Divorce can trigger taxes on property division and affect support payments, but proper planning can minimize these effects.

Divorce can have significant tax implications, especially when it comes to dividing assets like RRSPs, pensions, and real estate. While equalization payments are not taxable, any income generated from transferred assets could be subject to taxes. Support payments also have tax consequences—spousal support is taxable for the recipient and tax-deductible for the payer, while child support has no tax implications for either party. Consulting a tax professional can help you navigate these issues effectively.