Only the portion of your LIRA that accumulated during marriage is typically divided equally.

In most Canadian provinces, LIRA assets are divided according to the “matrimonial portion” principle. This means only the growth that occurred during your marriage is divided, not the whole account. To calculate this, the value at the date of marriage is subtracted from the value at separation, and the resulting difference is what’s divided equally between spouses.

The actual division can be done through:

• Pension division orders to split the account
• Lump-sum equalization payments where one spouse keeps the LIRA and pays the other
• Tax-free transfers of the required portion to the spouse’s retirement account