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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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  #11 (permalink)  
Old 12-12-2012, 04:40 PM
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Quote:
Originally Posted by Pursuinghappiness View Post
I had the same problem and ended up with a giant tax bill during my in-home separation.

My understanding is that you can try to fight it, however, they require you to have SEPARATE bills and SEPARATE space inside the same residence as the post above specifies. I was told when I first called that if you're paying the electric bill and stbx is paying the mortgage..those are NOT considered separate bills..even though that was our agreement per the CC. So I had to re-file married and incur the associated penalities...nightmare. I also didn't qualify for the CCTB and HST credit until after I moved out + 90 days. I had to file with our joint income.

This means that if your spouse is paying the mortgage and you're paying the electric bill...you're going to have a difficult road.

It sounds like some posters have had success but its chance rather than a clear rule because their clear rule is that in-home separations aren't valid.

I've already now established a separation date based on finally moving out of my marital residence but I have considered giving CRA a call to find out if there was anything I could do about the previous year's bill. I'm not sure if its worth trying to open a kettle of worms.
This is interesting because some people have to pay bills in houses they don't even live in because they still own them.

Sounds like I might be out of luck.

They (Our Lawyers) prorated our tax refund last year as we separated in Aug. So we shared 7/12 of each other refunds on our NFP's. There is no chance in hell I am going to get her to agree to anything. This means she gets to claim ALL of the childcare expenses even though I have paid 56.5% of it. I know that is I'm only supposed to pay the NET but we haven't even gotten into that yet. It's just one big f*in mess.

The stupid thing is the whole reason CRA has this rule is so that Married people don't claim they are separated indefinitely to get better tax results and in the end it screws the "real" separated people.
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Old 12-12-2012, 06:21 PM
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If its any consolation, my lawyer said that she's had people successfully argue for separated status during in-home separations.

She told me that I should try again but I had already submitted the marital status change form for after I moved out...so I just decided to forget about it and take the financial hit. It truly sucked, I had to make payment plan arrangements to get through it.

I think you're right though. If you have an ex that would cooperate when the forms get sent out from revenue canada...you probably have a better chance of arguing it. My ex isn't reasonable in that regard.

I really think some reform needs to happen because believe me, it wasn't my choice to have an in-home separation. My ex wanted me living there as long as possible and I wasn't able to get out until after a CC and motion. The tax laws should match the family court laws, in my opinion because so many people file incorrectly and get screwed later with interest penalities.
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Old 12-12-2012, 06:26 PM
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Same happened to me but that we had lived separate and apart,status just separated but all financials dealt with, i bought him out of MAT home and asked for nothing but CS, and I foolishly let him rent the basement for a year or so in my next home, while he had financial trouble.CRA matched the address, attached his income to mine and all of a sudden I had a huge bill to repay CRA, this help I gave him also bit me in the ass because when he finally filed for a divorce he claimed we were reconciled and came after my second home, I was victorious on that as he didn't have a leg to stand on, but that story is for another time. Because he was after the second home he did not help me at all in my appeal. I sent an appeal and provided documents that everything bills etc was in my name, I paid them solely by myself and he paid me rent in addition to CS.Bank accounts, car insurance all that too was separate. they also asked if he had his own ling quarters and washroom which he did.So maybe that is the advise separate everything form each other and one pay rent to the other for now....
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Old 12-12-2012, 11:57 PM
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Pursuing Happiness, how long did it take Revenue Canada to audit and ask you for the money? I am wondering if there is a time limit after which I am safe'safe' or if I should start saving the money.....
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Old 12-13-2012, 12:01 AM
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Separation Anxiety

Might be of interest to many on this thread
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  #16 (permalink)  
Old 12-13-2012, 10:43 AM
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ele110:

It took about a year but was spurred on by my ex calling CRA...so I'm not sure what the safe zone is.

I'd imagine if its been over a year, you might be ok.

I think there was a thread on here about it before...you might want to do a search.
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Old 12-13-2012, 11:09 AM
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I had a DRO Case Conference and nothing was decided. Her lawyer was able to package everything all together so we couldn't make any decisions.

We wanted the house sold. Her lawyer said we couldn't sell the house as she didn't know how much support she was going to get and therefore couldn't find a new place to live. Her lawyer claimed that since we disagreed on Custody/Access and therefore couldn't determine support. So as you can see you get into a chicken/egg scenario.

A long motion was scheduled for May so things are as is until then. I highly doubt anything finite will be determined then but who knows.

Based on what I have read I have no chance of proving living separate and apart (to the CRA) All bills are shared. Vehicles are still linked, Insurance still together / Joint expense account etc. So basically I will lose badly it sounds. Her lawyer has refused to deal with any one item on it's own and wants it all packaged as stated above.

So I guess I will have to keep track of everything and balance it in the end. HAHA Good luck to me.
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Old 12-13-2012, 11:18 AM
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Quote:
We wanted the house sold. Her lawyer said we couldn't sell the house as she didn't know how much support she was going to get and therefore couldn't find a new place to live.
lol..what a load of crap. Why all the way to May for a motion?

You have my sympathies...I went through something similar with CRA...only I did push for a decision on disposition of the house right after my CC. A motion got a decision made for sale of the home. A judge ordered it without a custody agreement and no corresponding support...so it is possible. You might want to ask your lawyer to push this forward for you. We got an interim custody order, pre-custody assessment during the time we were selling the house.

I can tell you that if I hadn't pushed it, I would have ended up with an even longer (and more unbearable) in-home separation. I was desperate to get into my own place so I did whatever I could to push things along. You might want to see if your lawyer can pull something ahead.

I filed my separation status paperwork with CRA for this year since I moved back in January. I can tell you, it was pretty awesome when I did it since I'm finally legally listed as separated. I can't wait to finally say I'm divorced.

Anyway, best wishes...sorry I couldn't offer you better news. Maybe other posters who've been more successful with CRA will chime in.
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Old 12-13-2012, 11:33 AM
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Default CRA Separated

Quote:
Originally Posted by Pursuinghappiness View Post
ele110:

It took about a year but was spurred on by my ex calling CRA...so I'm not sure what the safe zone is.

I'd imagine if its been over a year, you might be ok.

I think there was a thread on here about it before...you might want to do a search.
Oh, your ex called...lovely. Let's hope mine is not reading this thread!
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  #20 (permalink)  
Old 12-13-2012, 11:37 AM
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Quote:
Originally Posted by Pursuinghappiness View Post
lol..what a load of crap. Why all the way to May for a motion?

You have my sympathies...I went through something similar with CRA...only I did push for a decision on disposition of the house right after my CC. A motion got a decision made for sale of the home. A judge ordered it without a custody agreement and no corresponding support...so it is possible. You might want to ask your lawyer to push this forward for you. We got an interim custody order, pre-custody assessment during the time we were selling the house.

I can tell you that if I hadn't pushed it, I would have ended up with an even longer (and more unbearable) in-home separation. I was desperate to get into my own place so I did whatever I could to push things along. You might want to see if your lawyer can pull something ahead.

I filed my separation status paperwork with CRA for this year since I moved back in January. I can tell you, it was pretty awesome when I did it since I'm finally legally listed as separated. I can't wait to finally say I'm divorced.

Anyway, best wishes...sorry I couldn't offer you better news. Maybe other posters who've been more successful with CRA will chime in.
The lawyers determined a LONG motion (2 hours) was required to deal with all of this and the next LONG motion date was May.

It's been a great strategy for her.
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