Ottawa Divorce .com Forums


User CP

New posts

Advertising

  Ottawa Divorce .com Forums > Main Category > Financial Issues

Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

Reply
 
Thread Tools
  #1  
Old 02-05-2015, 09:15 PM
Netflix Netflix is offline
Junior Member
 
Join Date: Feb 2015
Posts: 2
Netflix is on a distinguished road
Default 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
Reply With Quote
  #2  
Old 02-05-2015, 09:26 PM
Rioe's Avatar
Rioe Rioe is offline
Senior Member
 
Join Date: May 2010
Location: Ontario
Posts: 3,348
Rioe will become famous soon enough
Default

Quote:
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.
Reply With Quote
  #3  
Old 02-05-2015, 10:55 PM
Serene Serene is offline
Senior Member
 
Join Date: Mar 2013
Posts: 1,587
Serene is on a distinguished road
Default

*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.
Reply With Quote
  #4  
Old 02-06-2015, 08:08 AM
FightingForFamily FightingForFamily is offline
Senior Member
 
Join Date: Jan 2012
Location: Ottawa, ON
Posts: 994
FightingForFamily will become famous soon enough
Default

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.
Reply With Quote
  #5  
Old 02-06-2015, 08:10 AM
FightingForFamily FightingForFamily is offline
Senior Member
 
Join Date: Jan 2012
Location: Ottawa, ON
Posts: 994
FightingForFamily will become famous soon enough
Default

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.
Reply With Quote
  #6  
Old 02-06-2015, 08:49 AM
rockscan rockscan is offline
Senior Member
 
Join Date: Mar 2014
Posts: 5,091
rockscan will become famous soon enoughrockscan will become famous soon enough
Default 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.
Reply With Quote
  #7  
Old 02-06-2015, 08:50 AM
mcdreamy's Avatar
mcdreamy mcdreamy is offline
Moderator
 
Join Date: Jul 2011
Posts: 1,441
mcdreamy is on a distinguished road
Default

Quote:
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.
Reply With Quote
  #8  
Old 02-06-2015, 09:57 AM
Rioe's Avatar
Rioe Rioe is offline
Senior Member
 
Join Date: May 2010
Location: Ontario
Posts: 3,348
Rioe will become famous soon enough
Default

Quote:
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!
Reply With Quote
  #9  
Old 02-06-2015, 01:11 PM
Serene Serene is offline
Senior Member
 
Join Date: Mar 2013
Posts: 1,587
Serene is on a distinguished road
Default

Mcdreamy, pls send me info. Thank you
Reply With Quote
  #10  
Old 02-11-2015, 01:10 PM
sahibjee sahibjee is offline
Senior Member
 
Join Date: Oct 2011
Posts: 555
sahibjee is on a distinguished road
Default

Quote:
Originally Posted by Serene View Post
Mcdreamy, pls send me info. Thank you
+1 please; thanks!
Reply With Quote
Reply

Tags
rrsp


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Children's bennefits Wiser2008 Financial Issues 21 05-03-2019 06:21 AM
Post Secondary Education Ginger_Mallow Divorce & Family Law 39 12-11-2012 08:18 PM
Child Support Question Gwen Financial Issues 10 10-16-2008 11:54 AM
What Were They Thinking........ FL_Needs_To_Change Divorce & Family Law 6 05-25-2007 09:47 PM
Interjurisdictional Nightmare smadax Divorce & Family Law 8 01-29-2007 04:15 PM


All times are GMT -4. The time now is 07:36 AM.