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I’m getting divorced. How does this affect my taxes?

If you and your spouse have agreed to spousal support payments or have a court order in respect to spousal support, it is important to understand a few things.

Firstly, the spouse paying support is allowed to deduct the amount they pay in spousal support from their income taxes. Secondly, the spouse receiving support is required to add this amount to their total income, as well as pay taxes on the amount received.

However, child support does not fall under these rules, and is never tax deductible.

Finally, if your divorce includes an equalization payment that incorporates a transfer of the matrimonial home or RRSP’s, these are transferred without tax consequences to the recipient spouse.