Hi, I split with my wife and we had about $20,000 in a spousal RRSP. There were debts and costs that were jointly owned but I continued to pay to preserve my (our) credit rating. At the time I just thought well, since the RRSP will eventually split in an equalization of assets, I will cash it in and pay joint debt. I did do this. In no way did I use any of the funds for my pleasure.
My thinking was that, she tried to write a cheque for a large amount of a line of credit, which would have been devastating. She thought there was more room available and the cheque didn't clear. She also took a large cash advance from our Visa, which I was stuck paying. And lastly, she cashed in her TFSA for her spending. So I was trying to protect the whole financial situation by cashing in the RRSP and using it towards the joint debt before things went right out of control.
Now tax time is approaching and I'm wondering how the tax bill will play out. Also, I am wondering if, I did anything illegal or wrong by doing all of this? How will the courts look at this situation?
Any thoughts or advice?
Thanks in advance
My thinking was that, she tried to write a cheque for a large amount of a line of credit, which would have been devastating. She thought there was more room available and the cheque didn't clear. She also took a large cash advance from our Visa, which I was stuck paying. And lastly, she cashed in her TFSA for her spending. So I was trying to protect the whole financial situation by cashing in the RRSP and using it towards the joint debt before things went right out of control.
Now tax time is approaching and I'm wondering how the tax bill will play out. Also, I am wondering if, I did anything illegal or wrong by doing all of this? How will the courts look at this situation?
Any thoughts or advice?
Thanks in advance
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