When you resolve a family law dispute, there will be tax considerations that come into play. At the Gene C. Colman Family Law Centre, our Toronto family law and taxes lawyers can help you with the tax implications brought on by divorce, child custody and spousal support proceedings. It is important to protect your interests and ensure that you are not caught by surprise by sudden changes to your finances.
We are available to answer your questions about how your family legal matter may impact your taxes. Contact our Ontario family law lawyers online or call 1-888-389-3099 to schedule a meeting to discuss your situation.
Shared Custody and Benefits Entitlement
Recent changes to the law have made both parents eligible to receive the Canada Child Tax Benefit and the Universal Child Care Benefit each month if you share custody. However, the receipt of this benefit is not automatic. These arrangements must be spelled out in advance in the governing document — either a separation agreement or a court order. Our Toronto divorce lawyers have extensive experience helping people reach fair resolutions that incorporate this important tax credit.
Single Parents and the Universal Child Care Benefit (UCCB)
The UCCB provides families with $100 per month for every child under six years of age. In a two-parent family, this is included in the income of the spouse who makes the least. However, in a single-parent family, this will be taxed at the parent's marginal tax rate, in effect resulting in a higher tax on single-parents than two-parent families. You do have the option of claiming this benefit on the tax return for eligible dependents. At the Gene C. Colman Family Law Centre, our lawyers will let you know which option is best for you.
Eligible Dependent or Equivalent-to-Spouse Tax Credits
The Income Tax Act grants a tax credit to individuals who support a low-income spouse. It also grants a similar credit to a divorced individual who supports a relative, including a child. However, only one spouse can claim the credit for any individual child, and if the other spouse objects, no one can claim the credit. Until the law is changed, we can work with you to ensure that the benefit of this credit is not lost.
Call for a Consultation at an Ontario Tax Credit and Separation Agreement Law Firm
The tax laws in regard to family law issues do change. We stay on top of these changes to the law and will do everything we can to ensure that you benefit from tax planning following a divorce. Contact our Toronto family law and taxes lawyers online or call 1-888-389-3099 for an initial consultation to discuss your case.
