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Are gains in my RRSP used in calculating child support?

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  • Are gains in my RRSP used in calculating child support?

    So I know that if I put money into my RRSP that can not be used to reduce my line 150 for the purpose of child support.
    But what if the 100,000 in my RRSP goes up to 200,000 in one year? I don't withdraw anything from my RRSP so I don't think it should be used in any calculation but I'm curious for confirmation.

    Thanks

  • #2
    Originally posted by Netflix View Post
    So I know that if I put money into my RRSP that can not be used to reduce my line 150 for the purpose of child support.
    But what if the 100,000 in my RRSP goes up to 200,000 in one year? I don't withdraw anything from my RRSP so I don't think it should be used in any calculation but I'm curious for confirmation.

    Thanks
    First of all, I'd really want to know where your RRSP is invested, because I'd need to move mine!

    Your income coming in is what is used to calculate your CS. What you choose to do with the rest of it is up to you (pay bills, eat food, invest in RRSPs, give it to charity, etc).

    Increases in your RRSP are not current income. You do not have it available to spend at any point until you draw from the RRSP, at which time it shows up as income and you pay the taxes on it.

    Comment


    • #3
      *correction. The law states that withdrawals from RRSPs *MAY* be used to calculate support payments.

      ...may to the payer equates to: I hope the hell not.

      ...may to the recipient equates to: damn straight it will.

      Comment


      • #4
        Normally RRSPs withdrawals count as income for CS purposes if the purpose of the withdrawal can be reasonably inferred to be for regular income.

        One shot withdrawls (to purchase a home, for example) are not added to your income for CS in any judgment I've ever read.

        As Serene points out, it's up to the discretion of the judge.

        Comment


        • #5
          As for the original question, if RRSP gains are not included on your line 150 income (which I'm pretty sure they aren't) then they don't count for CS.

          But yes, sadly, in most cases you must pay child support on the income that is being redirected into RRSPs.

          Comment


          • #6
            Are gains in my RRSP used in calculating child support?

            My partner had this happen. When he lost his job the company matched his RRSP but that money never went on a paycheque, it went straight into his personal RRSP. It was on an investment income receipt for taxes though. The lawyer said not to include it as income for CS purposes because it wasnt accessible income and only a benefit from losing his job. But that was our case. He said that the paid out vacation and sick did have to be included though.

            I should note that he wasnt using line 150 to calculate CS. He was using actual income and that amount was to calculate arrears for the year.

            Comment


            • #7
              Originally posted by Rioe View Post
              First of all, I'd really want to know where your RRSP is invested, because I'd need to move mine!
              Check into self-directed RRSP mortgages for your primary residence, and pay yourself the interest into your RRSP as opposed to a bank.

              Alternatively, if you don't have enough to hold your own mortgage, lend your RRSP moneys out in $10, $20 or higher principal amounts as secured 2nd mortgages. I charge interest anywhere from 8-12%, with a lender bonus, on the loans I grant. Let your local mortgage broker know you have money to lend. There are only 2 or 3 trust companies which will take a self-directed, but I can send you the names if interested.
              Start a discussion, not a fire. Post with kindness.

              Comment


              • #8
                Originally posted by mcdreamy View Post
                Check into self-directed RRSP mortgages for your primary residence, and pay yourself the interest into your RRSP as opposed to a bank.

                Alternatively, if you don't have enough to hold your own mortgage, lend your RRSP moneys out in $10, $20 or higher principal amounts as secured 2nd mortgages. I charge interest anywhere from 8-12%, with a lender bonus, on the loans I grant. Let your local mortgage broker know you have money to lend. There are only 2 or 3 trust companies which will take a self-directed, but I can send you the names if interested.
                Sounds intriguing, but my RRSPs are pretty puny. I'd made spousal contributions throughout the marriage into my ex's RRSPs and he kept them all in equalization. I've only had a few years of rebuilding since. Too bad I couldn't get the contribution room back somehow!

                Comment


                • #9
                  Mcdreamy, pls send me info. Thank you

                  Comment


                  • #10
                    Originally posted by Serene View Post
                    Mcdreamy, pls send me info. Thank you
                    +1 please; thanks!

                    Comment

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