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Divorce & Family Law This forum is for discussing any of the legal issues involved in your divorce.

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Old 09-24-2013, 11:07 AM
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Default Independent Legal Advice waiver

I have written up a small agreement regarding giving my ex half the value of my rsp to satisfy her getting equal equity.

She will get whatever I get from the early withdrawal of half my rsp after taxes and costs.

She has had four lawyers etc, but does not want to pay her lawyer to advise her on this agreement.

The agreement is fair in my opinion and matches previously agreed to equalization - this is the last step.

I don't have a lawyer at this time either, nor do I want one.

Any advice on wording to waive the independent legal advice that I can put in the agreement?

Any other advice regarding signing agreements without legal advice?
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Old 09-24-2013, 11:18 AM
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Any other advice regarding signing agreements without legal advice?
Often a recipe for a headache down the road.

Quote:
Any advice on wording to waive the independent legal advice that I can put in the agreement?
Be comprehensive.
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Old 09-24-2013, 11:21 AM
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My only advice...don't do it.

The cost to pay a lawyer for ILA is a drop in the bucket compared to paying one to do everythung you've already done yourself, and what it will cost you if/when it comes back around and is disputed. I would even be tempted to say pay for HER to get ILA if you have to to make the agreement airtight.
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Old 09-24-2013, 01:08 PM
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My thoughts on suggested wording:

Quote:
The parties acknowledge that this division of RRSP assets is straightforward and fair, and that previous independent legal advice and self-directed research suffices to ensure they understand and accept the consequences of this division.
My other thoughts:

Divide the RRSP assets equally, after you withhold $500 off the top to cover independent legal advice for each of you.
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Old 09-24-2013, 03:14 PM
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The cost to pay a lawyer for ILA is a drop in the bucket compared to paying one to do everythung you've already done yourself, and what it will cost you if/when it comes back around and is disputed. I would even be tempted to say pay for HER to get ILA if you have to to make the agreement airtight.
Sound advice.
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Old 09-24-2013, 05:52 PM
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Don't know if you're aware of this but.....

If you collapse/withdraw funds from your RRSP there will of course be a heavy tax hit. Depending upon the amount, I believe there is a MAX of 30% withholding tax. BUT - there could be more taxes when you file your final income tax return (ie. top marginal rate I believe is around 46% right now).

So....

a) Make sure you ensure you don't get stung with unexpected taxes later when you file YOUR taxes.

b) I believe when part of a formal SA you can TRANSFER some/all of YOUR RRSP to your EX without triggering taxes. Of course, when SHE takes it out the taxes will be her problem. I would suggest you go this route - simply a special form filled out to transfer bulk amount, without tax, to HER. What she does with it after is her problem (ie. she pays applicable tax on withdraw).
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Old 09-24-2013, 10:39 PM
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Originally Posted by shellshocked22 View Post
Don't know if you're aware of this but.....

If you collapse/withdraw funds from your RRSP there will of course be a heavy tax hit. Depending upon the amount, I believe there is a MAX of 30% withholding tax. BUT - there could be more taxes when you file your final income tax return (ie. top marginal rate I believe is around 46% right now).

So....

a) Make sure you ensure you don't get stung with unexpected taxes later when you file YOUR taxes.

b) I believe when part of a formal SA you can TRANSFER some/all of YOUR RRSP to your EX without triggering taxes. Of course, when SHE takes it out the taxes will be her problem. I would suggest you go this route - simply a special form filled out to transfer bulk amount, without tax, to HER. What she does with it after is her problem (ie. she pays applicable tax on withdraw).
Our agreement covers all this. She just gets the resultant cash after taxes and costs. She gets half of her half up front, and then we settle after my 2013 NOA comes in. I will put her other half toward my taxes, and then settle the final amount.
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Old 09-24-2013, 11:41 PM
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I know this was not your question... but why wouldn't she want to avoid the heavy tax resulting from you withdrawing 50% (i.e. her half) of the RRSP all in one year? Especially *IF*your tax rate is already higher than hers.

The tax-free transfer/rollover sounds like a much better idea (i.e. less of her $ goes to the taxman) ... I think you need a signed SA for the bank to do that.

As for your question - perhaps you should add something to indicate that you both believe there has been full and truthful financial disclosure from both parties.
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Old 09-25-2013, 10:58 PM
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You could do this within the body of your Agreement:
"Ex has been told to obtain independent legal advice, has had the opportunity to obtain independent legal advice, and has declined it. EX will execute the attached Schedule, “Waiver of Independent Legal Advice”.
Each of BillM and EX:
i) understand their respective rights and obligations under this Agreement and its nature and consequences;
ii) acknowledge that this Agreement is fair and reasonable;
iii) acknowledge that they are not under any undue influence or duress; and acknowledge that both are signing this Agreement voluntarily."
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Old 09-25-2013, 11:04 PM
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and then follow it up with a Schedule, along these lines:
I, ExBillM, certify that: I have read and understand the attached Agreement dated ** and I am fully aware of each and every term therein and the consequences of my signing the Agreement. I have read and understand to my satisfaction my obligations and rights under the Agreement. I further acknowledge being advised to seek independent legal advice with respect to the terms of this Agreement prior to its execution, and that I have been given an opportunity to seek such legal advice. Notwithstanding such recommendation, and said opportunity, I acknowledge and declare that

Last edited by mcdreamy; 09-25-2013 at 11:08 PM.
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