Income Tax and Spousal Support

Income Tax and Spousal Support

Tax and spousal support is often overlooked when couples separate. This is important, as it is one of the few areas where a family can benefit from a tax reduction. Who doesn’t want to pay fewer taxes? Generally speaking, spousal support is tax-deductible for the payor and taxable for the…

Retirement & Support Payments

Retirement & Support Payments

What To Do with Retirement and Support Payments:  Is Voluntary Retirement a Material Change? It is not so easy to just decide to retire, when you have to pay child support and/or spousal support after divorce in BC. It is unwise to unilaterally cancel or reduce support payments.  However, retirement…

Divorce Statistics In Canada: A Snapshot

Divorce statistics help us understand how marriages-and divorces- have changed over time. What exactly is the divorce rate in Canada, and what does that mean?  Here are some simple facts to understand Canadian divorce statistics: How Many Marriages End in Divorce? The answer to this question depends on the timelines…

What Qualifies as a Support Payment?

What qualifies as a support payment, and how it is taxed, are important issues.  How support payments are defined affects your income (as defined by CRA), the amount of tax deductions you are allowed, and ultimately how much income tax you pay.  Each person’s case is unique, and you should…

Legal Fees are Tax Deductible in Certain Cases

Legal fees are tax deductible in family law cases when they result in either child or periodic spousal support.  However, only the part of your case that relates to support is tax deductible. For example, if your case involves obtaining a divorce, child custody, and child support, they only cost…

Common Mistakes in Financial Statements for BC Family Court

Financial Statements can be intimidating.  For most people, this is the first time they have to swear an affidavit.  The key thing to remember is to be honest.  If you do not know the answer to a question, say so. They other thing to remember is that a Financial Statement…