When most couples think about prenups, they picture dividing property, bank accounts, or maybe even spousal support. But one of the most valuable – and often overlooked – assets in a relationship is retirement savings.
Pensions and registered plans like RRSPs, RRIFs, and TFSAs can be worth hundreds of thousands of dollars over time. Deciding how these assets are treated in a prenup can save both partners stress, conflict, and unexpected financial loss in the future.
This guide explains how pensions and registered plans work in Canada, why they matter in prenups, and what to consider when including them in your agreement.
What Are Registered Plans?
In Canada, registered plans are government-recognized savings or investment accounts that come with tax advantages. They’re designed to help Canadians save for retirement or other long-term goals.
Here’s a breakdown of the most common ones:
Pensions
A pension is a retirement plan provided by an employer. There are two main types:
- Defined benefit plans – Guarantee a specific payout at retirement, based on salary and years of service.
- Defined contribution plans – Contributions are invested, and the eventual payout depends on investment performance.
Pensions are often a major marital asset, and they can be subject to division if a relationship ends.
RRSP (Registered Retirement Savings Plan)
An RRSP allows Canadians to save for retirement with tax-deferred growth. Contributions are tax-deductible, and investment income grows tax-free until withdrawal.
RRIF (Registered Retirement Income Fund)
An RRIF is what an RRSP turns into at retirement. It requires regular withdrawals, which are taxable income.
TFSA (Tax-Free Savings Account)
A TFSA allows tax-free growth on investments. Contributions aren’t deductible, but withdrawals aren’t taxed. TFSAs are flexible and can be used for retirement or other financial goals.
Pension vs RRSP
Both pensions and RRSPs are retirement tools, but they differ in structure:
- Pensions are usually tied to employment, with strict division rules if a relationship ends.
- RRSPs are personal accounts, giving more control but also more responsibility.
Why Include Pensions & Registered Plans in a Prenup
Including pensions and registered plans in a prenup is about clarity and fairness. Here’s why it matters:
Risk of Disputes
Retirement savings often become one of the most contested issues in separations. A prenup reduces uncertainty by spelling out how these assets will be treated.
Protecting Premarital Assets
If you’ve built up a pension, RRSP, or TFSA before your relationship, a prenup can protect those premarital assets. Without one, they may be subject to division.
Considerations for Future Spousal Support
Courts sometimes factor in retirement savings when deciding spousal support. A prenup can set out clear expectations about whether retirement assets are considered part of financial support obligations.
Divorce and Pensions
In Canada, pensions are often treated as family property. That means they can be divided between spouses or common-law partners if the relationship ends.
The division rules depend on the province, but generally:
- The value of the pension earned during the relationship is considered divisible.
- Pension administrators may split the pension at source, or provide a lump-sum transfer to the other partner’s retirement account.
This process can be complicated, and without a prenup, couples often face lengthy negotiations – or even litigation.
Including Pensions in Your Prenup
A prenup can specify:
- Whether the pension is separate property (kept by the original owner).
- How to value the pension if division is required.
- Whether any growth on premarital pension contributions is shared.
- How survivor benefits will be handled in estate planning.
By addressing pensions early, couples avoid confusion about what’s marital versus premarital property.
Including RRSPs and Other Registered Plans
Similar to pensions, RRSPs, RRIFs, and TFSAs can all be addressed in a prenup. Couples can decide:
- If existing balances are separate property.
- How contributions made during the relationship will be divided.
- Whether withdrawals used for family expenses should be equalized later.
For example: If one partner uses RRSP funds for a down payment on a shared home, a prenup can clarify how that contribution is credited in case of separation.
Benefits of Addressing Financial Plans in Your Prenup
Covering pensions and registered plans in your prenup gives you:
- Clarity – No surprises about how retirement savings are treated.
- Fairness – Each partner knows what they’re entitled to, and what they keep.
- Efficiency – Reduces legal costs and stress in the event of separation.
- Protection – Safeguards premarital retirement savings and contributions.
- Peace of Mind – Helps both partners plan for retirement with certainty.
FAQs
Are pensions considered part of a prenup?
Yes. Pensions are often included in prenups to clarify whether they’re separate or shared property, and how they’ll be treated if the relationship ends.
What is the difference between a pension and other registered plans?
Pensions are employer-based retirement plans, while RRSPs, RRIFs, and TFSAs are personal savings vehicles. Both can be included in prenups.
Can my RRSP or TFSA be protected in a prenup?
Yes. A prenup can specify that premarital RRSPs or TFSAs remain separate property, while only contributions made during the relationship are divided.
Final Thoughts
Pensions and registered plans are some of the most valuable assets Canadians own – and some of the most contested in separations. By including them in your prenup, you protect both your retirement savings and your relationship.
At Jointly, we make it simple and affordable to create a prenup that covers pensions, RRSPs, TFSAs, and more – so you and your partner can move forward with clarity and peace of mind.
👉 Ready to get started? Visit getjointly.ca today to begin your prenup.
I founded Jointly because I want to empower more Canadians with the knowledge and tools to create relationship agreements that work for them, at a price they can afford. My big dream? That reaching more Canadians with Jointly ultimately keeps more families out of the court system when relationships breakdown, which can be slow, expensive and traumatic. (I may or may not have personal experience with this 😅)
When I'm not lawyering, I'm most likely hiking with my dogs, kayaking the coastal waters around North Vancouver, or hitting the sauna and cold plunge.
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