The Canadian Bar Association has published the “Tax Matters Toolkit: Separation & Divorce” to assist separating parties understand potential tax consequences of relationship breakdown.
The Toolkit notes that separation decisions, especially regarding children, property, or pensions, have tax implications and may affect parties’ future finances. To assist in becoming informed of such potential consequences, the Toolkit offers links to various CRA resources.
As well, the Toolkit discusses:
- What documentation to maintain for tax purposes;
- When to notify the CRA of changes in relationship status;
- When to seek advice from a professional such as a family lawyer, tax specialist, or accountant;
- Definitions for terms used in CRA tax returns and forms; and
- Important CRA forms related to separation and divorce, including those regarding changes in relationship status, child custody, or transfers in financial holdings.
For more information, including links and descriptions for the appropriate forms to use, consult the full document here.