Separation and Divorce Taxes
When you are separated for tax, how support is taxed, children and benefits, dividing property and RRSPs, and legal fees.
The short version
- For tax purposes you're separated once you've lived apart for 90 days because the relationship broke down. Your status counts from the first day you separated.
- Tell CRA after the 90 days have passed, by the end of the following month. Benefits are then based on your own income, which often raises them.
- Child support under an agreement or court order made after April 1997 is neither taxable to the recipient nor deductible to the payer. Periodic spousal support under a written agreement or court order is taxable to the recipient and deductible to the payer.
- Property moved between spouses as part of the breakdown, including RRSP money (form T2220), can generally transfer without immediate tax.
- Legal fees to get or enforce support are deductible to the recipient. The cost of the divorce itself, and the payer's legal fees, are not.
Separation and Divorce Taxes in Canada
Separation splits more than the furniture. Benefits, credits, support payments, the house and the RRSPs all have tax rules, and the order you do things in matters. The good news is that most of it is fair to both sides when the paperwork is right: support is either taxed or deductible, never both ways at once, and property can usually be divided without a tax bill landing in the middle of it. The bad news is that "the paperwork is right" carries a lot of weight in that sentence. Here's what to get right.
Separated, for Tax Purposes
| Situation | Tax status |
|---|---|
| Living apart less than 90 days | Still married or common-law |
| Living apart 90 days or more because of the breakdown | Separated, from the first day of separation |
| Reconciled | Married or common-law again |
| Divorced | Divorced, once the divorce is final |
Tell CRA in My Account or on form RC65 once you've been apart more than 90 days, by the end of the following month. If you claimed the spouse amount for the year of separation, you can claim it or the deduction for spousal support paid, not both.
Separating? See what changes in your taxes
Enter both incomes, the children's living arrangements and any support amounts. The assistant shows the effect on benefits, the support deduction, who can claim which credits, and what to tell CRA.
Support Payments
| Child support | Spousal support | |
|---|---|---|
| Recipient | Not taxable (agreements or orders after April 1997) | Taxable (line 12800) |
| Payer | Not deductible | Deductible (line 22000) |
| Conditions for spousal support | Paid under a written agreement or court order, as periodic payments, while living apart. Lump sums generally don't qualify. Payments made before the agreement can count if the agreement says so and they were made in that year or the year before | |
| Priority | All child support due must be paid before any spousal support can be deducted | |
If the agreement doesn't clearly separate child and spousal support, CRA treats it all as child support: no deduction. Get the wording right before anyone signs. A spousal support recipient who has no tax withheld may need to make instalments.
Children, Benefits and Credits
- Canada child benefit: based on your own family income after separation. With shared custody (each parent has the child at least 40% of the time), each parent gets half of what they'd receive with full custody; see shared custody and the CCB and benefits for single parents.
- Eligible dependant amount: a single parent can usually claim it for one child; you generally can't claim it for a child you pay support for, with exceptions for shared custody; see eligible dependant.
- Child care expenses: claimed by the parent who paid them, within the limits; see child care expenses.
- Canada Groceries and Essentials Benefit: recalculated on your own income; see CGEB.
Dividing Property
| Asset | Tax treatment |
|---|---|
| Home and other property transferred to a spouse in the settlement | Moves at cost, no tax now; the receiving spouse inherits the original cost. You can elect out if a gain now is better |
| RRSP or RRIF | Tax-free direct transfer to the other spouse's plan under a written agreement or court order, using form T2220 |
| Pensions | Split by the pension plan under provincial or federal pension law, usually tax-free if transferred to a locked-in plan |
| Principal residence | After separation each person can designate their own home; years before, one per family unit; see principal residence exemption |
| Rental or business property | Moves at cost, carrying its capital cost allowance history; get advice |
Selling the family home after separation is covered on selling your home.
Legal Fees
- Deductible (line 23200): fees paid to obtain spousal or child support, to enforce an existing right to support, or to increase it.
- Not deductible: fees for the divorce or separation itself, custody and access, dividing property, and the payer's fees to fight or reduce support.
Ask your lawyer to split the invoice so the deductible part is clear.
Your Separation Tax Checklist
- After 90 days apart, update your marital status with CRA.
- Make sure the agreement clearly separates child and spousal support, with amounts and dates.
- Transfer RRSP money only by direct transfer with form T2220, never by withdrawal.
- Record the value of the home and other property on the separation date.
- Decide, in writing, who claims which child for the eligible dependant amount and child care.
- Update beneficiaries on RRSPs, TFSAs, pensions and insurance, and your will.
- Keep receipts for deductible legal fees.
Other life changes are on life events and taxes.
Separation and Divorce Tax Questions
When am I considered separated for tax purposes?
When you have lived apart for at least 90 days because of a breakdown in the relationship. Your status counts from the first day of the separation.
Is child support taxable in Canada?
Not under a written agreement or court order made after April 1997. The recipient does not report it and the payer cannot deduct it.
Is spousal support tax deductible?
Yes, if it is paid periodically under a written agreement or court order while you live apart. The recipient reports it as income.
Can I transfer RRSP money to my ex-spouse without tax?
Yes, by direct transfer to their RRSP or RRIF under a written separation agreement or court order, using form T2220.
Are divorce legal fees tax deductible?
Fees to obtain or enforce support are deductible to the recipient. Fees for the divorce itself, custody, dividing property, or the payer’s fees are not.
Sources: CRA, Support payments: amount you can claim or report; Definitions for support payments; Has your marital status changed?; Folio S1-F3-C3, Support payments. Checked October 2026. Property rollover, legal fee and eligible dependant rules are summarized as we understand them; family law and pension division differ by province. Quebec is not covered.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.