RRSP Entitlement????

[Anna]

I am wondering how the division of RRSP's take place. I have acquired about $30,000 in RRSP's through our 8 year marriage. He has acquired about $60,000 but has a total of about $260,000 (200,000 gained pre-marriage.)
He has taken non-registered portions out during the marriage in the amount of about $20,000.
Can anyone tell me if I am entitled to equalization?
His annual gross income is about $30,000 more than mine, and we have shared equal custody of the 2 kids.
Any direction or info appreciated.

[HammerDad]

The RRSP amounts should be split, not including what he accumulated prior to marraige.

So your $30k + his $60k = $90k / 2 = $45k each.

[dinkyface]

The problem then is how to transfer the $. If you withdraw $15k, it is taxed as income in this year (using HIS tax rates), so you'd get maybe 65-60% of that in pocket.

Another option would be to instead claim more of another asset, or to reduce your share of joint debt. But in this case the amount would be a bit higher - maybe 70-75% of the 15K (because still eventually taxes will be payable on the rrsp).

I'm just making up the %'s - it depends on his tax rate now, and later (estimated) at retirement.

This is a fairly basic equalization question - you might want to read the articles available
here http://www.ottawadivorce.com/divorce-faqs.htm

and here http://www.justice.gc.ca/eng/pi/fcy-fea/index.html

[Teenwolf]

Originally Posted by dinkyface

The problem then is how to transfer the $. If you withdraw $15k, it is taxed as income in this year (using HIS tax rates), so you'd get maybe 65-60% of that in pocket.

I would think that there's a way to transfer the RRSP amount to the ex without tax implications for him.

[dinkyface]

You're right!!! See article here
What happens to your retirement savings in a divorce? - The Globe and Mail

and here
http://www.ottawadivorce.com/income-taxes.htm