Is the RRSP rollover calculated net of tax?

[NeverMind]

In division of Assets, Ex has much more in RRSPs than I do so he owes me an equalization payment which will be done in the form of an RRSP. Ex's lawyer is saying that the rollover will be in the amount net of tax which Ex will eventually pay should he cash in the RRSP. Lawyer calculated ex would pay 25% tax on the RRSP when he does cash it in years to come. For example, if Ex has $100,000 in RRSPs now, aftertax he will have $75,000.00 and therefore I will get an equalization RRSP of $37,500. I am arguing that I should get a rollover of $50,000. because I will be paying tax ( at a lower rate) on the RRSP when I cash it in so I am ultimately paying tax twice. My question is, is the equalization RRSP rollover from spouse to spose calculated as net or gross of potential income tax?
I am self represented in Alberta.

 

[dadtotheend]

I agree with your argument if it was just the RRSP money involved. But there are probably others assets to equalize and that's why a tax rate needs to be applied to the RRSP so that you are comparing apples to apples.

The tax rate should apply for the calculation of the equalization payment itself i.e. in your example he should be adding $75K to the equalization pot.

If you a choose to take the equalization payment by way of a spousal tranfer on marital breakdown rather than cash or some other tax paid asset, then it should be grossed up to a/c for the tax you will have to pay when you withdraw it down the road.