In years following the year of separation (i.e., where the parties live separate and apart for the entire year), the parent with whom a child lives may claim the AED. Where an AED claim is made, especially for the first time, the tax authorities may well request some documentation to show that the person claiming …
Read MoreGenerally, a person who pays child support is not allowed to claim an eligible dependant amount in respect of that child. However, in the year the parents separate, the parent who pays support has an option. He or she may claim the credit (assuming that no other person is claiming the AED for that child), …
Read MoreFollowing a divorce, a single parent who lives with and supports his or her child may claim what is known as an “amount for an eligible dependant”, or AED, sometimes referred to as the single parent exemption. The rules respecting eligibility for the credit can be confusing and sometimes even arbitrary; it is important to …
Read MoreGenerally, after October 10, 2002, legal fees paid to obtain spousal support or an increase in spousal support amounts, to make child support nontaxable, or to collect late support payments may be deducted by the person who paid the fees. Similarly, legal fees paid to enforce child support orders are deductible. Finally, where a person …
Read MoreMost taxpayers are aware that where monies are taken out of a registered retirement savings plan (RRSP) or a registered retirement income fund (RRIF), tax must be paid on those withdrawals. However, our tax system provides for an exception to this rule in the case of a marriage breakdown. Where former spouses are no longer …
Read MoreOur tax system generally imposes tax consequences where property is transferred between persons related to one another (referred to in tax terminology as non-arm’s length parties) for any amount other than the fair market value of that property. However, different rules apply where property transfers take place as a result of marriage breakdown. Generally, there …
Read MoreThe general rule is that for an amount to qualify as a support amount it must be paid directly to the recipient, and the recipient must have control over how the funds are spent. However, following a separation, it often happens that the person who was, during the marriage, responsible for the payment of certain …
Read MoreWhere marriage breakdown occurs, including the breakdown of a common-law relationship or a common-law partnership, a payment constitutes a support amount and is deductible if all the following criteria are met: the amount must be paid under an order of a competent tribunal or under a written agreement; however, please note that a court order …
Read MoreThe process of separation and divorce forces one to make what seems like an endless stream of decisions, many of which are fueled by emotions. At such a time, the need to make prudent tax and financial decisions often takes second place, leading many down a path where the financial impact of a separation and …
Read MoreWhen divorce physically separates a family, it can be tough to make one-on-one connections. Most families settle on visitation schedules, pickups and drop-offs, and other get-together times with the help of their lawyers before their divorces are final… but even the best-laid plans don’t always work out. When Visits are Impossible Some families turn to …
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