J.B. – Court of Quebec finds that an unsigned layperson’s agreement qualified as a written separation agreement

Dortélus J found that a separation agreement drafted by the taxpayer’s husband in mangled English and which she did not sign nonetheless qualified as a “written separation agreement” for purposes of the Quebec equivalent of s. 160(4) given that she agreed with its basic terms and he thereafter complied with their agreement that he would transfer a ½ interest in some real estate to her in satisfaction of her claims for support. The husband also was found to be living “separate and apart” from her at the time, as also required by s. 160(4), even though he was spending some time in her basement to help ease the shock of the transition with their children.

Consequently, his tax debt did not flow through to her as the transferred property was deemed to have a nil value.

Neal Armstrong. Summary of J.B. v. Agence du revenu du Québec, 2018 QCCQ 4200 under s. 160(4).