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Frequently Asked Questions

Deductibility of Legal Fees Incurred to Claim or Collect Support

The Canada Revenue Agency allows you to 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. Fees for the divorce itself are not tax-deductible.

What are grounds for divorce in Quebec?

Our current Divorce Act is a federal law which has been in effect since February 1986, and is applicable throughout Canada. It is the Constitution of Canada that requires that Parliament set the conditions for marriage and divorce, to be administered equally in every province and territory of our country. In each province, there is a designated court that has the jurisdiction to deal with divorce and all its ramifications.

What is alimony (spousal support)?

During marriage, spouses owe each other respect, fidelity, succour and assistance, and they contribute to the expenses of the marriage in proportion to their respective means (articles 392 and 396 of the Civil Code of Quebec). Upon separation or divorce, spouses owe each other financial support. If one spouse is in financial need, often by reason of the role he or she assumed in the marriage, then the spouse who is better off will owe alimony (spousal support) to the spouse in need.

Is alimony (spousal support) taxable?

Alimony ("spousal support") that is payable on a regular basis is taxable for the recipient and tax deductible for the payer, as long as there is a judgment or written separation agreement that formalizes the alimony that is being paid. If alimony is paid as a “lump sum” however, it is neither taxable for one nor deductible for the other.

How should I negotiate alimony with my spouse?

Before engaging in a costly court battle over alimony, spouses who are discussing amicably how to settle their separation or divorce, or spouses who go into mediation, should concentrate on the same kinds of factors the Court will consider if they cannot solve the problem themselves.

What is child support?

When parents separate, whether or not they are married, in a civil union, or have no formal ties at all, both of them must financially support their children.

No matter whether the parents are married and so are in divorce proceedings (under our federal Divorce Act), or are merely separating (under our Civil Code of Quebec), or are dissolving their civil union (also under our Civil Code of Quebec), or finally, are not in any formal union, and so are just taking plain old custody and child support proceedings (yet again under our Civil Code of Quebec), the rules are the same!

Is Child Support Taxable?

Fortunately for some, and unfortunately for others, child support payable pursuant to a written separation agreement or judgment of the court, after May 01 1997, is no longer taxable for the recipient, nor deductible for the payer.

For child support agreements and judgments rendered prior to May 01 1997, both recipient and payer may file a declaration to make the payments tax-free for both of them.

Support Payments - When are they Taxable or Deductible?

Child Support Payments are never taxable for the recipient nor deductible for the payer, as long as the originating court order or agreement is later than May 1st 1997. Court orders or agreements prior to May 1st 1997 are subject to the old rules (taxable and deductible).

Spousal Support Payments which are payable in the "ordinary" fashion (payable weekly or monthly, by one spouse to the other spouse, without restrictions on the use of the money), are taxable for the recipient and deductible for the payer.