You may need to know: Canadian Forces Ends Severence Pay

There are important changes happening in the Canadian Forces with regard to their severance pay regime that may affect aspects of your separation and/or divorce.

The military has announced that severance payments, which were previously paid when a member released or retired from the military, would end effective October 1, 2011 or March 1, 2012 depending on the member’s rank.  The member will receive a payout of the severance pay accumulated to that date (there are a number of options for receipt of this payout, which of course have various tax consequences) and after that date no further severance pay will be accumulated.

There is an excellent question and answer page on the National Defence and Canadian Forces website and if this applies to your or your separated/divorced spouse you should contact your family law lawyer.

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