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

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  #1  
Old 02-07-2019, 08:22 PM
summersimmer summersimmer is offline
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Default what to do with large bank account

Yes I know this is a problem many wish they had.

The separation means I have 100K in the bank.
If I earn interest in it 1/2 that goes to my spouse.
If she buys a house with her 100k then i don't benefit from it.

What do i do with my money to protect it?
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  #2  
Old 02-11-2019, 01:33 PM
Asphenaz Asphenaz is offline
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Quote:
Originally Posted by summersimmer View Post
The separation means I have 100K in the bank.
If it's post separation, and this is your share of the equalization then it's yours.

Quote:
If I earn interest in it 1/2 that goes to my spouse.
If she buys a house with her 100k then i don't benefit from it.
Again post equalization, the interest is yours. If she buys a house with her money then yes, you will not benefit.

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What do i do with my money to protect it?
Protect it from what?
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  #3  
Old 02-11-2019, 01:48 PM
summersimmer summersimmer is offline
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Protect against this:


If my 100K earns $2000 in interest because I parked it in a bank account I will have to give about 1/2 of that to the ex via child and spousal support?
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Old 02-11-2019, 03:43 PM
rockscan rockscan is offline
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Default what to do with large bank account

The interest is not income. Talk to your financial advisor about how best to invest your money to avoid investment income annually.

Unless you are getting that income in your hands on an annual basis, the money is safe. If it is simply being re-invested then its not income.

Or do what your ex does and buy a house!

You could also check the child support tables, an extra $2000 a year isn’t that big of a jump in the tables.
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Old 02-11-2019, 04:23 PM
dad2bandm dad2bandm is offline
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Quote:
Originally Posted by rockscan View Post
The interest is not income. Talk to your financial advisor about how best to invest your money to avoid investment income annually...

I think it depends on what kind of investment is being talked about here, with "interest income". If it's a non-registered investment, and earning interest income, I don't see how one could not say it's income. CRA has it included in your income (unless you're hiding it from them).



Definitely, if I had $100,000 laying around in my bank account, I would look at optimizing my investment(s), to maximize my tax savings, and balance that with support obligations.
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Old 02-11-2019, 04:27 PM
rockscan rockscan is offline
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Originally Posted by dad2bandm View Post
I think it depends on what kind of investment is being talked about here, with "interest income". If it's a non-registered investment, and earning interest income, I don't see how one could not say it's income. CRA has it included in your income (unless you're hiding it from them).

My fiancé has some weird investments that he gets income statements from. The year he lost his job, his T5 came out at $1000. The rest of the time it ranges from $75-200. It has little impact on his income for cs purposes. He also took his equalization and opened a mortgage, an RESP and RRSP. If you have kids, get the RESP opened as that can be used for your contribution to their school expenses.

Like I said, if you have that kind of money, talk to an investment advisor.
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Old 02-12-2019, 02:41 PM
summersimmer summersimmer is offline
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thanks dad2bandm I think you are on the right track.
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  #8  
Old 02-13-2019, 12:31 PM
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Tayken Tayken is offline
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Fill your TFSA and then your RRSP. (If you have room.)
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