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Family Tax Cut and "Separation"

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  • Family Tax Cut and "Separation"

    I'm wondering if anybody else has this situation. An accountants view would be good

    I understand it is very difficult (if not impossible) to prove "living separate and apart" to the CRA, if you don't have lots of documentation that proves otherwise.

    We agree that we were "separated" in August 2014 (marriage is done), but continued to live together in the same house, sharing joint accounts/credit cards, all expenses until beginning of March 2015 when she moved into her new house.

    So I will claim the Family Tax Cut, and file as married since we were not "living separate and apart" until March 15 Will notify the CRA of this as required in 90 days hence.

    Would it be fair to say that CRA and The Law will hold two different dates regarding our separation?

  • #2
    If you lived in the same house and continued to have shared finances etc, I don't believe either CRA or FLA would consider you separated From August on.

    ETA: although if you both agree on your court papers for seperation date I don't believe anyone would be cross referencing it with CRA. It's really only an issue if one of the parties makes it an issue.
    Last edited by blinkandimgone; 03-29-2015, 02:28 PM.

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    • #3
      Living in the same house is one thing. Lots of people do that - roommates, boarders, etc. Continuing to share your finances is completely another thing. If you still maintain joint accounts and credit cards, you're not very separated. Closing those should be one of your first priorities, not just as one more way to demonstrate that you are separated, but to protect yourself financially.

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      • #4
        Oh its a done deal. We signed off the separation agreement earlier using the August date (which is when we threw in the towel in a real way). But we decided it made more financial sense to live together until we negotiated the details and the kids would find it less disruptive (which they did). In many ways its been the "perfect divorce". We've trusted each other thoroughly thru the process. She bought her house without a signed separation agreement (opening herself to litigation if I didn't advance her the funds). And I advanced her the funds, trusting that she would sign off the sep agreement. (We are talking my life saving here). She signed, moved out and we have closed all the joint accounts (I let a few $$ slide to her to smooth tensions). She has been forthcoming with sharing divorce costs, I helped her move, setting her up in her new house, the kids are happy.... its not perfect... but its worked very, very well. NOW we are separated in the eyes of CRA.

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        • #5
          Then why not use the date you've signed to in the seperation agreement? That's the documented and agreed on date. You should be save there I would think.

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          • #6
            Joehobo: Congratulations to you and your ex for the smooth and friendly process of separation.

            Mike62

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