Pension division and disability benefits in British Columbia

When couples divorce in British Columbia, the former spouse of a person who is receiving a pension may be eligible for a share of that income. In the event that benefits are being paid to the one party because of their disability, special rules apply before a division of that portion will occur.

If an agreement is reached regarding the division of disability benefits, the court will make the agreement a part of its orders. A court may also order the division of disability benefits on its own if no agreement is reached. If the court does not rule on the disability portion of a spouse’s pension, the benefit will be allocated solely to the holder of the pension.

Division of disability benefits in a pension plan will continue until the pension holder spouse passes away or until the disability benefits are terminated according to terms of the plan. The plan member’s eligibility for disability benefits has no effect on how other portions of the pension will be divided by the court.

The division of property may be very complex as well as highly contentious in many divorce cases. When a couple’s property includes different types of holdings, such as retirement and pension accounts, it can be difficult to determine how the assets should be divided. People who have pensions, disability payments and retirement accounts may benefit by seeking the help of a family law lawyer during divorce proceedings. A lawyer may be able to determine whether a client’s benefits are divisible during dissolution of the marriage.

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370