Take the Right Steps to Satisfy the Tax Man

The Tax Man is neither attractive nor outgoing nor does he have a sense of humor, qualities we usually look for in a relationship mate. But, if you are looking for assertive, reliable and committed then surely the Tax Man will not disappoint.

At such an overwhelming time in our life, we could certainly use compassion and sensitivity but the Tax Man is almost always “all business”. The answers are not always straightforward if you are in the midst of settlement negotiations. The Tax Man focuses closely and diligently on the claims of separated and divorced men and women. We get many questions surrounding separation/divorce and filing your tax return:

  • Should I file as separated?
  • Do I have to pay tax on my spousal support if I don’t have an agreement?
  • Do I qualify for the Canada Child Tax Benefit?
  • Who is going to claim the children and claim those tax savings?

Spousal Support deductions and the claim for the Eligible Dependent Amount almost always trigger the receipt of an Assessment letter from Revenue Canada. This can be very upsetting. It is crucial to negotiate all of these issues during your divorce negotiations so that they are agreed to and you are prepared to respond. Unlike some ex-partners who are unfaithful, dishonest or unreliable, the Tax Man is reliable, respectful and punctual.

If you would like a copy of our ‘Tax Return checklist’ or the list of ‘Tax Items to include in your agreement’, please email Sharon@AlbertaDivorceFinances.com.

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