Is your WSIB pension considered Property in Family Law?
In family law, particularly in divorce or separation cases, the division of property plays a significant role. The Family Law Act (FLA) in Ontario includes a comprehensive definition of "property", which is exceedingly broad. However, it's crucial to understand that there are also some exceptions to this rule.
One such exception is the status of Workplace Safety and Insurance Board (WSIB) pensions. According to a Court of Appeal for Ontario ruling in the case of Lowe v. Lowe, WSIB pensions are not considered "property" under the FLA. This is significant because, in general, pensions are included in the net family property calculation during a divorce or separation. However, the different treatment of WSIB pensions means that they are not factored into this calculation.
In another recent ruling, the Court of Appeal for Ontario in Dembeck v. Wright provided further clarification on what can be considered property. In this case, the court held that for a severance package to be considered property at either the date of marriage or the date of separation, there must be a right or entitlement to it at that date. The court found that accumulated severance under the then Employment Standards Act at the date of marriage was not property owned by the spouse. This is because the spouse had no right or entitlement to severance unless their employment was terminated.
This ruling highlights the nuances that exist within the definition of what constitutes 'property' in family law. It teaches us that not all financial assets or rights accumulated during a marriage are automatically considered property for the purposes of an equalization calculation.
Both these rulings demonstrate the complexity of property division in family law. They underscore the importance of understanding all aspects of your financial situation and how they may be affected by a divorce or separation. If you find yourself in such a situation, you should consider consulting with a legal expert to ensure you understand your rights and obligations, and how your financial assets might be affected.
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