How to Request CPP Credit Splitting After Divorce

When a marriage or common-law relationship ends in Canada, the CPP credits (also called pensionable earnings) that both partners accumulated during the time they lived together can be divided equally between them. This process is called CPP credit splitting. It is designed to ensure a fair division of pension benefits, especially when one partner may have earned less or stayed home to care for children. This guide explains how CPP credit splitting works and how to request it. For background on the divorce process itself, see our guide on the divorce process for newcomers in Canada.

What Is CPP Credit Splitting?

CPP credit splitting is the equal division of the CPP pensionable earnings that both spouses or common-law partners accumulated during the time they lived together. The Canada Pension Plan legislation allows this division so that both partners share equally in the pension credits earned during the relationship, regardless of who earned more.

For example, if you were married for 15 years and during that time one partner earned significantly more than the other, the CPP contributions from both partners for those 15 years would be added together and then divided equally between them. This means the lower-earning partner would receive more CPP credits, and the higher-earning partner would receive fewer.

Who Is Eligible for CPP Credit Splitting?

CPP credit splitting is available in the following situations:

• Legal divorce or annulment: If you are legally divorced, either former spouse can request a credit split. The request is mandatory upon application, meaning it cannot be blocked by a prenuptial or separation agreement.
• Separation of a common-law relationship: If you were in a common-law relationship that has ended and you have been living apart for at least one year, either former partner can request a credit split.
• Separation of a married couple: In some provinces, separated married couples can also request a credit split after living apart for at least one year.

Both parties must have valid Social Insurance Numbers for the credit split to be processed.

How Does Credit Splitting Affect Your Pension?

The impact of credit splitting depends on your individual situation. If you were the lower-earning spouse during the relationship, credit splitting will likely increase your future CPP pension amount. If you were the higher-earning spouse, it will likely decrease your pension. The split only applies to the years you lived together and does not affect credits earned before or after the relationship.

Understanding how this fits into your overall retirement plan is important. The Canada Pension Plan is just one source of retirement income. You may also be eligible for Old Age Security and other benefits.

How to Request a CPP Credit Split

Here is how to apply for a CPP credit split step by step.

Step 1: Obtain the Application Form

Download form ISP-1901 (Application for a Division of Unadjusted Pensionable Earnings) from the Service Canada website. This is the main form you need to complete.

Step 2: Gather Required Documents

You will need the following documents to accompany your application:

• Your Social Insurance Number and your former spouse's or partner's SIN
• Your marriage certificate or proof of common-law relationship
• Your divorce certificate, decree absolute, or judgment of annulment (for married couples)
• Written confirmation that you have been separated for at least one year (for common-law partners)
• The dates you began and ended living together

Step 3: Complete and Submit the Form

Fill out form ISP-1901 completely and accurately. Only one former spouse or partner needs to apply for the credit split. Once you submit the application, Service Canada will notify the other party that a credit split has been requested. Mail the completed form and supporting documents to the Service Canada address listed on the form, or bring them to a Service Canada Centre in person.

What Happens After You Apply?

After Service Canada receives your application, they will review it and determine whether the credit split can be processed. If all the required information and documents are provided, the credit split will be completed and both parties will be notified of the adjusted CPP contributions. The processing time can vary, but you should expect it to take several weeks to a few months.

Provincial Exceptions

Most provinces and territories follow the federal rules for CPP credit splitting. However, some provinces have legislation that may affect how credit splitting works in certain situations. For example, British Columbia, Alberta, and Saskatchewan have provisions that can, in limited circumstances, prevent a credit split for separated married couples who have not yet divorced. Once a divorce is finalized, the federal rules apply and the credit split is mandatory upon request.

If you live in Quebec, note that Quebec has its own pension plan (QPP) with its own rules for credit splitting. You should contact Retraite Quebec for information about dividing QPP credits.

Credit Splitting and Other Benefits

CPP credit splitting can affect other CPP benefits beyond the retirement pension. It can affect CPP disability benefits, survivor benefits, and the post-retirement benefit. If you are currently receiving or planning to apply for any CPP benefits, you should be aware of how a credit split might change the amounts.

For example, if you are applying for Employment Insurance, the credit split will not affect your EI eligibility or payments, as these are separate programs. However, when it comes to filing your tax return, any CPP benefits you receive will be reported as taxable income.

Getting Help with CPP Credit Splitting

If you have questions about CPP credit splitting or need help with the application, you can contact Service Canada by phone at 1-800-277-9914 or visit a Service Canada Centre in person. You may also want to consult a family lawyer, especially if your divorce or separation involves complex financial arrangements. Our guide on how to use Service Canada as a newcomer offers additional tips for navigating government services.

Final Thoughts

CPP credit splitting is an important financial consideration after a divorce or separation. It ensures that both partners share equally in the pension credits earned during the relationship, providing a fairer outcome for the lower-earning partner. The application process is straightforward, but you should understand the implications for your future pension before proceeding. Whether you are the one requesting the split or being notified of a request, knowing your rights and options will help you make informed decisions about your retirement planning.

WelcomeAide is here to support newcomers navigating important life events in Canada. Use our AI Newcomer Navigator for personalized guidance, explore our blog for more newcomer resources, learn about our mission, or discover how to get involved in supporting newcomer communities across Canada.