Last time we discussed how LOSAP assets are assets of the sponsoring municipality.<\/p>\n\n\n\n
One ramification of this is when a participant goes through a divorce. Most people are aware of a Qualified Domestic Relations Order, or QDRO, where pension assets are divided. Many try and divide LOSAP assets in the same way.<\/p>\n\n\n\n
But since the assets are municipal assets, a participant doesn’t own them, and therefore cannot assign them to an ex-spouse. Therefore, a LOSAP benefit cannot be assigned in a divorce proceeding through a QDRO or similar procedure.<\/p>\n\n\n\n
However, that doesn’t mean that the spouse cannot claim the LOSAP as a marital asset and use it to trade off on another asset. For example, if the LOSAP benefit is $10,000, and the couple has a car worth $10,000, then the participant could keep the LOSAP and the ex-spouse keep the car.<\/p>\n\n\n\n
Or, the ex-spouse could have the court order the participant to pay the ex-spouse a portion of the LOSAP benefit similar to alimony. However, the participant would be responsible for 100% of the tax liability, so that should be considered when deciding what share of the benefit the ex-spouse should receive.<\/p>\n","protected":false},"excerpt":{"rendered":"
Last time we discussed how LOSAP assets are assets of the sponsoring municipality. One ramification of this is when a participant goes through a divorce. Most people are aware of a Qualified Domestic Relations Order, or QDRO, where pension assets are divided. Many try and divide LOSAP assets in the same way. But since the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,4,5,6,7,8,9],"tags":[],"_links":{"self":[{"href":"https:\/\/www.fireflyadmin.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/219"}],"collection":[{"href":"https:\/\/www.fireflyadmin.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fireflyadmin.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fireflyadmin.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fireflyadmin.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=219"}],"version-history":[{"count":1,"href":"https:\/\/www.fireflyadmin.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/219\/revisions"}],"predecessor-version":[{"id":220,"href":"https:\/\/www.fireflyadmin.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/219\/revisions\/220"}],"wp:attachment":[{"href":"https:\/\/www.fireflyadmin.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fireflyadmin.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fireflyadmin.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}