FAQs Tax Implications

What is the most important tax impact resulting from divorce?

For many couples the most important taxation issue resulting from Divorce is in regards to Spousal Support. The payor of spousal support may deduct any spousal support paid from their income taxes while the recipient must add into their income and pay taxes any spousal support received. This does not apply to child support which is not tax deductible in any circumstances.

In cases where spousal support is not an issue but there is an equalization of net family property which includes a transfer of RRSPs or a matrimonial home it is important to note that these assets can be transferred tax free to a spouse in the event of a separation.

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About the author

Russell Alexander

Russell Alexander is the founder of Russell Alexander Collaborative Family Lawyers and is the firm’s senior partner. At Russell Alexander, our focus is exclusively family law, offering pre-separation legal advice and assisting clients with family related issues, including: custody and access, separation agreements, child and spousal support, division of family property, paternity disputes, and enforcement of court orders. We have locations in Toronto, Markham, Whitby (Brooklin), Lindsay, and Peterborough.

For more information, visit our website, or you can call us at: 905-655-6335.