Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Can a tax-deferred transfer be made between the RRSPs of a divorced couple pursuant to paragraph 146(16)(b) where the old court order in respect of the divorce is varied or the separation agreement is amended in writing years after the divorce became final?
Position: Yes.
Reasons: The settlement of a couple's rights need not be limited to a single occurrence before or at the time of divorce. The amended agreement or varied court order is still in settlement of rights arising out of the couple's marriage.
XXXXXXXXXX 2000-005220
G. Kauppinen
Attention: XXXXXXXXXX
November 9, 2000
Dear Sirs:
Re: Transfer to Registered Retirement Savings Plan ("RRSP") of Former Spouse
This is in reply to your facsimile transmission dated October 20, 2000 regarding the above-noted subject.
You have asked for our opinion as to the availability of the tax-deferred transfer under paragraph 146(16)(b) of the Income Tax Act (the "Act") where a divorced couple has the court order in respect of their divorce varied or they amend their written separation agreement so that the rights of the former wife to all future support payments from the former husband will be satisfied by a lump sum payment from the RRSP of the former husband to the RRSP of the former wife.
As long as the transfer is made pursuant to a varied court order or a written amendment to a written separation agreement, the provisions of paragraph 146(16)(b) of the Act will be satisfied. The new (varied) court order or new (amended) separation agreement will still relate to a division of property in settlement of rights arising out of the divorced couple's marriage.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings Directorate
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