Is a pension equalization claim provable in bankruptcy?

Ontario, Canada


The following excerpt is from Boileau v. Boileau, 2003 CanLII 2288 (ON SC):

In Ramsey v. Profitt, [2001] O.J. No. 4600, Madam Justice MacKinnon held that the claim for pension was not one "provable in bankruptcy" and therefore, was not extinguished by the discharge in bankruptcy. The parties had agreed to a division of the pension in a separation agreement, several years before, but no application had been made by the wife who had later received no notice of the bankruptcy. Given the wording of the separation agreement, Madam Justice MacKinnon found that the non-pension holder was entitled to 1/2 the pension funds on the basis of breach of contract. She also went on to find a resulting trust, as well as a breach of a fiduciary duty. Those facts are clearly distinguishable from those in this case. Equalization Claim is Provable

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