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  • 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

  • #2
    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.

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    • #3
      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.

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      • #4
        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

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        • #5
          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

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          • #6
            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.

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            • #7
              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.

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              • #8
                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 .

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                • #9
                  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.

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                  • #10
                    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?

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                    • #11
                      Withdrawing from your rrsp is considered income which is added to your line 150.

                      Contributions mean nothing. There may be an argument that a company supplied rrsp contribution should be considered income as its a benefit. Not sure if its been argued though.

                      Bottom line, your rrsp is considered income if you take anything out.

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                      • #12
                        What you have to understand here is that you are dealing with brain dead people (lawyers and judges) who know nothing about financial information.

                        This was an issue in my case that actually went to trial. I didn't want to take out RRSP's but as many people know, sometimes you have to do it because finances are tight. There are precedents for it being included and excluded. But all that means is that the lawyers and judges who want it included are wrong.

                        Essentially including RRSP's as income is a form of double dipping. It has already been split at separation.

                        I had to go to trial as a self represented litigant on this issue. I articulated everything clearly and the Judge ruled in my favour. She was represented I was not. It doesn't matter how many times you withdraw RRSP's, it is always not included in child/spousal support calculations.

                        I mean its logical it isn't included but lawyers are immensely stupid and love stirring up trouble to soak the public of more fees.

                        AND - Always remember LINE 150 is not income. It is a starting point before proper adjustments are made.

                        Regards.

                        Comment


                        • #13
                          good post DD. "line 150" is often misunderstood with regards to determining income for support.

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                          • #14
                            Originally posted by arabian View Post
                            good post DD. "line 150" is often misunderstood with regards to determining income for support.
                            Here here! All it took was to read the Federal Guidelines a million times

                            Comment

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