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Deferred Profit Sharing Pension Plans
When you complete your divorce or separation, the law requires you to provide your financial statements as well as a disclosure form. This disclosure form serves as a visible record for disclosing private (financial) information. Your Bank Accounts information, Savings, Pensions report, and Securities information are the key sections that are requested to be open in your financial statement. Your DPSP remains marital property until your marriage is legally dissolved. That is, it is a financial plan that can be divided among the partners in accordance with the act.
However, not all legal separations or divorces compel a spouse to divide their DPSP. You and your partner can agree to separate without dividing anything or paying off your debts with other assets of equal value. In both cases, both parties’ deferred savings plans will remain unchanged. Whatever final decision is made regarding the DPSP of both partners in a divorce, and it is strongly advised that it be based on confirmed details, which is where the disclosure form comes into play. As a result, the balance of your DPSP must be indicated on the statement.
Child support is another arrangement in a legal separation where your deferred savings plan would help deal with the calculations. All of your disclosed funding sources, including your income, would be used to deduct the support you begin to pay once the marriage is fully dissolved. Suppose you are a corporate executive (employer, director, or leader). In that case, it may be imperative to include all of your financial sources in your statement, including your employer’s Deferred Profit Sharing Plan.