Pension RRSP-divorce,taxes

[hemademesingle]

Am I correct in thinking that when a divorce is happening and the RRSP and pension money is split that there are no taxes paid upon division,by either party

The future x is trying to tell me that I have to get a court order to have the money moved into my name, if he just has a letter from his lawyer then if I withdraw any of the RRSP money then he will have to pay the tax even if it is years down the road, the only way to get around that is to have a judge order for the money to be split, this sounds totally off the wall and crazy to me, why would he pay my tax 5 years down the road,

Of course it's after hours so I won't hear back from my lawyer until morning

Opinions

[dinkyface]

I take it this is regarding a spousal plan to which he was a contributor?

The sticky side of RRSPs and divorce

He is likely referring to CRA's measures to prevent short-term income splitting (normally, if you were to withdraw $'s within 3 years of contributing, HE (the CONTRIBUTOR) would be taxed. But from the link above, it is NOT necessary to have a court order.

"The first condition is that the RRSP issuer must have proof that the annuitant and contributor spouse are living apart because their partnership has broken down. This proof may take the form of a simple written statement signed and dated by the annuitant or a copy of the separation agreement or divorce decree.

The second condition is that there must be no spousal contributions to any of the annuitant's RRSPs for the year of the request and the two previous years. This could also be evidenced by a written statement from the annuitant.

Finally, the last condition is that there can be no withdrawals from the spousal RRSP during the year of the request."

I wouldn't advise getting tax advice from your lawyer - you may be paying high rates for incorrect info.

The above info was found by googling RRSP divorce transfer.

[LotusLand47]

Talk to a bank rep. Not the teller - schedule an interview with one of the "personal financial planners" they provide for free .
They deal with this stuff all of the time

[hemademesingle]

Thank you, for the information,

The laws have been discussed with him, I have sent him links to investigate the information his self, but that would take effort on his part


This isn't a spousal RRSP that he contributed to, it is a self directed RRSP in his name only that I encouraged him to have, he never believed in spousal RRSP, the accountant was trying to rip him off,

It has been over 3 years, I believe that the money has been spent by him, not the locked in LIRA, but all the RRSP money,

What it really boils down to is financial abuse, in the 3 years that I have been trying to get my divorce, I qualify for the rule of 65,I had to apply for and qualified for CPP disability(that took 6 months), he has increased his debt by 30,000. he expects that to be included in marital debt, which it all dates from after separation, everything with him involves getting a court order, to get the table amount of child support, to get section 7 for college kids,

My lawyer filed a motion to have his statements struck because of all the false statements in his financial statement, a good example is his rent is 2800 a month, yet the reality is his rent is 900 month, his household expenses for food and utilities are 2100, yet his utility bills don't add up to that,

We threatened default after he had been served he had 60 days to get his financials in 5 months later we offered to file default, he then hired a lawyer, we then gave him more time to get his shit together,

He can't even provide his income tax for the last 3 years, because he hasn't filed income tax for many years.

My lawyer is frustrated with him as is his own lawyer, to delay things now he has requested more time to get a lawyer in Ontario, he is in Alberta, it was requested of him by lawyer to do that more than a year ago, his lawyer a year ago asked my lawyer for names of lawyers in our area for his client to contact, he didn't bother doing that, so now that we should be going in to court to finalize the divorce,he wants another delay in order to hire a lawyer in Ontario where the divorce is happening

For the last 3 years it has been stall tactic after stall tactic, the only saving grace is that my lawyer is pretty sure she will get cost from him because this should have been a straight forward simple divorce, no minor children, no super large assets

Just dealing with a control freak, and I'm getting to the point where I'm about to say it isn't worth the money, he can keep it all just give me my divorce papers, even though I am entitled to it. The thing that I won't stop fighting for is what his children are entitled to

[hemademesingle]

The RRSP hasn't been contributed to since 2008 which is a year before legal separation,

I needed confirmation that I was reading things right, by what you posted I was,

Future x is real high conflict, he ignores even the judges orders, had 65 days given to him in April to get financials corrected, he has done nothing

Refuses to pay any section 7 expenses for the oldest, owes 2 years of college expenses, yet paid for the youngest ones this year, and instead of doing the split proportionate to income, I was nice and said we would do 3rds, if we went by income he would be paying so much more,

We can't move any closer to divorce papers if he keeps coming up with excuse after excuse as to why he isn't getting things done, my lawyer says that this division of RRSP and pension needs to be done for us to keep moving forward with the divorce.

All I want is my divorce, as you can tell I am dealing with some one that was professionally diagnosed with a personality disorder, refuses meds(when police removed him from property they asked if he was off his meds), I'm just trying to get free, he just keeps blocking everything

If it wasn't me dealing with it might just be funny, I jump threw hoops like a poodle, every demand that he has made has been met, yet he won't even do what a judge orders, telephone conferences are a joke,listen to his lawyer shuffle paper my lawyer tell him Ontario law, and the crazy one spewing lies, in May in telephone conference, my lawyer quoted the law of splitting this, he and his lawyer understood that he was to get it done, it's October,

sorry this turned into a book

[LotusLand47]

yikes, no worries.
The answer to your original question is upon the breakdown of a marriage, all RRSPs are family assets and should be split equally. There si a form that if filed with CRA that allows transfers to happen tax free. I sent 50k in RRSP balances to my ex and kept a 20% interest in her DB pensino plan. All was done w/o tax implications.
Was there a house or other no sheltered assets? Do you have the house?
At 300 / hour, the legal fees to enforce your rights **may** cost more than the $ this person owes you.