FAQs Tax Implications

I’m getting divorced. How does this affect my taxes?

If you and your spouse have agreed to spousal support payments or have a court order in respect to spousal support, it is important to understand a few things.

Firstly, the spouse paying support is allowed to deduct the amount they pay in spousal support from their income taxes. Secondly, the spouse receiving support is required to add this amount to their total income, as well as pay taxes on the amount received.

However, child support does not fall under these rules, and is never tax deductible.

Finally, if your divorce includes an equalization payment that incorporates a transfer of the matrimonial home or RRSP’s, these are transferred without tax consequences to the recipient spouse.

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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.