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  • Top-up support payments

    We're trying to reach a separation agreement in a common-law separation. I have to pay spousal support and my ex has little to no start-up cash to get resettled. I can ill afford to give them a lump sum amount to get started. Their lawyer claims I can make a number of smaller "top-up" payments that I will still be able to claim on my taxes. Does anyone know if this is really the case? My lawyer claims that support payments must be "periodic". If these "top-up" payments are scheduled in the separation agreement, does that mean that I can claim them?

    On another note, do I need to get receipts for payments or do we need to register the agreement with CRA?

    Thanks in advance...

    Soup.

  • #2
    You will very likely have to prove your (preusmably spousal) support payments at some point sooner than later, so keep the receipts, and the court order.

    The question you raise re lump sum vs. periodic payments is important because, as you say, SS is only deductible when they are periodic, which is mostly monthly.

    A few "top up" payments might easily be construed as a lump-sum being paid in a few instalments. Be careful.

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    • #3
      Update for those who've been browsing. I called CRA yesterday and as long as the payments are worded properly in the separation agreement as periodic and to be paid on a specific date, then I should be OK.

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