Emptying a TFSA before divorce is not recommended and may have serious legal consequences
Withdrawing funds from your Tax-Free Savings Account (TFSA) before divorce proceedings without proper consent or legal guidance is considered a serious matter in Canadian family law. Such actions can be interpreted as attempting to hide marital assets, which may result in:
- Court-ordered penalties and sanctions
- Negative impact on your divorce settlement
- Requirement to repay withdrawn funds
- Damage to your credibility during proceedings
Instead, consult with a qualified family law professional to understand your rights and obligations regarding TFSA assets during divorce. All financial accounts should be properly disclosed and divided according to provincial family law requirements.