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  1. #1
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    Default Withdawal of RRSP and Child support calculation

    I've been doing some reading and searching about this...is there any of you who would have an answer (based on facts) about this subject. For an example...if my ex makes x amount of annual income, and pays and x amount of child support....if he withdraw lets say 25K and cashes in the amount...I know he has to add to his yearly income....would that mean that the calculation for next year Child support would be base on the total amount??? (his annual income + the withdrawl)....?? anyone who dealt with that before??

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    Hi there,

    This seems to be more of a legal question but from what I've seen one time redemptions wouldn't necessarily be considered “income“ for child support purposes. Additionally, RRSP account withdrawals are really money that you've already included in your gross income in prior years so depending on when the contributions were made counting them in the year you take them out might double count them.

    Having said all that, it seems to be a question of fact. I can't see anything in a quick search that gives a definitive answer so like in all things in my line of work .... the answer is “it depends“

    I did find this which may point you in the direction that gets you a firm answer:

    RRSP Redemption. Even though RRSP redemptions are included in your income for tax purposes, a one-off RRSP redemption normally would not be considered part of your income for child support or spousal support purposes. However, if you had a pattern of cashing in a certain amount of RRSPs each year, the results might be different

    Hope you can find a resolution you both agree to without a big fight.

  3. #3
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    Thank you sooooo very much!!! This is what I thought too but wanted to make sure.....you are great! thx!

  4. #4
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    Glad you're happy

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