How does an RRSP rollover to a spouse work in divorce?

RRSP spousal rollovers during divorce allow tax-free transfers as part of property division settlements A tax-free RRSP transfer between divorcing spouses is permitted under Canadian tax law when it's part of a formal property division agreement or court order. This process, known as a spousal RRSP rollover , helps couples equalize their assets during separation without triggering immediate tax consequences. Transfer must be made directly between RRSP accounts A written separation agreement or court order is required The transfer maintains tax-deferred status Both spouses must be Canadian residents Form T2220 must be completed for the transfer The receiving spouse assumes full control and responsibility for the transferred RRSP funds, including future tax obligations when withdrawals are made. This arrangement provides a clean break while preserving the tax-sheltered status of retirement savings.

"Tax-Free RRSP Spousal Rollovers in Divorce: Key Rules"

RRSP spousal rollovers during divorce allow tax-free transfers as part of property division settlements

A tax-free RRSP transfer between divorcing spouses is permitted under Canadian tax law when it’s part of a formal property division agreement or court order. This process, known as a spousal RRSP rollover, helps couples equalize their assets during separation without triggering immediate tax consequences.

Transfer must be made directly between RRSP accounts
A written separation agreement or court order is required
The transfer maintains tax-deferred status
Both spouses must be Canadian residents
Form T2220 must be completed for the transfer

The receiving spouse assumes full control and responsibility for the transferred RRSP funds, including future tax obligations when withdrawals are made. This arrangement provides a clean break while preserving the tax-sheltered status of retirement savings.