help with advice. I had been married for 24 years. I am now separated. My ex had 17,500 ign RRSP prior to the marriage. It was placed in an RRSp account that he continued to contribute to for teh past 25 years. He feel that the RRSp money and its interest goes to him. I thought it was the original 17,500 that belongs to him. I do understand equalization but wanted to know which would be correct for my own knowledge as we have been doing things ourselves amicably
prior to marriage RRSP
- Thread starter dnovick
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I guess we go back to my original question then... I was under the impression that the 17,500 is his... interest earned on that would be split. I know there is a correct legal answer but am uncertain what it is. If it is his how does one calulate what 17,500 earned over 25 years?
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I guess we go back to my original question then... I was under the impression that the 17,500 is his... interest earned on that would be split. I know there is a correct legal answer but am uncertain what it is. If it is his how does one calulate what 17,500 earned over 25 years?
You could spend all kinds of money on an "expert" to figure that out, or you could make a reasonable offer to your ex.
Perhaps there are other assets / debts that also need to be split that could "offset" the RESP's?
I don't know how much "real" money we are talking about on a $17,000 investment, but it could cost you a lot more than it is worth in the long run.
Perhaps there are other assets / debts that also need to be split that could "offset" the RESP's?
I don't know how much "real" money we are talking about on a $17,000 investment, but it could cost you a lot more than it is worth in the long run.
dadtotheend
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Very straight forward.
Get a statement showing value on the a/c at marriage date and another statement at separation date.
The increase in value goes into the equalization pot to be divided amongst all the other assets and debts.
He can keep the RRSP a/c but when the final equalization amount is determined a payment will have to made by one of to the other, whether it be by spousal RRSP transfer or otherwise.
Get a statement showing value on the a/c at marriage date and another statement at separation date.
The increase in value goes into the equalization pot to be divided amongst all the other assets and debts.
He can keep the RRSP a/c but when the final equalization amount is determined a payment will have to made by one of to the other, whether it be by spousal RRSP transfer or otherwise.
dadtotheend
New member
They were married. The concept is that growth in equity is split while the couple is together, regardless whose name it is in. You get to keep what you brought to the table at marriage but you split the growth, or the decline as the case may be.
Growth in his asset is split with her while they were together. If the asset went down, she shares in the decline
It all happens via equalization of family property.
Growth in his asset is split with her while they were together. If the asset went down, she shares in the decline
It all happens via equalization of family property.
1. Does prior to marriage RRSP values amount need to declare debt for contingent liability disposition cost of the standard tax rate of 18%?
ie.. if you have prior marrige RRSP of $10,000, it is not worth $10K at date of marriage but less because of you pay tax when you take it out.
$10,000 - $1,800 (18% contingent liability) = $8,200
2. What if this prior marriage RRSP of $10K is now worth $0. Can you argue that you should not need to declare this contingnet liablity?
ie.. if you have prior marrige RRSP of $10,000, it is not worth $10K at date of marriage but less because of you pay tax when you take it out.
$10,000 - $1,800 (18% contingent liability) = $8,200
2. What if this prior marriage RRSP of $10K is now worth $0. Can you argue that you should not need to declare this contingnet liablity?
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