One of the numerous amendments to the Family Law Act (the “Act”) as a result of Bill 133 (Family Law Statute Amendment Act, 2009) will change the definition of “Property” under the Act. Property will include the imputed value of a spouse’s interest in a pension plan (not including Canada Pension Plan) for the period beginning with the date of marriage and ending on the valuation date (most commonly the date of separation). According to the new section 10.1 of the Act, the imputed value of the pension interest will be calculated based on section 67.2 of the Pension Benefits Act.
In essence, the valuation of a person’s interest in a pension plan will be provided to spouses directly by pension plan administrators upon the request of either spouse. Up to 50% of a spouse’s pension interest can be paid from the plan itself in accordance with a court order, arbitration award, or Separation Agreement.
These changes should minimize the need for private pension valuations, which can be costly. They also should streamline the process of determining an equalization payment under the Act
