CDFA CFDS What is the Difference?

A CFDS (Certified Financial Divorce Specialist) or a CFDA (Certified Financial Divorce Analyst) can help you navigate the financial part of your separation negotiations.

Spousal Support

Divorce or separation will sometimes mean one partner paying spousal support to the other partner. Spousal support is applicable to married partners and sometimes common-law relationships. The one receiving spousal support can be a husband or a wife (gender neutral) and applies top all relationships including same-sex relationships. Spousal Support is usually paid by the partner with higher income to the partner with the lower income. The receiving partner is “Support Recipient”. The paying partner is called “support payor”.

How Is My Income Used to Calculate Child Support?

The monthly amount of child support is based on the Provincial Child Support Guidelines and the Government of Canada’s Child Support Tables. The total amount is determined by the gross annual income of the paying parent and the number of dependent children.

Financial Mistakes To Avoid During Divorce

Divorce tends to be one of the more financially stressful times in a person’s life. No one enters the divorce process intending to spend thousands of dollars, yet many end up financially devastated because of common mistakes. Avoiding these big financial mistakes will help you hold on to hard earned money.

WHAT: Is Support Taxable Income?

Changes to your marital status can have implications on your income, taxes and financial situation. Once you have separated there are certain tax credits that you will no longer be eligible for, while others many now be available to you. Child support and spousal support are reported together on line 220 and 230 of your annual tax returns.

HOW: Are Legal Fees Tax Deductable?

Fees paid to a lawyer for preparing your Separation Agreement or negotiating the division of family assets are not tax- deductible.

WHEN: Are You Separated in the Eyes of The Canada Revenue Agency (CRA)?

For the purposes of a legal separation you do not need to live under different roofs, BUT Canada Revenue Agency (CRA) has their own set of rules with regards to being separated for tax purposes.

WHO: Letting CRA Know It’s Over

Canada Revenue Agency (CRA) expects you to notify them when your marital status changes. You can call them, do it online, or mail in a marital status change form.