Separation agreements and pensions: Courts take notice

Reasons for judgement were recently released in the case Tarr v. Tarr. The parties, married for almost 40 years, separated in 2002 and concluded a separation agreement and divorce in 2007. The former husband remarried in 2008, and died in 2010.

The Plaintiff (widow) sued the Estate, claiming under the separation agreement that the ex-wife had relinquished her entitlement to her late ex-husband’s pension. The husband had chosen a “joint life” pension, under which benefits are payable only after the second member of the couple passes.

The Plaintiff was successful. The Court noted that the parties to the Agreement had each had legal advice, and that the Agreement was clear. Since the Court will closely examine a separation agreement whether in a divorce or an Estate situation, parties should carefully consider all possible outcomes with respect to pension benefits – before signing.

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