TFSA factor in divorce
  • TFSA – you don’t become the asset co-owner automatically.

  • If you had a TFSA before the marriage, your date of marriage deduction will increase, decreasing the value of your net family property.

  • No matter which partner’s name is listed as the account owner, the TFSA is a matrimonial asset that is to be equalized.

  • Be mindful that not all separations result in the equalization of TFSA assets.

What is the Ultimate Fate Of My TFSA In Separation – Divorce?

Tax-Free Savings Account in Divorce
 TFSA in Divorce what you need to know

Making a TFSA financial disclosure

 what-you-need-to-know

TFSA financial disclosure Documents Details

Where is find a Notice of Assessment
TFSA factor in divorce

The statement is typically sent to subscribers on a quarterly basis, usually in March, June, September and December. If you have not received your statement for the period, you may need to conduct inquiries.

Can I empty my TSFA account before divorce?Ken Maynard CDFA, Acc.FM2024-04-28T13:28:58-04:00

No, emptying your bank account before a divorce without mutual consent or legal advice is not advisable and can lead to legal repercussions. Such actions can be viewed as an attempt to hide assets from the division process.

How to avoid paying taxes on divorce settlementKen Maynard CDFA, Acc.FM2024-04-28T13:27:42-04:00

To avoid paying taxes on a divorce settlement involving a TFSA, ensure that transfers of TFSA funds between spouses are conducted under a properly structured separation agreement or court order, which allows for tax-free rollovers.

Can you have a joint TFSA?Ken Maynard CDFA, Acc.FM2024-04-28T13:25:51-04:00

No, you cannot have a joint TFSA. Each individual must have their own TFSA, but one spouse can contribute to the other’s TFSA within contribution limits, which then becomes subject to division upon divorce if contributed during the marriage.

What happens to TFSA marriage breakdownKen Maynard CDFA, Acc.FM2024-04-28T13:24:25-04:00

Upon a marriage breakdown, each spouse’s TFSA is assessed for contributions and growth during the marriage. This assessment helps determine how TFSAs will be divided between the parties, aiming for a fair distribution of marital assets.

Are TFSAs split in divorce?Ken Maynard CDFA, Acc.FM2024-04-28T13:22:53-04:00

Yes, TFSAs can be split in a divorce to the extent of contributions and appreciation made during the marriage. This division is part of the overall asset division process and can be arranged through mutual agreement or by court decision.

What happens to TFSA in divorce?Ken Maynard CDFA, Acc.FM2024-04-28T13:21:39-04:00

In a divorce, TFSAs are considered individual assets. However, any contributions made during the marriage and the growth of these contributions are subject to division. Parties may negotiate or require a court order to determine the division.

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Obtaining a digital copy of this document:

 what-you-need-to-know

Obtaining  a digital copy of this document

  1. Many online sources allow you to download a digital copy to the device.
  2. Most up to date Web Browsers allow you the option of “Print to PDF”
  3. Scan your hard copy to a pdf.   

Note: This can be done on a personal (home or work) scanner, or can be done at a retailer such as Staples Business Depot

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About the Author:
Ken Maynard CDFA, Acc.FM

I assist intelligent and successful couples in crafting rapid, custom separation agreements that pave the way for a smooth transition towards a secure future. This efficient process is achieved in about four meetings, effectively sidestepping the excessive conflicts, confusion, and costs commonly linked to legal proceedings. Clients have the flexibility to collaborate with me either via video conference or in-person through a DTSW associate at any of our six Greater Toronto mediation centers, located in Aurora, Barrie, North York, Vaughan, Mississauga, and Scarborough.

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Ken Maynard CDFA, Acc.FM2024-06-07T17:17:35-04:00