When family law matters and tax collide: traps your family law professional needs to know about

In this episode, my law partner, Kim Visram, joins me for a candid conversation on key tax issues that a person needs to keep in mind when separating/divorcing - we discuss taxation of spousal and child support, the child tax credit, the importance of interspousal agreements (i.e., the "pre-nup"), and alternative dispute resolution as a means of resolving family law issues.

Show Notes

As if going through a separation or divorce wasn’t stressful enough, there are several income tax traps that can arise when dealing with issues arising from a separation. Not only does your family law advisor need to know about family law, but it’s important that they understand the fundamental tax issues that may also arise. A family law advisor can also help you avoid dealing with tax traps by effective planning through a prenuptial or cohabitation agreement. Agreements of this nature, and alternative methods of dispute resolution, are becoming a lot more popular as more spouses are prioritizing having those big discussions upfront regarding expectations pertaining to financial and property matters should a separation arise. Join me and my law partner, Kim Visram of SHTB LLP for a discussion regarding tax traps, interspousal agreements and what other options exist if you do not want to set foot in Court. 

In this episode, we discuss the following issues: (1) Key tax issues that arise in most separations/divorces (8:38); (2) How to minimize financial implications upon separation/divorce with effective planning in an interspousal agreement (45:20); (3) How to utilize alternative dispute resolution measures to find creative solutions and minimize tax implications arising from separation/divorce (56:00). 

RESOURCES DISCUSSED ON THE EPISODE

• “Negotiate your best life” (A podcast) - https://negotiateyourbestlifepodcast.com 
• Conflict Resolution Saskatchewan: https://conflictresolutionsk.ca/member-profile/?uid=162
• Government of Saskatchewan,  “Family Mediators who have been recognized under Section 44.01 of The Queen’s Bench Act, 1998” - https://pubsaskdev.blob.core.windows.net/pubsask-prod/115118/Recognized%252BFamily%252BMediators%252BList_July%252B16%252B2020.pdf

MORE FROM KIM

• Website:  https://www.shtb-law.com/lawyers/kimberly-d-visram/
• Facebook: https://www.facebook.com/KimberlyVisramLegal

MORE FROM AMANDA

• The Tax Chick Blog - https://taxchickca.wordpress.com;
• Connect with me by email: [e-mail]
• Instagram: @tax.chick

What is The Tax Chick Podcast?

Tax is complex, but it does not always have to be so complicated and shrouded in mystery. Host Amanda Doucette is a self-proclaimed foodie, spin class and Pilates enthusiast, and a tax lawyer. She fell into the practice of tax law despite having a life-long hatred of spreadsheets, math and numbers in general. Join Amanda and her guests as they unpack some serious Canadian tax topics and attempt to demystify the world of tax.