Am I Eligible to Request a Credit Split on CPP?

Jul 2, 2015
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Divorce is difficult, not just because of the immediate personal turmoil, but also because of some of the practical issues that must be dealt with. Divorces can be complicated and stressful when money is a contested issue. Who gets the money? How to split it appropriately? Can one divorcee receive a larger settlement than the other? It’s important to know your rights and to find out what can be done to make this challenging process as simple as possible.

Credit Split on CPP (Canadian Pension Plan)

Something to consider is whether you’re eligible for a credit split on the CPP (Canadian Pension Plan) contributions made while you were together. Such a split can be made even if one partner did not make any contributions during the marriage. You, your former partner, or a lawyer operating on your behalf can apply for a credit split. If you do choose to split your credit, this decision may affect the amount of your CPP benefits both now and in the future. You may also qualify for new benefits as a result.

Credit Split Ineligibility 

According to Service Canada, the following four factors can mean that a couple is ineligible for a credit split:

  • when the total Pensionable Earnings of the former couple, in a year, was not more than twice the Year’s Basic Exemption;
  • for the period before one member of the former couple reached age 18 or after a memer of the former couple reached age 70;
  • for the period when one member of the former couple was a beneficiary of a retirement pension under the CPP or Quebec Pension Plan (QPP);
  • for the period when one member of the former couple was considered to be disabled for the purpose of the CPP or QPP Disability benefit*

When you divorced or separated and whether you were married or common-law can affect your eligibility as well. You must have lived with your partner for at least 12 months. Depending on when your relationship ended, there may be additional factors to consider.

We Can Help!

If you need help working out the legalities of your divorce–financial or otherwise–and you’re in Ontario, consider contacting Galbraith Family Law. We are a team of divorce lawyers serving regions across Ontario including Barrie, Collingwood, Orillia, Midland, Muskoka, and Newmarket. Be safe with Galbraith Family Law.

About Brian Galbraith

Brian Galbraith is the owner and founder of Galbraith Family Law Professional Corporation. Brian is known in the legal community for his commitment to efficiently practicing family law using technology and streamlining the divorce processes.