Ottawa Divorce .com Forums


User CP

New posts

Advertising

  Ottawa Divorce .com Forums > Main Category > Financial Issues

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

Reply
 
LinkBack Thread Tools
  #1 (permalink)  
Old 06-12-2017, 03:13 PM
Junior Member
 
Join Date: Aug 2013
Location: gta
Posts: 10
happy to be out is on a distinguished road
Default rrsp and child support

Hello I am looking for some info I couldn't find online. Last year I had to take out some RRSp to help with parenting funds. I didn't realize this ment I had to use to pay more child support which is why I took out th RRSP.

I have two thoughts, first is there any way legally not trying to lie or sneak around the money, but is there anyway to get money out without affecting support, the same applies to part time work.

the next question is If I was to withdraw 5k in RRSP, I would add that to my income and have to pay CS on it. I also have a overpayment in RRSP of 4 k. If I applied the 4k to my taxes would I then only be paying increased CS of $1000

thanks
Reply With Quote
  #2 (permalink)  
Old 06-12-2017, 03:18 PM
Senior Member
 
Join Date: Mar 2014
Posts: 2,902
rockscan will become famous soon enough
Default

Well a good financial advisor would tell you to not withdraw from your RRSP. A good lawyer will tell you this as well since it does impact your cs income.

Could you instead open a line of credit to offset your expenses or possibly look at not spending on things? You are only going to get yourself into an ongoing circle with withdrawing from RRSP to cover expenses that only go up because your income goes up.

You *may* be able to argue the withdrawal was a one time thing and shouldnt be included in your income but you have to weigh that against legal bills.
Reply With Quote
  #3 (permalink)  
Old 06-12-2017, 03:30 PM
Junior Member
 
Join Date: Aug 2013
Location: gta
Posts: 10
happy to be out is on a distinguished road
Default

I hate having to do it, its a last resort. Can find part time work as have one child every other week and can't leave alone at night and can't on that weekend. No one wants part time workers for two weekends a month. I have gone to a few interviews and they we love resume can you come 3 days a week during the week but I work during day. Its a viscious circle but no loans and line of credit available.
Reply With Quote
  #4 (permalink)  
Old 06-12-2017, 03:44 PM
Senior Member
 
Join Date: May 2011
Location: Ontario
Posts: 3,035
Berner_Faith will become famous soon enough
Default

Quote:
Originally Posted by happy to be out View Post
I hate having to do it, its a last resort. Can find part time work as have one child every other week and can't leave alone at night and can't on that weekend. No one wants part time workers for two weekends a month. I have gone to a few interviews and they we love resume can you come 3 days a week during the week but I work during day. Its a viscious circle but no loans and line of credit available.


How often do you withdrawal from your rrsp? My husband withdrew a few grand when we bought our house to pay down payment and lawyers fees. He was told a one time withdraw does not count towards CS and never had to pay on the increase due to the rrsp. His ex tries to argue this but her own lawyer told her the same thing. If you are doing this often then you would have to pay on it... what does your line 150 show?


Sent from my iPhone using Tapatalk
Reply With Quote
  #5 (permalink)  
Old 06-12-2017, 04:01 PM
Junior Member
 
Join Date: Aug 2013
Location: gta
Posts: 10
happy to be out is on a distinguished road
Default

I took
Out a couple thousand twice . So can't claim once . Iline 150 includes 150 total but lawyer told me SS doesn't count in income for support bu cra wants tax on it
Reply With Quote
  #6 (permalink)  
Old 06-12-2017, 08:22 PM
Senior Member
 
Join Date: May 2017
Posts: 110
Tandem80 is on a distinguished road
Default

A one time rrsp withdrawal according to Language selection -Department of Justice / Sélection de la langue - Ministère de la Justice doesn't count towards calculation of income used for support. My lawyer even verified that to me? However, RRSP contributions do count towards your income.

Would like to know forsure because I am heading to court as my ex is wanting retroactive support. I will be asking my one time rrsp withdrawal to not count towards my income due to being off work injured. Either way she thinks I am in arrears and thinks I owe her thousands $$$. I have added all my income from the date of divorce,calculated what support should have been (without deducting my rrsp) and what I paid, showing I have overpaid in support.
Reply With Quote
  #7 (permalink)  
Old 06-13-2017, 09:11 AM
Senior Member
 
Join Date: May 2010
Location: Hamilton
Posts: 3,718
HammerDad will become famous soon enough
Default

RRSP withdrawl should not impact your income for c/s purposes because you already paid c/s on that money. C/S is based off of gross income, which RRSP tax deductions don't factor into.

If you were able to reduce your income due to the RRSP contribution, then you would end up having to increase c/s based off of the RRSP withdrawal.

As mentioned by other members, a limited time withdrawal due to budgetary shortfalls should also be factored in as an argument.
Reply With Quote
  #8 (permalink)  
Old 06-13-2017, 10:04 AM
Junior Member
 
Join Date: Aug 2013
Location: gta
Posts: 10
happy to be out is on a distinguished road
Default

My lawyer was very specific . Rrsp withdrawal were included in income for child support . Spousal
Support is not used . She is on vacation but I know it would cost more in legal fees to fight it and she had said before most judges won't let people use the one time withdrawal .
Reply With Quote
  #9 (permalink)  
Old 06-16-2017, 02:36 PM
Member
 
Join Date: Sep 2014
Posts: 50
beentheredonethis is on a distinguished road
Default

RRSP withdrawals are used as they are included in line 150.
My husband has had my CCB income also added to his line 150 (he's the lower income earner in our house) and it is a benefit for children who he is not legally responsible for.
Anything that shows up on your line 150, your ex is entitled to. If you used that RRSP to pay your ex child support, I would attempt to argue it somehow, but as my husband was told - line 150 is line 150.
I wish you luck.
As for part time jobs - I suggest cash jobs - it's the only thing that doesn't appear on line 150.
Reply With Quote
  #10 (permalink)  
Old 06-17-2017, 12:23 PM
Junior Member
 
Join Date: Mar 2015
Posts: 22
climber9 is on a distinguished road
Default

So RRSP withdrawals are added to line 150?

But RRSP deposits are not subtracted from line 150, correct?

If that is the case, I think RRSP withdrawals should be ignored for child support purposes correct?
Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Are gains in my RRSP used in calculating child support? Netflix Financial Issues 9 02-11-2015 01:10 PM
Pension plan change affects my child support payment..how is this fair! LifeMovesOn Political Issues 3 02-28-2013 03:35 PM
Lump sum for Child Support ? shellshocked22 Financial Issues 8 02-07-2011 07:08 PM
Child support - line 150 or not? LovingMom5 Financial Issues 8 07-15-2010 11:25 PM
Child Support / Early Retirement, Lump Sum Payout mgh Financial Issues 10 04-12-2006 10:28 AM


All times are GMT -4. The time now is 04:47 PM.