
Canada Pension Plan (CPP) Credits – Credits accumulated during marriage can be equally divided
Private Investment Accounts – Retirement investments outside registered plans are also divided

The division process usually involves calculating the difference between the value at marriage and separation dates. Couples may choose to trade other assets instead of splitting specific accounts, known as “equalization.” Working with financial and legal professionals helps ensure a tax-efficient transfer and fair distribution.