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Can you be separated & common-law? Tax issues.

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  • Can you be separated & common-law? Tax issues.

    Hi,

    Can the 12-month cohabitation period required to be common-law start while you are separated from a former spouse?

    I am helping my sister with her taxes. Her separation with her husband began November 2006. After a year (Nov 2007) she filed for a divorce based on the 1 year separation and she reported "Separated" as her marital status as of Dec. 31/07 for her 2007 taxes.

    In the meantime, she began living with her boyfriend in October 2007. Her divorce was finalized in January 2008.

    She is unsure what to say about her change in marital status for her 2008 taxes. Did the 12 months cohabitation for their commonlaw relationship begin before the divorce in October 2007 (thereby making her common-law for the end of the 2008 tax year) OR after the divorce was settled mid-January 2008 (thereby not making her common-law until after the 2008 tax year ended?)???

    Thanks in advance for any guidance.

  • #2
    For CCRA purposes, yes one can be legally married but living separate from an individual AND reside common law with another person.

    It is indeed ok to claim CL after having cohabitated 12 months with the BF even though she is not legally divorced.
    In fact I believe CCRA expects it to be claimed this way.
    However, a general inquiry at the 1-800 number for CCRA would quickly clear this up.

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