The Tax Implications of Separation and Divorce

Leanne Townsend is the Chair of the Family Law Group at Mills & Mills LLP, which includes associate lawyers Allie Cuperfain, Alyssa Warias, Alexandra Forsyth-Sells and Sadia Chowdhury, administrative assistant Mia Asido and law clerks Irina Kochkina and Clare Alcorn. Each month our group sends out a newsletter full of helpful tips, advice and insights to help you navigate through family/fertility legal challenges.

Leanne’s Divorcing Well podcast: Understanding the tax implications of divorce

The process of changing one’s status from married to divorced comes with a host of tax implications for both parties.

On a recent episode of Divorcing Well, I chatted with my colleague Sabina Mexis, a tax lawyer at Mills and Mills LLP, about the tax considerations that arise from the division of a couple’s assets.

She says a common mistake that people going through separation and divorce make is thinking they can avoid paying tax by transferring assets into the name of a family member or friend.

“Anyone considering dealing with their assets who think a transfer of assets for no or low consideration will avoid tax, please disabuse yourself of that notion.”

She also discusses tax implications for spousal support, child support, and answers the question about whether you can be held liable for your ex-spouse’s tax debts if you didn’t know about them. You do not want to miss this episode!

Listen on Apple or Spotify.

Having a child-centred divorce begins with intention

Parents who make a conscious choice to settle their divorce without going to court do their children a huge service.

Contentious court battles set up a win-lose framework that eats into financial resources and potentially causes long-term damage to your children, their recovery, future relationships, success in school and mental health, writes parenting expert Ann Gold Buscho in a recent column.

Staying out of court improves your ability to protect your children from conflict, and research shows that parental conflict is the most damaging aspect of divorce, she writes.

Choosing an alternative process, such as mediation, gives parents more control over decisions that will impact their family’s future.

Read more

B.C. dad ordered not to discuss COVID-19 vaccine with son

As the pandemic wears on, COVID-19 vaccinations for children continue to be a hot-button issue for separated and divorced parents.

In a recent decision out of British Columbia, a Kelowna provincial court judge sided with a mother who wanted to have her 11-year-old son vaccinated against his father’s wishes.

Judge Cathaline Heinrichs also ordered the father not to talk with his son about COVID-19 vaccination or to share any social media or other information about the vaccine and the disease with his child, reports CBC News.

You can read the judge’s decision here.

Highlights from Divorce Explained

Every week, Leanne Townsend co-hosts an Instagram Live show with family lawyer Steve Benmor, where they discuss issues on the minds of those who are divorced or divorcing. Here are the topics from a couple of recent shows. Click on the photo to check out the full episode.

Managing money matters in divorce

Sorting through the financial aspects of separation and divorce can be a monumental challenge. We take a deep dive into how assets are divided and how to manage joint accounts and credit when going through a split.

Domestic violence in family law cases

Domestic violence continues to be a serious issue in our communities, and something we see far too often in family law cases. We discuss a recent case to illustrate how the best interests of a child impact the court’s decisions in these types of cases

Serving clients during COVID-19

As we continue to navigate the new normal amid the COVID-19 pandemic,
the safety and well-being of clients is our top priority. Social distancing is vital right now to prevent the spread of the virus so I will continue to work with clients through virtual meetings. If you have any questions or concerns about your family law matter or would like to schedule a meeting, please reach out to me by email.

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Looking for more information on what to expect during a divorce, abusive relationships, love and money, life after divorce or other family law topics? 

 

Check out the In the News and Blog sections of my website where there’s a wealth of great content to get you up to speed on everything you need to know.

Leanne Townsend, Family Lawyer

Partner, Brauti Thorning LLP
Brookfield Place161 Bay Street,
Suite 2900,
Toronto, ON M5J 2S1

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Leanne Townsend is a multifaceted entrepreneur and attorney experienced in the areas of family law and domestic violence. She provides a full range of family law legal services in addition to running workshops and other programs to support people as they go through divorce.

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