Protection for spouses or common-law partners if they divorce or separate
Maria and John started living together in 1985 when she was 24 and he was 22. John was working in a construction job that was paying him a pretty good salary. Maria was working in a day-care centre.
They were married in 1987. A year after they were married, Maria decided to go back to school to study nursing. She graduated in 1992 and began working in the local children's hospital.
In 1993, John lost his job and was out of work for almost three years. He found work in 1996 but by then the marriage wasn't working and Maria and John decided to go their separate ways.
Following their separation in 1997, John contacted the Canada Pension Plan to apply for a division of pension credits for the time he and Maria lived together. Their earnings from 1985 to 1996 were added together and divided equally between them, as illustrated in Tables 1 and 2 below.
Table 1 shows John's and Maria's records of earnings during the time they lived together. Table 2 shows their earnings after their CPP pension credits were split between them. The last calendar year a couple is together is always excluded from the division.
This "credit split" is a permanent change to both John and Maria's records of earnings. The amount of any Canada Pension Plan benefit that either of them may be eligible for in the future will be based on the revised earnings in Table 2.
| Note: * = Maximum earnings for the year. | |||
|---|---|---|---|
| Year | John’s earnings | Maria’s earnings | Years eligible for credit splitting |
| 1982 | $16,500 | $14,000 | No |
| 1983 | $18,500 | $14,000 | No |
| 1984 | $20,800 | $14,000 | No |
| 1985 | $23,400* | $14,200 | Yes |
| 1986 | $25,800* | $14,600 | Yes |
| 1987 | $25,900* | $14,700 | Yes |
| 1988 | $26,500* | $9,600 | Yes |
| 1989 | $27,700* | $0 | Yes |
| 1990 | $28,900* | $0 | Yes |
| 1991 | $30,500* | $0 | Yes |
| 1992 | $32,200* | $23,500 | Yes |
| 1993 | $22,500 | $33,400* | Yes |
| 1994 | $0 | $34,400* | Yes |
| 1995 | $0 | $34,900* | Yes |
| 1996 | $18,300 | $35,400* | Yes |
| 1997 | $22,500 | $35,800 | No |
| 1998 | $22,900 | $36,300 | No |
| 1999 | $23,500 | $36,800 | No |
| Year | John’s earnings | Maria’s earnings | Years eligible for credit splitting |
|---|---|---|---|
| 1982 | $16,500 | $14,000 | No |
| 1983 | $18,500 | $14,000 | No |
| 1984 | $20,800 | $14,000 | No |
| 1985 | $18,800 | $18,800 | Yes |
| 1986 | $20,200 | $20,200 | Yes |
| 1987 | $20,300 | $20,300 | Yes |
| 1988 | $18,050 | $18,050 | Yes |
| 1989 | $13,850 | $13,850 | Yes |
| 1990 | $14,450 | $14,450 | Yes |
| 1991 | $15,250 | $15,250 | Yes |
| 1992 | $27,850 | $27,850 | Yes |
| 1993 | $27,950 | $27,950 | Yes |
| 1994 | $17,200 | $17,200 | Yes |
| 1995 | $17,450 | $17,450 | Yes |
| 1996 | $26,850 | $26,850 | Yes |
| 1997 | $22,500 | $35,800 | No |
| 1998 | $22,900 | $36,300 | No |
| 1999 | $23,500 | $36,800 | No |
Case study summary - Credit splitting
- 1985 - Maria and John begin living together.
- 1987 - Maria and John marry.
- 1988 - Maria left work to go to university.
- 1992 - Maria back at work.
- 1993 - John loses his job.
- 1996 - John back at work.
- 1997 - Maria and John separate.
- 1998 - CPP pension credits earned during their years together are added together and divided equally between both Maria and John.