Tax Issues in Separation & Divorce in BC

Author: SiLaw Group Family Lawyers
Date: Mar 30, 2023
Read time: 1 min read

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The Tax Matters Toolkit for clients is published by the Canadian Bar Association's Family Law Section, in collaboration with Justice Canada, the Canada Revenue Agency and Finance Canada. The current version was released in March 2023, replacing the 2018 edition.

This Toolkit is designed to provide assistance to clients who are currently undergoing separation or divorce and to gain a better understanding of how tax regulations could potentially impact your financial situation after separation or divorce.

What the Toolkit Covers

The toolkits delve into different tax credits, benefits and deductions. For example it deals with definitions that are relevant to you after separation, such as what classifies as a "principal residence" by the CRA or how do you approach your RRSPs after separation when buying a new property. The Toolkit provides insight to parties when they are trying to comb through the financial issues in their family law litigation. These include:

• Collaborating with the tax system
• Considering tax implications
• Inquiring for clarification
• Maintaining records and essential details
• Submitting tax documents
• Seeking guidance
• Terminology

CRA Forms After Separation

It also provides a guide on using CRA forms that are important to obtaining a divorce and separation:

• Regarding alterations in marital status
• Concerning alimony payments
• About RRSPs, RRIFs, and SPPs

Because support payments can have tax consequences, you may also want to read our guide to spousal support reviews in BC if your support arrangements may change over time.

Download the Toolkit and Get Advice

Download the Tax Matters Toolkit for clients from the Canadian Bar Association. If you have any other questions or concerns about your financial and tax issue arising from your separation, contact SiLaw Group Family Lawyers and book a free consultation or call us at (778) 381-9977.