Childrens' assets & CRA

[kevindell]

For minor children, what happens to their assets during a divorce? I am talking bank accounts and Canada Saving's Bonds.

The CRA told me it may include it in my income if it was controlled at less than arm's length as far as possible considering the children are minors. Eg. If the funds were used for an activity that benefitted them I am ok. If it was taken to pay for a new TV I would get nailed.

I asked if there was an interpretation bulletin and told no, it is under the Income Tax Act.

 

[Finally Over]

Assets are not taxed. Any interest earned would be taxable, but the income would be offset by tax credits for any amount up to about $11,000.

 

[kevindell]

Yes, but their view was that any assets the kids have must be saved for them or properly invested for them until they are 18. Otherwise it is just an account to hide money if the parents are using it. In my case it is not a lot of money but just enough to bump me up in tax brackets. I did not use any of the money myself but my STBX used it through our joint account. That is neither there or here.

A friend told me it is covered under the Children Law Reform Act. Though we did not involve any children's lawyer in our court proceedings.