Deciding to split is hard enough as it is, WITHOUT the stress and worry of what to do come tax season. Fear not, ABB’s got you covered! Check out our list of things that you’ll need to consider this spring.
#1: Proof of Separation
The taxpayer has the responsibility of proving separation to CRA. This is relevant for a number of deductions, non-refundable tax credits, benefits etc. that you may be entitled to, including:
Working Income Tax Benefit
Canada Child Tax Benefit
Eligible Dependent Credit
Child care expenses
Want to learn more about validating your eligibility for benefits and credits? Check out CRA’s overview here: https://www.canada.ca/en/revenue-agency/services/child-family-benefits/validating-your-eligibility-benefits-credits.html
#2: Spousal Support
First, let’s talk about what qualifies as “spousal support” payments. Spousal support payments must have the following characteristics:
The payer and the recipient mist be living separate and apart due to a relationship breakdown at the time the payment was made.
Payments are for the maintenance of the recipient
The recipient can decide how the money will be spent
The payments are made periodically (Ex. Quarterly, monthly, weekly)
The terms and schedule of payments are set
Divorces are hard. Plain and simple.
Especially when kids are involved.
Co-parenting and making sure your children are always the focus can be a challenge for most couples. How do you make sure everyone is on the same page and wants the same things for your children, when you’re no longer together?
With help from The Canadian Bar Association, we’ve put together a list of 4 books that can help guide you through the process.
1. Putting Children First: Proven Strategies for Helping Children Thrive through Divorce, JoAnne Pedro-Carroll
Provides information about children’s experience of separation and the potential impact of separation on children, and discusses how to talk to children and help them prepare for separation, how to support children’s resilience and how to create parenting plans.
2. Befriending Your Ex After Divorce: Making Life Better for You, Your Kids and, Yes, your Ex, Judith Ruskay Rabinor
Discusses how parents living apart can develop and maintain a healthy, functional relationship to help them raise their children together after their separation.
3. Parents Are Forever: A Step-by-Step Guide to Becoming