How is an RRSP transfer to a spouse handled in divorce?

RRSP transfers between divorcing spouses can be done tax-free through a direct rollover process When dividing retirement assets during a divorce, Canadian tax law allows for a tax-free transfer of RRSP funds between spouses or common-law partners. This process, known as a matrimonial property rollover , must meet specific requirements: The transfer must be pursuant to a court order or written separation agreement Funds must move directly between RRSP accounts through a financial institution Both parties must be Canadian residents at the time of transfer Form T2220 must be completed to document the transfer This tax-efficient method ensures fair division of retirement savings while protecting both parties' long-term financial interests. The receiving spouse assumes full responsibility for any future tax implications when funds are eventually withdrawn.

Tax-Free RRSP Transfers in Divorce: How to Rollover Funds

RRSP transfers between divorcing spouses can be done tax-free through a direct rollover process

When dividing retirement assets during a divorce, Canadian tax law allows for a tax-free transfer of RRSP funds between spouses or common-law partners. This process, known as a matrimonial property rollover, must meet specific requirements:

The transfer must be pursuant to a court order or written separation agreement
Funds must move directly between RRSP accounts through a financial institution
Both parties must be Canadian residents at the time of transfer
Form T2220 must be completed to document the transfer

This tax-efficient method ensures fair division of retirement savings while protecting both parties’ long-term financial interests. The receiving spouse assumes full responsibility for any future tax implications when funds are eventually withdrawn.