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.

Legal Fees: Collecting Child Spousal Support

BUT Canada Revenue Agency (CRA) will allow you to deduct legal fees that were paid to obtain or collect child or spousal support.

This means you can deduct legal fees incurred to increase support, to defend against a claim to decrease support, or to collect unpaid support. Fees to establish child support for the first time are also deductible.

The Eligible Dependent Tax Credit

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If you have primary care for your children, you may also be able to claim them as eligible dependents for the Eligible Dependent Tax Credit.

If you share custody of your children, then you will both have to decide which parent will claim the credit.

The Eligible Dependent Tax Credit can be claimed for one qualifying child annually. If you have more than one child, you may choose which child to claim for this credit. You may also choose to claim one child one year and another in a different year.

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Laura Abrams

Certified Divorce Financial Specialist CFDS - Orno ON

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