Ontario Court Orders Pension Transfer to Satisfy Equalization Payment
August 11, 2026
A recent Ontario court decision highlights the important role pension assets can play in the enforcement of equalization obligations, after the Court ordered that an outstanding equalization payment be partly satisfied by a lump sum transfer to a locked-in retirement account.
The decision in Plummer v. Plummer arose from a dispute over the equalization of net family property following the breakdown of a marriage. The primary assets on marriage breakdown included the respondent's pension and her interest in land in Quebec. The matter proceeded without the respondent's participation, as she did not attend trial and had stopped taking part in the proceedings.
After reviewing the parties' assets and liabilities, the Ontario Superior Court of Justice found that the respondent owed the applicant an equalization payment of approximately $178,487.82. The remaining proceeds from the sale of the matrimonial home were to be applied toward the payment before the respondent's pension was considered.
Because the home sale proceeds were not enough to cover the equalization payment, the Court turned to the respondent's pension to address the remaining balance. The Court ordered that the respondent’s pension be divided at source and transferred in the form of a lump sum to a locked-in retirement account in the applicant’s name. The Court also awarded prejudgment interest due to the respondent’s delay and non-disclosure.
The decision highlights the significant role pension assets can play in family law disputes, particularly where other available assets are insufficient to satisfy an equalization obligation.
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