Separation
& Divorce
FOR LAWYERS
TAX MATTERS TOOLKIT
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
Tax Matters Toolkit: Separation and Divorce (for lawyers)
March 2014 (revised May 2022) © Canadian Bar Association
66 Slater St., Suite 1200, Ottawa, ON, Canada, K1P 5H1
Tel.: (613) 237-2925 / (800) 267-8860 / Fax: (613) 237-0185
www.cba.org
Produced by the National Family Law Section of the Canadian Bar Association with funding from the Department
of Justice Canada.
The information in the Toolkit covers federal tax rules under the Income Tax Act and other federal legislation. The
information in the Toolkit needs to be considered in context with provincial tax rules as well.
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TABLE OF CONTENTS
SEPARATION AND THE CANADA REVENUE AGENCY ................................................................ 5
Filing the T1 Annual Income Tax Return
.........................................................................................5
Notifying CRA of a change in marital status
...................................................................................6
Documents supporting Change in Marital Status
......................................................................... 7
When are you Living apart?
............................................................................................................... 9
Same house/separate living quarters
.......................................................................................9
Couch surng/no new xed address
........................................................................................ 9
DEDUCTION FOR LEGAL FEES
.................................................................................................... 10
Legal basis for deduction of legal fees
..........................................................................................10
CRA approach
....................................................................................................................................11
“PRINCIPAL RESIDENCE” RULES
................................................................................................ 12
“Principal residence” criteria
...........................................................................................................12
Issues at time of separation or divorce
.........................................................................................13
SPOUSAL SUPPORT
..................................................................................................................... 14
Characteristics of spousal support
................................................................................................15
Spousal support paid before there is a written agreement or court order in place
............15
“Specic Purpose” and Third-Party Payments
.............................................................................16
How to notify CRA of spousal support payments
.......................................................................16
Spousal support payers – Deductions for spousal support payments
...................................17
Spousal support recipients – Reporting spousal support payments
......................................19
Spousal support payers – reducing taxes withheld at source
..................................................20
Spousal support recipients – increasing taxes withheld at source
..........................................20
Deductions for the payer – year of relationship breakdown
....................................................21
ARREARS AND LUMP-SUM PAYMENTS
..................................................................................... 22
Tax impact of a lump-sum payment on the payer
.....................................................................22
Qualifying Retroactive Lump-sum Payments (QRLSP)
...............................................................23
Tax impact of a QRLSP on the recipient
........................................................................................23
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
CHILD SUPPORT ........................................................................................................................... 24
Tax treatment: written agreements and court orders from before May 1997 .....................24
Federal Child Support Guidelines ..................................................................................................24
CHILD BENEFITS ........................................................................................................................... 25
Canada Child Tax Benet.................................................................................................................25
Child Disability Benet .....................................................................................................................26
Eligible dependent credit .................................................................................................................26
Child Care Expense Deduction .......................................................................................................27
Tuition, Education, and Textbook Credit ......................................................................................28
PENSIONS ..................................................................................................................................... 29
Canada Pension Plan ........................................................................................................................29
CPP: credit splitting ...........................................................................................................................29
CPP: end of pension sharing ...........................................................................................................30
Payment of taxes at source when pension plan benets paid ................................................30
REGISTERED RETIREMENT SAVINGS PLANS (RRSPS) AND REGISTERED RETIREMENT INCOME
FUNDS (RRIFS) .............................................................................................................................. 31
Transfer of RRSP or RRIF funds to a former spouse or common-law partner ......................31
APPENDIX – DRAFT TAX LETTER ................................................................................................ 33
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Separation and the Canada Revenue Agency
A taxpayer’s marital status can aect the amount of benets and credits they receive as
well as how they le their annual tax return.
Filing the T1 Annual Income Tax Return
Taxpayers tick the box on their T1 Income Tax Return that applies to their marital status on
December 31 of the year for which the taxes are being led.
• Separated means that the taxpayer has been living apart from their spouse or
common-law partner because of a breakdown in the relationship for at least 90
days.
• Once they have been separated for 90 days because of a breakdown in the
relationship, the eective date of the separated status is the day they started living
apart.
• If the taxpayer les the return before the 90-day separation period is over and that
period includes December 31, they enter the marital status as married or living
common-law, as applicable.
• If, after ling the return, the taxpayer continues to live separate and apart from their
spouse or common-law partner and have lived this way for at least 90 days, they
must complete Form RC65, Marital Status Change. The date of the start of the 90-
day period is the date of separation.
• They must also le an amended return to adjust their entitlement for any credits
claimed or to apply for credits that they may not have been entitled to when they
were married or living common-law.
• Divorced means that the taxpayer is legally divorced from the former spouse.
Did you know...
Taxpayers are still considered to have a spouse or common-law partner if they
separated involuntarily and not because of a breakdown in their relationship. An
involuntary separation could happen when one spouse or common-law partner is
living away for work, school or health reasons, or is incarcerated.
Resources
z Completing the Income Tax Return when separated or divorced
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
Notifying CRA of a change in marital status
Aside from notifying CRA in the T1 Income Tax Return each year, a taxpayer must notify
CRA of new marital status by the end of the month following the month in which
marital status changed, as it may impact the amount of child tax benet, GST/HST credits
or other benets. If a taxpayer’s status changed in March, for example, they must tell CRA
by the end of April.
Taxpayers (or their authorized representative) must notify CRA if:
• The taxpayer marries
• The taxpayer enters a common-law relationship
• The taxpayer separates for more than 90 days due to a breakdown in the
relationship
• The taxpayer divorces
• The taxpayer’s spouse or common-law partner dies
CRA will recalculate benets based on the new marital status and adjusted family net
income. The adjustment will start the month after the marital status changed.
Taxpayers (or an authorized representative on their behalf) can notify CRA of the marital
status change by
• ling Form RC65, Marital Status Change
• signing into MyAccount, MyBenets CRA web app or MyCRA web app
• phone
• mail
Taxpayers may also wish to le Form T1213 Request to Reduce Tax Deductions at Source
or TD1 Personal Tax Credit Return when there has been a change in marital status.
Resources
z Form RC65, Marital Status Change
z Representative Authorization
z Form T1158 Registration of Family Support Payments
z Form T 1213 Request to reduce tax deductions at source
z Form TD1 Personal Tax Credit Returns
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Documents supporting Change in Marital Status
Basic tax rule: It is up to the taxpayer to provide CRA with documents supporting a change
in marital status
The supporting documents help CRA to determine the date and fact of separation which is
relevant to deductions, non-refundable tax credits, tax credits, and benets including:
• child care expenses
• eligible dependent credit
• Canada Child Tax Benet
• Working Income Tax Benet
• GST/HST credits.
CRA considers the date of separation as a question of fact to be determined on a case-by-
case basis and will require more information or supporting documentation from a taxpayer
when it has contradictory information on le.
A separation agreement or a court order is not always sucient proof of the date or fact of
separation, especially when it does not show separate addresses for the separated parties.
The taxpayer has the responsibility of giving adequate information and documentation to
CRA.
The documents should show that there has been a change to the taxpayer’s situation.
For example, a rental agreement showing names of both the taxpayer and the spouse or
common-law partner, and another dated after the separation in the taxpayer’s name only
is an example. Documents that may assist are:
• A separation agreement/divorce decree with dierent addresses for the former
spouses/common-law partners for the period under review
• Documents with a current address, such as:
– property tax bills
– mortgage papers
– rental or lease agreement
– insurance policies
– household bills (gas, electricity, cable television, telephone)
– medical or dental plan
– registered retirement savings plan or employment pension plan
– driver’s license or vehicle registration (front and back)
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
– car insurance
– credit card statements
– any other document or information that shows a change to the taxpayer’s marital
status
If the taxpayer cannot provide any of these documents, CRA will accept a letter from
two dierent third parties who have personal knowledge of the taxpayer’s
situation during the period being reviewed. The letter must include:
• name and signature of the writer
• profession of the writer
• writer’s contact information, including address and telephone number
• dates of the period(s) of separation.
Examples of third parties who can write the letter:
• employer
• landlord
• social worker
• school authority
• band council
• shelter or community support organization
• resettlement worker/sponsor
• insurance company
• clergy
• medical doctor or nurse
• lawyer or Quebec notary.
Note: Lawyers may have only indirect information about the separation of a couple and
may not be able to provide all the information required by CRA.
Resources
z Supporting Documents
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When are you Living apart?
Same house/separate living quarters
CRA generally does not consider taxpayers separated until separate residences are being
maintained by both parties, but sometimes parties remain in the same residence and,
when that is the case, CRA will generally not consider a separation to have occurred.
However, there are exceptions: CRA may consider a taxpayer separated and living apart
even while living in the same residence if that residence has personal self-contained
quarters and if they don’t share parenting and nancial responsibilities.
Also, even when sharing parenting and nancial responsibility, CRA may consider the
taxpay separated. These exceptions are granted following a fact based analysis and on a
case-by-case basis, as was addressed in R v Aukstinaitis 2008 TCC 104.
Facts that could be considered include:
• the individuals have two distinct households within the home with separate
entrances and separate kitchens, bathrooms, bedrooms, etc.
• meals are not taken together
• absence of joint social activities or only those done jointly involve coparenting;
• not presenting themselves in public as a couple
• absence of sexual relations
• each individual runs a separate household and makes independent nancial
decisions
• why the parties are in the same residence (i.e., nowhere else to go, coparenting
reasons).
Couch surng/no new xed address
When, after a relationship breakdown, one of the parties does not move into a permanent
new home and instead stays with friends or family or moves around, it becomes more
dicult to obtain the supporting documents outlined by CRA to determine the change in
marital status. This is where the Letters from Third Parties may be of assistance, especially
if there is a social worker, shelter, community support organization, or resettlement
worker/sponsor involved.
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
Deduction for Legal Fees
Basic tax rule: Legal fees relating to establishing the amount of support, increasing support,
or defending against a reduction in support are tax deductible for the support recipient in
the year they are incurred. Legal fees paid by the support payor are not tax deductible.
CRA nds that, for the payer, legal fees are a personal or living expense. They have not
been incurred to produce income from a business or property and do not meet the
necessary test for a deduction in the Income Tax Act. Paragraphs 18(1)(b) and (h) of the Act
state that amounts are not deductible to the extent that they are “on account of capital” or
are “personal living expenses”.
Legal basis for deduction of legal fees
Although the Income Tax Act does not specically mention the deductibility of legal fees,
the Federal Court of Appeal has held that the “right to support, once established by a
court, is ‘property’ within the meaning of subsection 248(1) of the [Income Tax] Act, and that
income from such support constitutes, in the hands of the person receiving it, income from
property” (Nadeau v M.N.R., 2003 FCC 400, at para 14). Support payments are a pre-existing
right of a spouse or child. The right to support exists as a function of common and civil law.
Legal fees incurred do not establish the right to support. Rather, legal fees are incurred to
establish or enforce the amount of support a recipient is entitled to.
So, legal fees incurred to obtain or increase support are considered incurred to produce
income from property and may be deducted from income. This is the case even when the
support amount is exempt from taxation, as is child support in most situations.
Specically, paragraph 18(1)(a) of the Income Tax Act allows a taxpayer to deduct from
business or property income expenses incurred for the purpose of “gaining or producing”
business or property income. This also means only the support recipient is entitled to
deduct a portion of their legal fees against their own income. A person paying legal fees on
behalf of a support recipient is not entitled to deduct legal fees paid on behalf of someone
else against their own income.
Because paragraph 18(1)(a) requires that the expenses be incurred to “gain or produce”
income, or to enforce a pre-existing right to income, the support payor has no legal basis to
deduct legal fees. Only a party receiving income (in this case, support payments) may claim
deductions for expenses incurred to establish or enforce their right to income. Because the
deductibility is based on receiving income, independent of gender or other enumerated
grounds, it does not oend s. 15(1) of the Charter.
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CRA approach
CRA interprets paragraph 18(1)(a) to mean that legal fees are NOT deductible when they
are incurred to establish a right to:
• obtain a separation or divorce
• establish child custody or visitation.
Legal fees incurred to exercise a pre-existing right ARE deductible. This includes legal
fees incurred by the support recipient to:
• collect late spousal or child support payments
• establish the amount of spousal or child support payments from a current or
former spouse/partner or the legal parent of his/her child
• increase the amount of spousal or child support
• defend against the reduction of spousal or child support.
These legal fees may be claimed on Line 22100.
When there is a written agreement or court order for child support made before May 1997,
a recipient may deduct, on Line 23200 of his/her return, legal fees incurred to try to make
child support payments non-taxable.
Resources
z Support Payments, Income Tax Folio S1-F3-C3 at 3.78 to 3.84 eective May 16, 2019
z Grenon v Canada, 2016 FCA 4 (leave to Supreme Court denied in 2016 CanLII 41074
z Nadeau v M.N.R., 2003 FCC 400
Notes:
• The deduction for legal fees relating to child support are permitted even though
tax rules do not require child support payments to be included in the recipient’s
income.
• Legal fees to obtain a lump-sum payment may only be claimed as a deduction when
the lump-sum payment covers arrears for periodic payments of support.
• Court-awarded costs must be subtracted from a recipient’s deduction claim for legal
fees paid to a lawyer.
Recipient clients need a billing statement from their lawyer which separates out the fees
for legal services which are eligible for the deduction from the fees for other legal services
which are not. Lawyers may also provide a letter outlining the total legal fees paid in
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
the year with an estimate of what portion/percentage of legal fees related to deductible
categories.
Deductibility of legal fees is not tied to the recipient’s success in a claim for child or spousal
support. For example, where a recipient unsuccessfully defends against a reduction in
support and the support is reduced, the recipient is still entitled to deduct his or her legal
fees.
Payors may be upset when they learn that their legal fees are not deductible on their T1
Return when the recipients’ are. This may aect negotiations.
In shared parenting arrangements using s. 9 set-o child support calculations, the
Agreement or Order may be worded so that both parents have a child support obligation
to the other. The Eligible Dependent Tax Credit can then be shared between parents. A
“payor” is ineligible to claim the credit; however, this ineligibility does not apply if both
parents have an established obligation to pay support to the other. The corollary of this is:
if both parents are “payors”, both parents must also be “recipients”. As such, both parties
may be entitled to claim a deduction for legal fees. However, as of the date this Toolkit was
prepared, there are no reported decisions on deducting legal fees when both parties are
payors and recipients.
“Principal Residence” Rules
Basic tax rule: A property that was a principal residence for every year that it was owned
may be sold at a prot without any capital gain needing to be report on a T1 Return.
“Principal residence” criteria
A property must be owned by one or both of the spouses/common-law partners to be
considered their principal residence for tax purposes.
The following types of property could qualify as a principal residence:
• a housing unit, which CRA has accepted could include:
– a house;
– an apartment or unit in a duplex, apartment building or condominium;
– a cottage;
– a mobile home;
– a trailer; or
– a houseboat;
• a leasehold interest in a housing unit; or
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• a share of the capital stock of a co-operative housing corporation, if such share is
acquired for the sole purpose of obtaining the right to inhabit a housing unit owned
by that corporation.
According to the Income Tax Act, a couple may have only one principal residence in a given
year. So long as the taxpayer or by his or her spouse or common-law partner, former
spouse or common-law partner, or child have “ordinarily inhabited” the property at some
point during the year and it is not owned to gain or produce income, it can be designated
as the principal residence by including the appropriate forms on the taxpayers Income Tax
Return.
For example, Robin and Claire own a home in the city and a cottage. They usually spend a
month at the cottage every summer and go there on weekends throughout the year. They
do not rent out either property. For any tax year, they can designate either their city home
or their country cottage as their principal residence as they are considered to “ordinarily
inhabit” both properties.
Robin and Claire decide to sell their cottage property. It has increased in value by $200,000.
On the other hand, their city home’s value has remained constant since they bought it and
they believe this is unlikely to change because of the neighborhood. It would probably
be benecial for Robin and Claire to designate their cottage property as their principal
residence. No capital gains tax would be owing on the prot made when they sell it.
Issues at time of separation or divorce
Tax issues relating to the designation of a principal residence most often arise for
separating or divorcing spouses/common law partners when:
• they own more than one property;
• the time between the breakdown of the relationship and a court order or the
signing of a written separation agreement is lengthy and property values have risen
signicantly;
• one party remained in the principal residence and the other party bought a new
home after marriage breakdown but before a court order or written separation
agreement was in place.
Until there is a written separation agreement or a court order, CRA requires the spouses/
common-law partners to designate the same property as their principal residence for the
year.
When the spouses/common-law partners have been living separate and apart throughout
the year and there is a written separation agreement or court order, each party may claim
a dierent principal residence. After separation, CRA recognizes two households instead
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
of one, and therefore it is possible for each ex-spouse to own one tax- exempt principal
residence.
It’s important to note that, with the exception of the matrimonial home, property brought
into the marriage by one of the spouses will be considered owned by that individual and
assigned to that person during the negotiation of the separation agreement. Rules can
dier by province.
Since no capital gains tax results from the sale or deemed disposition of a principal
residence, the decision as to which property to designate as a principal residence can
have signicant tax consequences. The tax impact may be a factor in determining a fair
distribution of the assets of the marriage or common-law relationship.
Note: A principal residence is considered a “personal-use property” and there can be no
capital loss claimed should it sell for less than its original purchase price.
Resources
z Form T2091, Designation of a Property as a Principal Residence by an Individual
(other than a Personal Trust)
z Form T2091(IND)-WS, Principal Residence Worksheet
z Section 54, Income Tax Act, denes “principal residence”
z Disposing of your principal residence
z Income Tax Folio, S1-F3-C2, Principal Residence
Spousal Support
Basic tax rule: The person who makes spousal support payments may deduct the amounts
paid from income, generally reducing taxes owing. The person who receives spousal
support payments must include the amounts as income and may have to pay taxes on
that income. This must be done even if the person making the payments does not take
advantage of the deduction.
Note that when there is a child (children) and a written agreement or court order provides
a global amount for support – without specifying the part of the amount that is for spousal
support – the full amount is considered child support. Generally, child support payments
made under a written agreement or court order after April 1997 are not deductible from
income by the payer and do not have to be included in income by the recipient.
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Characteristics of spousal support
To qualify as “spousal support” payments, the payer and the recipient must be living
separate and apart due to relationship breakdown at the time the payment was made.
Spousal support payments have four other characteristics:
• the terms and schedule of payments are set out in a written agreement or court
order;
• payments are made on a periodic basis (e.g. weekly, monthly, quarterly);
• payments are for the maintenance of the recipient; and
• payments are made to the recipient or an agent enforcing collection of the amount.
Even if these characteristics are not met, the following three types of payments may
(in limited circumstances) be considered support payments taxable in the hands of the
recipient and deductible in the hands of the payer:
1. Payments made before the date of the court order or written agreement;
2. “Specic purpose” or third-party payments; and
3. Lump-sum payments for retroactive support.
Payments before a court order and “specic purpose”/third party payments are considered
below. Lump sum payments are considered later in this Toolkit.
Resources
z P102, Support Payments Guide, Support Payments
Spousal support paid before there is a written agreement or
court order in place
Spousal support payments made before a written agreement or court order may be
deducted by the payer and will be taxable for the recipient when:
• The written agreement or court order states that any amount previously paid is
considered to have been paid under the written agreement or court order;
• The support payments have all the required characteristics of support payments;
and
• The support payments were made the same or prior year as the order or
agreement.
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
The payer may ask CRA to re-assess the previous year’s tax return in light of the written
agreement or court order.
“Specic Purpose” and Third-Party Payments
Payments made to a third-party for the benet of the spouse or child (children), or for
a specic purpose that benets the spouse and children, may also qualify as support
payments.
The payment may be, for example, to a landlord for rent, to a maintenance company for
property upkeep, or to cover insurance. The third-party payment must be set out in the
written agreement or court order, and must be to support the recipient’s expenses for a
specic purpose. Where the amounts are payable directly to the recipient to cover specic
expenses, they are “specic purpose” expenses. Where the amounts are payable to a third
party to cover such expenses, then they are third-party payments.
These payments are considered a support payment when the recipient has discretion
about how the payments may be spent. For instance, a reimbursement for an expense
a recipient has already paid may be used as the recipient sees t. If the recipient has
the discretion to change maintenance or insurance companies, or move to a new rental
property, these may be classied as support payments. The recipient may choose a less
expensive option and retain the rest. When the recipient does not have discretion about
how the payments may be spent, they may not be considered a support payment unless
the written agreement or court order specically states that the recipient will include the
third-party payments in income and the payer may deduct them.
How to notify CRA of spousal support payments
Taxpayers should register the amount of support payments with CRA as soon as they have
signed a written agreement or have received a court order setting out spousal support
payments. Agreements or orders setting out both child support and spousal support
payments must be registered. Agreements or orders setting out only child support but
not spousal support do not need to be registered. However, where an agreement or order
is registered, subsequent agreements or orders varying either child support or spousal
support must also be registered.
Form T1158E, Registration of Family Support Payments asks for the Social Insurance
Numbers of both the payer and the recipient and details on the starting date for support,
the amount of support for a child, the amount of support for a spouse, any adjustments to
be made to the support amount (e.g. changes to reect the cost of living), and any end date
for child and spousal support payments.
Along with Form T1158E, taxpayers must send CRA a copy of their written agreement or
court order.
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Submitting Form T1158E and a copy of the written agreement or court order should be
done as soon as possible. It is a separate process and not part of a T1Return. There is no
need to wait until CRA requests a copy. Waiting may delay the receipt of a tax refund.
CRA does not require the payer to give proof of payment when ling a T1 Return but may
ask for proof of payment at a later date.
Proof of payment of spousal support may be shown by:
• canceled cheques, or cheque images, showing both the front and back of the
cheques;
• bank statements if they show a transfer of funds from the payer’s account to the
recipient’s account or to a provincial maintenance enforcement program;
• employer statements if they show a transfer of funds from the employee’s pay
cheque to the recipient’s account or to a provincial maintenance enforcement
program;
• a statement from a provincial maintenance enforcement program showing the
amount paid to it; or
• a signed receipt from the support recipient stating the total amount of support paid
during the tax year.
The funds transferred or in a statement or receipt should match the support amounts in
the written agreement or court order.
Resources
z Form T1158, Registration of Family Support Payments
z P102, Support Payments: Registering your court order or written agreement
Spousal support payers – Deductions for spousal support
payments
On line 22000 of the T1 Return, payers may claim a deduction equal to the amount of
spousal support they paid according to a written agreement or court order. However, if the
written agreement or court order requires the payer to pay both spousal and child support,
CRA will only allow deductions for spousal support when the child support payments for
the year and any arrears from previous years have been paid in full. Overdue child support
amounts are carried forward to the next year and may not be deducted by the payer. CRA
treats child support payments as the priority. However, the priority of child support does
not apply when the child support and spousal support are
1. payable under dierent court orders or written agreements; and
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
2. the recipients are dierent individuals.
In order to claim deductible support payments, the payer enters the total amount of
support payments made under all orders and agreements, including non-deductible child
support payments at line 21999. The payer then enters the deductible part of this amount
on line 22000.
Note that the amounts to be claimed on the payer’s T1 Return cannot be greater than the
amounts set out in the written agreement or court order. The payer cannot claim other
money that might have been provided to a spouse or child in excess of support for any
reason, such as to assist with a home repair or for a gift for a child. The payer cannot claim
any amounts carried over from previous years as unpaid child support.
If the recipient has been ordered to repay support amounts, the payer must report the
reimbursed amounts on lines 12799 and 12800 in the year it was received and included as
income if
• the payer deduced the reimbursed amount on that year’s tax return; or
• the payer deducted the reimbursed amounts on previous tax years.
When a payer is a resident of Canada making payments to a non-resident of Canada, they
don’t need to withhold taxes that the recipient would need to pay if they were a Canadian
resident. However, so long as the payment meet the characteristics of spousal support, the
payer may still deduct payments.
Payments made after a recipient’s death (i.e., to their estate or to the children) do not
meet the conditions of a support payment, and are not deductible to the payer. Similarly,
payments made by an estate after the payer’s death are not deductible to the estate.
Resources
z Income Tax Folio S1-F3-C3, Support Payments
z P102, Support Payments: Tax Rules
z About Your Tax Return: Support Payments
z About Your Tax Return: Support Payments: Amount you can claim or report
z About Your Tax Return: Support Payments: Lines 21999 and 22000 – Support
Payments Made
z About Your Tax Return: Support Payments: Payments to or from a non-resident
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Spousal support recipients – Reporting spousal support
payments
Spousal support amounts received must be included in the recipient’s income. Recipients
must report taxable support income in the year it is received. A recipient cannot, for
example, delay cashing a support cheque in order to delay reporting support as income.
Support payments are taxable to the recipient if:
1. The order or agreement clearly states the amount to be paid for the current or
former spouse or common-law partner; and
2. All payments for child support are fully paid for the current and previous years.
An order or agreement must specically designate payment amounts as spousal support to
the recipient. Without this designation, support payments will be considered non-taxable
child support, and do not need to be reported in the recipient’s income.
Child support is given priority. That is, all amounts paid to a recipient in a year will be
applied rst to child support for that year, then to child support outstanding in previous
years. Only amounts paid over and above child support obligations are considered
taxable support to a recipient. Priority of child support does not apply, however, where
child support and spousal support are payable under dierent court orders or written
agreements and the recipients are dierent people.
The recipient must enter the total amount of support payments received under a court
order or written agreement at line 12799. Note that the total amount does not include
amounts in excess of support payments received, such as amounts for gifts or allowances.
The recipient then enters the taxable portion of total support at line 12800. The taxable
portion of support is calculated as total support paid, less amounts for child support paid
in that year, less amounts for child support carried forward from previous years.
The recipient must still report total and taxable support amounts even if they have
assigned or transferred support payments to a provincial government to receive social
assistance. In that case, however, support amounts are not included in the recipient’s Form
T5007 Statement of Benets.
If the recipient has been ordered to repay support amounts, he or she may claim a
deduction for previously reported support amounts if the repayment amounts were
reported as income on that year’s, or a previous year’s income tax return, and the recipient
has not already claimed a deduction for the repayment.
If the recipient’s payments are made by a payer in another country, the recipient must still
include the payments per lines 12799 and 12800 if the characteristics of spousal support
are met. However, if there is a tax agreement or treaty between Canada and the payer’s
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
resident country, the recipient may claim a foreign tax credit. A foreign tax credit may be
claimed where:
1. The payer’s country has already withheld tax from support payments; and
2. The recipient must also pay taxes on the support payments.
Payments received from the payer’s estate after death are not taxable. They do not meet
the conditions of a support payment.
Resources
z Income Tax Folio S1-F3-C3, Support Payments
z P102, Support Payments: Tax Rules
z About Your Tax Return: Support Payments
z About Your Tax Return: Support Payments: Amount you can claim or report
z About Your Tax Return: Support Payments: Line 12799 Total and 12800 Taxable
Amount
z About Your Tax Return: Support Payments: Payments to or from a non-resident
Spousal support payers – reducing taxes withheld at source
A spousal support payer with regular employment income has two options:
• Have taxes withheld at source as usual from his/her salary and enjoy an income tax
refund after ling the T1 Return, or
• Ask CRA to permit his/her employer to decrease the taxes withheld at source
to reect the deduction for spousal support payment that will be claimed when
ling the T1 Return. Before this request is considered, the payer must not have
outstanding amounts owing to CRA and must be up-to-date in ling returns.
Resources
z About Your Tax Return, Support Payments: Deductions from your pay
z T1213, Request to Reduce Tax Deductions at Source for Year(s)
Spousal support recipients – increasing taxes withheld at source
On line 12800 of their T1 Return, recipients must include the taxable amount of spousal
support they received according to a written agreement or court order.
Note that the amounts to be reported on the recipient’s T1 Return are those set out in the
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written agreement or court order. Other money that might have been provided by the
payer for any reason, such as to assist with a home repair or for a gift for a child, should
not be included.
A spousal support recipient with regular employment income has two options:
• Have taxes withheld at source as usual from his/her salary and pay an additional
amount of tax when ling the T1 Return, or
• Ask his/her employer to withhold additional taxes at source from his/her salary to
spread the tax impact of the spousal support payments throughout the year. The
spousal support recipient must submit Form TD1 to his/her employer.
Resources
z TD1, Personal Tax Credits Return
Deductions for the payer – year of relationship breakdown
In the year of relationship breakdown, a payer who is making spousal support payments
according to a written agreement or court order may have the option of choosing between
the following options, whichever is more benecial to the taxpayer.
• the payer may claim a deduction for the spousal support paid during the year at line
22000 of his/her T1 Return, or
• the payer may claim a non-refundable tax credit for the spouse or common-law
partner amount at line 30300 of his/her T1 Return. The spouse or common-law
partner amount may only be claimed when the support recipient’s net income
for the year is less than the indexed amount set for the year. Line 30300 of the
General Income Tax and Benet Guide provides the indexed amount for the tax year.
Additionally, all other requirements to claim personal tax credits for an eligible
dependent or eligible caregiver amount must also be met.
With either option, the payer should report the amount of spousal support paid at line
21999 (total support paid), and then the deductible portion of support at line 22000. If the
payer is choosing to claim personal tax credits rather than support deductions, the payer
must enter $0.00 on Line 22000. The support recipient must report the spousal support
payments received as income at line 128000 of his/her Annual Income Tax and Benet
Return.
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
Resources
z P102, Support Payments, Filling out your tax return
z Income Tax Folio S1-F3-C3, Support Payments
z Support Payments Q & A
z Line 30300, Spouse or common-law partner amount
z Line 30400, Amounts for eligible dependents
z Line 30425, Canada caregiver amount for spouse or common-law partner, or
eligible dependent age 18 or older
z Line 30450, Canada caregiver amount for other inrm dependents age 18 or older
z Line 30500, Canada caregiver amount for inrm children under 18 years of age
Spousal support payments may only be deducted from a payer’s income when they meet
all the characteristics of a support payment, including that the payments are set out in
a written agreement or court order. It is benecial when the agreement or order also
species the amount of the spousal support payment as distinct from any child support
payment, and states that the spousal support payments will be treated as deductible
for the payer and as income for the recipient. Without this distinction, spousal support
amounts may be characterized as non-taxable child support.
Filing Form T1158, Registration of Family Support Payments, is an important step which
ensures that CRA has the information it needs to process the tax returns of former spouses
or common-law partners expeditiously after a relationship breakdown.
A payer may deduct spousal support payments beginning with the year in which the
written agreement or court order was made and including the preceding year, provided
that the written agreement or court order states that any amount paid before the
agreement was signed or the court order made is considered paid under the agreement
or order. For tax purposes, it may be important for a person who began paying spousal
support at the time of relationship breakup to have a written agreement or court order in
place within two years.
Arrears and Lump-sum Payments
Basic tax rule: A qualifying retroactive lump-sum payment (QRLSP) is tax deductible for the
payer in the year it is paid. Other lump-sum payments are not tax deductible.
Tax impact of a lump-sum payment on the payer
A lump-sum payment from one former spouse/common-law partner to the other is not
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usually tax deductible for the payer.
However, a lump-sum payment made by one former spouse/common-law partner to the
other to make up for missed periodic spousal/common-law partner support payments or
taxable child support payments (arrears), is tax deductible by the payer, when the support
payments are set out in a written agreement or court order. The payer can claim the
payment on line 220 of his/her T1 Return in the year it is paid.
Qualifying Retroactive Lump-sum Payments (QRLSP)
A lump-sum payment must have these elements to be a Qualifying Retroactive Lump-sum
Payment (QRLSP):
• it is for at least $3000, not including interest
• it is paid by a former spouse/common-law partner to the other former spouse/
common-law partner
• it is a payment to cover missed periodic payments (arrears) for spousal/common-
law support or taxable child support
• the support payments are set out in a written agreement or court order which was
in place at the time the support payments were missed
• it applies to missed support payments for one or more previous years.
When a QRLSP has been made, the payer should complete Form T1198 and give the
completed and signed form to the recipient of the QRLSP.
• Form T1198, Statement of Qualifying Retroactive Lump-Sum Payment
Tax impact of a QRLSP on the recipient
When the recipient receives a QRLSP, the recipient has to report the whole payment at line
128 of his/her T1 Return in the year it is received.
At the request of the recipient, CRA will review the impact of taxing the QRLSP as if the
payments had been received in the year(s) in which they were supposed to have been paid.
When that is to the advantage of the recipient, CRA will recalculate taxes owing for those
years. The recipient must have been resident in Canada at the time.
The recipient should have received the completed and signed Form T1198 from the payer
and should include it when ling the Annual Income and Benets Tax Return. Without the
completed and signed form, CRA will ask the recipient for the breakdown of the payments
– what was owing when – and for other related information.
The tax treatment of lump sum payments will depend on the reason for the payment. It is
benecial to the payer to be able to deduct the payment from income. It is advantageous
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
to the recipient to receive a lump-sum payment without having to include it in income.
Careful attention to the tax rules and case law concerning lump sum payments is required.
Child Support
Basic tax rule: Generally, child support payments made under a written agreement or court
order made after April 1997 are neither taxable as income for the recipient nor deductible
from income for the payer.
Tax treatment: written agreements and court orders from
before May 1997
Note: Child support payments made under a written agreement or court order made
before May 1997 are usually taxable to the recipient and deductible by the payer, unless
one of the these situations applies:
• The order or agreement is modied after April 1997 to change child support
amounts, in whole or in part. In this case, the tax rules regarding child support
in place after April 1997 apply to only the revised amount. However, automatic
changes to support included stated in the order or agreement (i.e., adjustments for
cost-of-living or income changes) are exempt and remain fully taxable;
• The order or agreement made prior to May 1, 1997, species that child support will
not be taxable and deductible after a particular date; or
• The payer and recipient agree that tax rules in place after April 1997 will apply and
complete Form T1157, Election for Child Support Payments.
The recipient of child support should report the taxable amount of child support payments
received as part of total support on line 12799 of their T1 Return, and shall include the
taxable portion of child support on line 12800.
Resources
z Form T1157, Election for Child Support Payments
z P102, Support Payments: Tax Rules
z Form T1157, Election for Child Support Payments
Federal Child Support Guidelines
The Federal Child Support Guidelines provide a way to calculate the child support that a
judge would likely order should parties be unable to agree and go to court to have a judge
decide. Parents can use the Guidelines to calculate how the law expects each of them to
support their child nancially after a relationship breakdown.
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The Department of Justice Canada has extensive materials to explain the Guidelines and to
help parents to calculate child support amounts.
Resources
z Step-by-Step, Federal Child Support Guidelines,
z Child Support Table Look-Up, Department of Justice Canada
Child Benets
Basic tax rule: After the breakdown of a marriage or common-law relationship, the net
income of each former spouse/partner is used to determine each of their entitlement to
receive the Canada Child Tax Benet and the GST/HST credit.
Canada Child Tax Benet
When one parent is primarily responsible for a child (children), that parent’s net income is
used to determine entitlement to receive the Canada Child Tax Benet. When entitled, that
parent will receive 100% of the benet. A parent receiving child support remains eligible
for the benet. Child support is not part of the parent’s net income for the purposes of
calculating entitlement to for the Canada Child Tax Benet.
When both parents are primarily responsible for a child (children), each parent’s net
income will be used to determine entitlement. If entitled, each parent would receive half
(50%) of the amount they would have received if the child resided with them full time. This
is the rule even though one parent may not be entitled to the benet (net income too high)
and the other parent would be entitled to the maximum benet (because of a low net
income).
Taxpayers must notify CRA of the end of a marriage or common-law partnership 90 days
after separating without any reconciliation having occurred.
• Form RC65, Marital Status Change
• Form RC66 Canada Child Benets Application
• Canada Child Tax Benet calculator
• Information Booklet T4114
• Information on GST/HST credit
For low and middle-income parents, the Canada Child Tax Benet and the GST/HST credit
provide additional income that may be a factor to consider when deciding on support
payments and the nancial impact of separation and divorce on the parents and child
(children).
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
Child Disability Benet
The Child Disability Benet (CDB) is a tax-free benet for families who care for a child under
age 18 with a severe and prolonged impairment in physical or mental functions.
After separation or divorce, the parent with primary responsibility for the child will receive
the benet. When both parents share responsibility, the Child Disability Benet may be
split 50/50.
Resources
z Child Disability Benet
z Child Disability Benet Guideline Tables
Deductions and Credits for Children
Basic tax rule: After relationship breakdown, the parent with sole custody of a child
(children) may claim the child-related deductions from income. When parents share
custody of a child (children), i.e. a shared parenting situation, in some situations each
parent may claim related child expenses and in some cases they can select who may claim
a tax credit by consensus.
Eligible dependent credit
After a relationship breakdown, a parent may be able to claim the eligible dependent credit
for a child.
For the parent to make the claim, all these conditions must have been met at some time
during the year:
• the child is under 18 years of age, or is older and has a medical or physical disability
• the child lives with the parent for most of the year (may be away at school, camp,
etc.)
• the parent is not making support payments for the child
• no one else is claiming the credit for the child or for anyone else in the household
(there is only one eligible dependent credit allowed per household and only one
eligible dependent credit allowed for a specic child).
In shared custody situations, sometimes both parents are required to pay child support
and, therefore, following the eligible dependent credit rules set out above, neither parent
would be able to claim the credit. However, in 2007, the Income Tax Act was changed to
allow a parent in a shared custody situation to claim the eligible dependent credit, even
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though the parent was contributing to child support. For this to be allowed, the obligation
of each parent to pay support must be clearly stated in a written agreement or court
order. Wording that support was calculated using the Federal Child Support Guidelines is
not sucient. The written agreement or court order must state that the recipient has an
obligation to pay support (including how much) and that the payer has an obligation to pay
support (including how much), even if in practice the parties are choosing to have only one
person make a payment.
When the situation allows either parent to claim the eligible dependent credit, it is up to the
parents to decide which one of them will make the claim. Without a decision (for example,
if both parents claim the credit in their T1 Returns), then neither parent will receive the
credit.
When parents have shared custody of two or more children, one parent may claim
the eligible dependent credit for one child and the other parent may claim the eligible
dependent credit for another child, provided that they qualify for the credit. A taxpayer is
only allowed one eligible dependent credit per year, no matter how many children live with
the taxpayer, and can only claim a child as their eligible dependent if they do not have a
new spouse living with them.
Resources
z Section 118(5.1), Income Tax Act
z Shared custody and the amount for an eligible dependant
z Line 305
The wording of a written agreement or court order regarding spousal and child support will
have an impact on the ability to claim the eligible dependent credit for a parent with sole
custody and for parents with shared custody.
Child Care Expense Deduction
The child care expense deduction generally allows a parent to receive some tax relief
for child care expenses incurred so that the parent could work, carry on a business or
undertake certain educational activities.
During a marriage or common-law relationship, the spouse/partner with the lower
net income may, with some exceptions, be the person who claims allowable child care
expenses no matter which of the spouses/partners actually paid them.
After the breakdown of the relationship, when the spouses/partners have been living
separate and apart for the full year, both former spouses/partners may claim child care
expenses that each paid in respect of a child (children). The allowable amount of the
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
deduction will depend on the nature of the expenses, when they were incurred, and when
the child (children) was living with the parent claiming the expense.
For the year of relationship breakdown, when the former spouses/partners were living
separate and apart at year end and had either been separated for 90 days before the year
end or had a divorce order before year end, the higher income earner may claim the child
care expenses incurred in the year of the relationship breakdown.
There are limits on the total amount of child care expenses that are allowed, based on the
age of the child, any mental or physical inrmity, and eligibility for the disability tax credit.
As well, child care expenses may not be more than two-thirds of earned income for the
year.
Receipts for the expenses paid are necessary. They do not have to be submitted to CRA at
the time of ling but they must be provided when requested.
Resources
z Form T778, Child Care Expenses Deduction
z S1-F3-C1: Child Care Expense Deduction
Claiming the child care expense deduction will have some impact on taxes owing in a
taxation year. Attention to the rules that apply during the year of relationship breakdown
can maximize tax benets.
Tuition, Education, and Textbook Credit
Students at a university, college, or other eligible post-secondary institution may claim a
tax credit for tuition fees, education amount, and textbooks. When a student does not have
sucient income in the taxation year to fully use the credit, he or she can carry it forward
to another year or transfer the unused portion to a parent (among others). The student
must designate on the applicable form the parent to whom he/she wishes to transfer the
credit. The student may designate only one parent. Or the student may accumulate unused
credits for future years.
The parent claiming the credit must submit Form T2202A, Tuition, Education, and Textbook
Amounts Certicate, to CRA, when asked to do so.
Resources
z Form T2202 Tuition and Enrollment Certicate
Claiming the credit can be nancially benecial to a parent. To avoid family disagreements
and unnecessary pressures on the student, talking about who will claim the credit during
separation or divorce discussions may be worthwhile.
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Pensions
Basic tax rule: At the end of a marriage or common-law partnership a pension beneciary
may transfer (roll over) all or part of current or future pension benets to the other spouse/
partner as part of a settlement without this being taxed as a withdrawal of all the pension
benets.
Canada Pension Plan
Basic tax rule: After a relationship breakdown, a former spouse/partner has a right to split
the other former spouse/partner’s Canada Pension Plan credits provided cohabitation
requirements and application deadlines are met. The split has an impact on the Record
of Earnings for each former spouse/partner and therefore on the amount of CPP pension
benets that may be received on retirement.
CPP: credit splitting
A spouse/partner has a right to ask for a split of the other spouse/partner’s CPP credits
after a relationship breaks down. This right cannot be negotiated away except in British
Columbia, Alberta, Saskatchewan, and Québec. In those four provinces, separating or
divorcing spouses/partners can agree NOT to split CPP credits in a separation agreement
or the right to the CPP credit split can be removed by a court order.
There are minimum cohabitation requirements for CPP credit splitting to take place. There
are also time limits of one to four years for requesting a CPP credit split depending on the
start of the marriage or common-law relationship. The time limit may be waived with the
agreement of both former spouses/partners.
This web link shares information about the minimum cohabitation period and the time
limit for applying for a CPP credit split:
It is up to the spouse/partner to make the CPP credit split request and to provide all the
necessary information to Employment and Social Development Canada. This includes:
• social insurance numbers for both spouses/partners;
• proof of the date they began living together;
• proof of the date they no longer lived together;
• a written agreement or court order.
CPP credit splitting permanently changes the Record of Earnings for each spouse/partner
on which CPP pension payments will be based. It is advantageous to the lower income
spouse/partner or the spouse/partner who was out of the work force for a period of time
(for example, went back to school, lost a job and didn’t work for a while, stayed home
to be with a child) to apply for a CPP credit split. The split will balance the period of non-
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
contributions by one spouse/partner during the time the spouses/partners were living together.
After relationship breakdown, each spouse/partner will continue to gain CPP credits, which will be
reected in their individual Record of Earnings, according to their own on-going CPP contributions.
Resources
z Service Canada, information on credit splitting, 1-800-277-9914 (English) and 1-800-277-9915
(French)
A CPP credit split is advantageous to the lower income spouse/partner or the spouse/partner who
was out of the work force for a time. The credit split will not be done automatically by CPP – a timely
application with complete documentation must be submitted. Service Canada oces can be of
assistance.
In provinces where a waiver of the credit splitting is permitted (BC, AB, SK, QC) and the spouses/
partners have agreed not to split CPP credits, the waiver of the credit-splitting right must be explicitly
stated in the separation agreement or divorce decree.
CPP: end of pension sharing
Spouses/partners over 60 may be sharing a CPP pension to spread income between them and
save on taxes. CPP pension benet sharing cannot continue after a permanent breakdown of the
relationship. However, a former spouse/partner may apply for CPP credit splitting as noted above.
In situations where pension sharing is in place, a copy of the separation agreement or court order
should be provided to Employment and Social Development Canada as soon as possible to avoid
having to return payments made to the wrong person. An application for credit splitting may be
appropriate.
Payment of taxes at source when pension plan benets paid
Ideally, when payments are made from a pension plan that has been divided between former
spouses/common-law partners, the plan administrator would withhold taxes as applicable for each
beneciary before payments are made. However, this does not always happen and could result in
after-tax division amounts that do not reect the parties’ expectations.
Information from the plan administrator can identify the plan’s tax withholding approach.
Negotiations prior to signing a written agreement or making arguments in court could address
issues such as:
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• the plan beneciary makes payments to a former spouse/common-law partner from
pension income received before there is a written agreement or court order in place;
• the plan beneciary will pay all the taxes on the payments from the plan and the
income to the former spouse/common-law partner will not be taxable;
• a written agreement or court order is in place but it takes months for the pension
plan administrator to make the adjustments;
• the plan beneciary will pay all the taxes on the payments from the plan and the
income to the former spouse/common-law partner will not be taxable;
• the plan beneciary receives the full pension amount with taxes withheld and then
distributes a portion to the former spouse/common-law partner according to a
written agreement or court order;
• the plan beneciary could not reduce taxes owing by the amount paid to the former
spouse/common-law partner and the income to the former spouse/common-law
partner will not be taxable.
Resources
z Superannuation and pension benets that are included in income under
subparagraph 56(1)(a)(i)
The division of pension assets may contribute to nancial inequities for the plan holder
depending on the plan administrator’s tax withholding approach and how the division is set
out in a written agreement or court order.
Registered Retirement Savings Plans (RRSPs)
and Registered Retirement Income Funds
(RRIFs)
Basic tax rule: Provided the requirements are met, all or part of the funds in one former
spouse/partner’s RRSP or RRIF may be transferred to the other former spouse /partner’s
RRSP or RRIF without any tax consequences.
Transfer of RRSP or RRIF funds to a former spouse or common-
law partner
Generally, taxes are withheld on any amounts withdrawn from an RRSP or a RRIF as the
amount is income to the recipient. However, separating spouses may transfer holdings
in an RRSP or RRIF without having taxes withheld. Taxes will become payable when the
receiving spouse/partner withdraws funds from the RRSP or RRIF. In other words, the funds
TAX MATTERS TOOLKIT: SEPARATION AND DIVORCE (for lawyers)
can be rolled over from the transferring spouse/partner to the receiving spouse/partner
without tax consequences.
The rollover is allowed when:
• the parties are living separate and apart
• the transfer is made according to the terms of a separation agreement or court
order which species that dividing the property in this way is in settlement of rights
arising out of the breakdown of a marriage or common-law relationship
• the transfer is made directly by the trustee of one former spouse/partner’s plan to
the trustee of the other former spouse/partner’s plan
• the person receiving the transfer of funds from an RRSP is 71-years-old or less at the
end of the year in which the transfer is made
• the parties sign Form T2220 and le it with CRA along with a copy of the separation
agreement or court order, within 30 days of the transfer.
Note: The person receiving the rollover of funds from an RRSP or RRIF should not claim a
deduction for the amount transferred or report the amount as income in his/her T1 Return.
Generally, the transfer will not aect RRSP contribution limits.
Part or all of an RRSP or RRIF may be transferred by a former spouse/partner to the other
former spouse/partner as a lump sum payment to cover all future claims for spousal
support.
Resources
z T2220 Transfer from an RRSP, RRIF, PRPP or SPP to Another RRSP, RRIF, PRPP or
SPP on Breakdown of Marriage or Common-law Partnership
When a spouse/partner does not have an immediate need for income, the rollover of funds
held in a RRSP or RRIF to that spouse/partner may be a way to settle rights arising from the
breakdown of the marriage/common-law relationship.
Rollover rules also apply to other property owned by a spouse/partner including a cottage,
stock holdings, and rental properties when the property is transferred to the former
spouse/partner to settle rights arising from the breakdown of the marriage/common-law
relationship.
Resources
z Judicial and CRA interpretations of Canadian tax law and transactional implications
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APPENDIX – DRAFT TAX LETTER
Canada Revenue Agency
Winnipeg Tax Centre
Post Oce Box 14001, Station Main
Winnipeg MB R3C 3M3
Dear Sir/Madam:
Re: Legal Fees - 2021
Mr./Ms. Client has asked me to provide you with a breakdown of the legal fees that he/
she incurred in the pursuit of child/and or spousal support in 2021. This letter is not to be
construed as taxation advice, and is simply a breakdown of Mr./Ms. Client’s 2021 legal fees
for your consideration. I have also enclosed a copy of Mr./Ms. Client’s Order or agreement
along with Form T1158E, Registration of Family Support Payments, where applicable and/or
available.
The total legal fees accrued in 2021 were $Row 39, not including disbursements and
taxes. Of this amount, Mr./Ms. Client paid $Row 41 in 2021. In reference to the categories
outlined in Income Tax Folio S1-F3-C3, Support Payments, I estimate my 2021 professional
fees as follows:
• Row 43A% of the total to collect overdue support payments owing, or Row43B;
• Row 44A% of the total to establish the amount of support payments from his/her
current or former spouse or common-law partner, or $Row 44B;
• Row 45A% of the total to seek an increase in support payments, or $Row 45B;
• Row 46A% of the total to defend against a reduction in support payments, or $Row
46B;
• Row 47A% of the total to collect late support payments, or Row 47B; and/or
• % of the total to request that child support payments be non-taxable, or $ .
In total, I estimate that $Row 48 of my legal fees were incurred in pursuit of support, and
Mr./Ms. Client paid Row 50 towards this amount in 2021. Again, this is not taxation
advice, nor is it a formal accounting. It is an estimate of legal fees Mr./Ms. Client paid in
2021 related to family support, which is within my personal knowledge.
Yours truly,