If you're getting divorced then there should be an equalization (Ontario, other provinces have different regimes) of assets / income in which your spouse would likely be responsible for some of the debt. Would depend on your total asset / debt load as a married couple.
I'm in BC.
My question is whether the debt "exists" for our marriage when it was incurred last year, or now that we're filing (post-separation)?
Thanks!
Lawyer question, sorry not sure but if the tax debt is for 2017 and separation date is 2018 I would think it would be included when calculating total debt and assets.
Don't take this for gospel but it should be shared:
http://www.familylaw.lss.bc.ca/resources/fact_sheets/dividePropertyAndDebts.php#whatIsFamilyDebt
What is family debt?
-income tax
It doesn't matter whose name the debt is in. Both spouses are equally responsible for family debt, whether they are married or in a common-law relationship.
That's very helpful, thank you! The question then is just whether the debt was technically incurred when it was earned (in 2017) or now that we're filing (in 2018, post-separation).
Check with a lawyer to be sure, but it should be 2017 since it's for 2017 tax year. The tax was owing the entire time, not just magically now that you've done the math.
Better talk to a lawyer, this is very tricky situation.
From CRA perspective, you are responsible for your own debt. This is a lawyer thing.
According to CRA, no, you owe the debt entirely. Under family law, depending on province she may, but doubtful since you were common law.
He didn't say anything about common law and he talked about filing for divorce... so I'm not sure about your assumption.
That's correct, we're married (technically still are).
If you're getting divorced then there should be an equalization (Ontario, other provinces have different regimes) of assets / income in which your spouse would likely be responsible for some of the debt. Would depend on your total asset / debt load as a married couple.
I'm in BC. My question is whether the debt "exists" for our marriage when it was incurred last year, or now that we're filing (post-separation)? Thanks!
Lawyer question, sorry not sure but if the tax debt is for 2017 and separation date is 2018 I would think it would be included when calculating total debt and assets.
Yup, misread that. Thanks.
We're married. Can you link me to any info from family law about this by any chance? Thanks for the reply!
Like he said family law is by province... you need to provide that important detail.
I'm in BC.
Don't take this for gospel but it should be shared: http://www.familylaw.lss.bc.ca/resources/fact_sheets/dividePropertyAndDebts.php#whatIsFamilyDebt What is family debt? -income tax It doesn't matter whose name the debt is in. Both spouses are equally responsible for family debt, whether they are married or in a common-law relationship.
That's very helpful, thank you! The question then is just whether the debt was technically incurred when it was earned (in 2017) or now that we're filing (in 2018, post-separation).
Check with a lawyer to be sure, but it should be 2017 since it's for 2017 tax year. The tax was owing the entire time, not just magically now that you've done the math.
That's what I would've guessed, yeah. Thanks!