CRA indicates that the marriage-breakdown FHSA transfer provision (s. 146.6(7)) does not override the requirement for the transferee (ex-)spouse to be a “qualifying individual”

In very general terms, ss. 146.6(7)(a)(ii) and (8) contemplate that a tax-free transfer of an individual's FHSA may be made to the FHSA, RRSP or RRIF of the “ex” in a settlement by judicial order or written agreement in relation to their relationship breakdown. CRA indicated that if, at the time the transfer is to be made, the transferee individual does not already hold a FHSA and is not a “qualifying individual” (e.g., was a recent home owner) so that such individual is not eligible to open up a FHSA, then the transfer cannot be made to a FHSA, and can only be transferred directly, within the specified limits, tax-free to that individual's RRSP or RRIF.

Neal Armstrong. Summary of 10 October 2024 APFF Financial Strategies & Instruments Roundtable, Q.6 under s. 146.6(7).