Tax Implications Of Divorce And Separation

Divorce and separation can be a very difficult time for all parties involved, especially in the beginning. However, as difficult as it can be, there are critical tax implications that individuals should be aware of.

The following information is designed to help make things easier down the road:

• Call CRA and let them know as soon as your marital status changes. It can affect the amount of child tax benefit and/or GST/HST credits to which you're entitled.

• CRA will only consider you separated once you've been living separate and apart for a period of 90 days or more due to a breakdown in a relationship. CRA generally does not consider you separated until separate residences are being maintained by both parties. Be prepared to prove to CRA that you are indeed maintaining a separate residence. Keep copies of leases signed, Hydro bills in your name, change of addresses with insurance companies, etc. If you're unable to prove that you're maintaining a separate