Divorce and Taxes in Canada: Why Is Spousal Support Deductible but Child Support Isn’t?

Category: Divorce & Tax

Divorce and Taxes in Canada: Why Is Spousal Support Deductible but Child Support Isn't?

Last updated: October 2026

Spousal support: deductible by the payer, taxable to the recipient. Child support: neither side reports it. Register a spousal-support order or agreement with Form T1158; the Canada Child Benefit goes to the primary caregiver; RRSP divisions roll over tax-free with Form T2220 — transferred directly, never through your hands.

Here is how the tax rules treat four common items after separation: spousal support, child support, the Canada Child Benefit (CCB), and RRSP division.

Four Tax Points After Separation

Spousal Support: The Payer Deducts, the Recipient Pays Tax

Spousal support maintains a former spouse, so tax law treats it as a transfer of income: the payer deducts it (line 22000) and the recipient reports it as income (line 12800).

Four conditions must all hold: a court order or written agreement; periodic payments (monthly or quarterly — lump sums generally don't qualify); living apart because of the breakdown when paid; and the money is for the recipient's maintenance, at their discretion.

That's what Form T1158 is for: registering a court order or written agreement that includes spousal support with CRA — one form per order or agreement. Child-support-only orders don't get registered.

One trap: if the order covers both kinds of support, the spousal portion isn't deductible until all child support — current and arrears — is fully paid.

Child Support: No Deduction, No Tax

Since May 1, 1997, child support is neither deductible by the payer nor taxable to the recipient.

The logic is simple: the money is for the child, not the former spouse, so tax law doesn't treat it as a transfer of income.

Canada Child Benefit: It Follows the Child

The CCB goes to the person primarily responsible for the child's care, calculated on that person's income.

Shared custody (the child lives 40%–60% with each parent): each parent receives half, calculated on each parent's own income — both parents must apply.

After separation, notify CRA of your new marital status — but not until you've been separated for more than 90 consecutive days, and by the end of the month following the change.

Dividing an RRSP: Form T2220, Direct Transfer, Hands Off

On breakdown, an RRSP can move directly from one spouse's plan to the other's with Form T2220. It's not a withdrawal: no withholding tax, and neither party reports income.

Three conditions: living separate and apart at transfer; a court order or written separation agreement; and a direct transfer that never passes through the transferor's hands.

The completed T2220 stays with the RRSP issuer — it isn't filed with your return.

Miss the conditions and the transfer is treated as an ordinary taxable withdrawal: the full amount lands in the transferor's income for the year, with withholding tax taken at source.

What to Do: Five Steps

01Paying spousal support: keep the court order or written agreement, pay on schedule, and register with T1158.

02Receiving spousal support: report it as income.

03Child support: neither side touches the tax return.

04After 90 days of separation: update your marital status with CRA so benefits recalculate.

05Dividing an RRSP: use T2220 and keep the money out of your hands.

FAQs

1. My agreement bundles spousal and child support. How do I report it?

Split it: the spousal portion follows spousal rules (payer deducts, recipient reports); the child portion is ignored for tax. But no spousal deduction until all child support is fully paid.

2. Does a child-support-only agreement need a T1158?

No. T1158 registers only orders or agreements that include spousal support.

3. After the RRSP rolls into my ex's name, who pays tax when they withdraw?

They do. Once transferred, it's their RRSP — future withdrawals count as their income.

This article provides general legal information only and is not legal or tax advice for your specific situation. Tax rules can change, so please consult a lawyer or accountant about your case.

Miao He (何淼)

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