Division of RRSP's on divorce or separation - Canadian-USA-Global tax help - david ingram expert US CANADA cross border


My_question_is: Canadian-specific

question: As part of the settlement of the division of property,
can RRSP's be rolled over tax free into your spouses name.

If it is allowable, does it need to occur prior to a divorce being granted or after.


david ingram replies:

The Income Tax Act provides for a "rollover" which allows RRSPs to be transferred from one spouse to the other without any income tax consequences.  Either a court order or written separation agreement is required by Revenue Canada.

Therefore, the transfer can be done upon separation alone and is quite common where the couple lives apart but does not divorce because of religious or other reasons.

This is also true for IRA's and other pension plans in both the US and Canada..

standard disclaimers, etc.


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