What happens to RRSPs in a divorce?

RRSPs are considered shared marital property and must be divided during divorce proceedings During a divorce settlement in Canada, Registered Retirement Savings Plans (RRSPs) accumulated during the marriage are treated as family property and must be fairly divided between spouses. The division process can be handled in several ways: A tax-free direct transfer of RRSP funds between spouses using Form T2220 Offsetting RRSP values against other marital assets during property division Maintaining separate RRSP accounts with adjusted contribution amounts The exact division depends on provincial family law, the length of the marriage, and whether the couple reaches a mutual agreement or requires a court order. It's important to consult with a financial advisor and family lawyer to ensure the most tax-efficient transfer of retirement savings.

"Dividing RRSPs in Divorce: Rules & Tax-Free Transfers"

RRSPs are considered shared marital property and must be divided during divorce proceedings

During a divorce settlement in Canada, Registered Retirement Savings Plans (RRSPs) accumulated during the marriage are treated as family property and must be fairly divided between spouses. The division process can be handled in several ways:

A tax-free direct transfer of RRSP funds between spouses using Form T2220
Offsetting RRSP values against other marital assets during property division
Maintaining separate RRSP accounts with adjusted contribution amounts

The exact division depends on provincial family law, the length of the marriage, and whether the couple reaches a mutual agreement or requires a court order. It’s important to consult with a financial advisor and family lawyer to ensure the most tax-efficient transfer of retirement savings.