With the many things couples are trying to sort out during a divorce, navigating Canada’s applicable tax rules can be overwhelming. Knowing the tax implications when children, property, and pensions are involved will help you to avoid unwelcome tax surprises later.
A helpful tax toolkit for divorcing couples
The Canadian Bar Association has put together a helpful resource called Tax Matters Toolkit: Separation and Divorce that outlines how tax rules might affect your options and future finances.
Many of the issues this publication raises do not immediately come to mind, especially during a time when you are managing the countless other matters related to your separation and divorce. Of particular benefit is how the toolkit organizes the information and links to all of the necessary Canada Revenue Agency (CRA) online forms and guidelines. Having all of this information in one place saves you hunting it down yourself and reduces the risk of completing the wrong form for your situation.
Other features of this handy guide include the following:
- CRA contact information for specific questions you may have
- Tips for retaining receipts and filing tax forms
- Definitions of terms related to separation and divorce that you will find in CRA documents
With this information in hand, you can help eliminate delays in submitting documentation to CRA and most importantly, avoid missing out on valuable tax credits and refunds at a time when you are likely moving from two incomes supporting one household to two incomes supporting two households.
When you need expert tax help
As helpful as this toolkit is, you might need expert advice and assistance. At Evans Family Law, our collaborative approach can include the involvement of a financial specialist. In more complicated situations, such as blended families or pension income from multiple sources, this expert guidance will provide you with the needed assurance and support around your specific tax concerns.
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By Richard Pollock
If you have questions about this post or collaborative law in general, contact me today at [email protected]