A tax-free transfer of RRSP funds between spouses during marriage breakdown or divorce

A Spousal RRSP rollover allows for the transfer of Registered Retirement Savings Plan (RRSP) assets between separating spouses or common-law partners as part of a divorce settlement. This process helps equalize retirement savings while maintaining the tax-deferred status of the funds.

• Transfer must be done according to a written separation agreement or court order
• No immediate tax implications when done properly
• Funds move directly between RRSP accounts
• Both parties must be Canadian residents at the time of transfer
• The receiving spouse becomes responsible for future taxes on withdrawals