April 24th 2023,<\/p>\n
We will concentrate on two issues: myths related to common law spouses and those related to taxation, given that income tax \u00a0season is near.<\/p>\n
Here is an excerpt from the article by Dany Provost published in the Journal des Affaires: \u201cWhen you die without a will, common law spouses are not recognized. When it is said that, without a will, the assets of the estate devolve 2\/3 to the children and 1\/3 to the spouse, it is for MARRIED (or civil union) spouses. For common law spouses, the estate goes 100% to the children. If you don’t have children, it goes to parents and siblings. \u00bb NOTHING to the spouse!<\/p>\n
Common-Law Spouse Myths<\/strong> After two years together, we are considered married!<\/em> Protection in the event of separation<\/em> Children from a common law union<\/em> In conclusion, the Chambre des Notaires recommends drafting a will, a notarized protection mandate and both signing the purchase contract for your residence. You can also enter into a notarized common law union agreement to establish the rights and obligations of each spouse.<\/p>\n Taxation and common law spouses.<\/strong> Revenue Canada tells us: \u201cCommon-law<\/strong>\u00a0spouse means that you live with a person\u00a0who is not<\/strong>\u00a0your spouse, but with whom you have a conjugal relationship and to whom\u00a0at least one<\/strong>\u00a0of the following situations applies:<\/p>\n \u2022 This person lives with you in a conjugal relationship for at\u00a0least 12 continuous months.<\/strong> You must<\/strong>\u00a0mutually record the relationship on page 1 of your tax return.<\/p>\n Tax impacts<\/strong> Financial benefits<\/strong> Widow’s or widower’s pension<\/em>: a widow or widower can benefit from a widow’s or widower’s pension from the R\u00e9gie des Rentes du Qu\u00e9bec if his or her spouse has contributed to the plan. There are several other positive or negative aspects to the status of common-law partner rather than being single. As tax season approaches, we wanted to remind you of the main points of this subject, which often requires tax and\/or estate planning.<\/p>\n For your information, I added the list of all deductions, credits and expenses as published by the Canada Revenue Agency.<\/p>\n To read the article,\u00a0click here<\/a><\/p>\n Mauro DiCesare, B.Comm, Pl.Fin<\/span><\/strong><\/p>\n Sources :\u00a0https:\/\/www.usherbrooke.ca\/droit\/actualites\/nouvelles\/details\/25239<\/a> April 24th 2023, Hi, If there is a subject that we regularly hear about these days, it is that of the couple and money. Addressing this subject requires a certain amount of humility to know how to limit ourselves to our skills. So, no allusion to the psychological aspects that often lead to separation and […]<\/p>\n","protected":false},"author":7,"featured_media":7754,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[68],"tags":[],"class_list":["post-7756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-non-classe-en"],"yoast_head":"\n
\nLack of knowledge about the rights of spouses is not a figment of the imagination. Karie-Ann Doyon, a law student at the University of Sherbrooke, echoed a recent study by the Chambre des Notaires which revealed, supported by a survey, that a good proportion of the population believed (falsely) being knowledgeable about the rights of common law spouses. In particular, 62% of respondents believed that the estate should be shared equally in the event of a breakup. \u00ab\u00a0It’s true for marriage, but common-law couples don’t have this protection,\u00a0\u00bb says the student.<\/p>\n
\nThis belief is false. The Chambre des Notaires reminds us: \u00ab\u00a0It is wrong to believe that after a certain number of years of living together, common law spouses obtain the legal status of married persons and the protections provided for by the Civil Code of Qu\u00e9bec, and this, even if the common law spouses have lived together all their adult lives.<\/p>\n
\n\u2022 Common law spouses are not entitled to the protection of the family residence provided for in the Civil Code of Qu\u00e9bec, which legally married couples benefit from.
\n\u2022 Common law spouses do not benefit from the protection of the family patrimony ensuring the equal sharing of certain assets in the event of divorce.
\n\u2022 Common-law spouses do not inherit from each other upon death, so this must be provided for in the will, otherwise the family of the deceased will receive their property.
\n\u2022 The common law spouse is not entitled to alimony.<\/p>\n
\n\u2022 A child born of a common law union enjoys the same rights and obligations as a child born of marriage.
\n\u2022 Child support may be sought for the needs of the children, from the common-law partner who has a higher income. Common law spouses who are parents of children are subject to the same rules as married spouses regarding their support contribution for their children.
\n\u2022 Even if the parents no longer live together, they continue to jointly exercise parental authority over their children.<\/p>\n
\nThe rules of the Canada Revenue Agency apply and, in some cases, those of Revenue Qu\u00e9bec.<\/p>\n
\n\u2022 You have a child together by birth and\/or adoption.<\/p>\n
\nContrary to popular belief, becoming common-law spouses can be negative from a taxation perspective.
\n\u2022 Where it hurts is with allowances, such as GST, Solidarity Credit and family allowances. A taxpayer earning a low income is helped from all sides by the government. But as soon as he\/she has a spouse, these benefits are cut off, because it is the household income that counts.<\/p>\n
\n\u2022\u00a0Credit transfer<\/em>: if one of the spouses has no income, the working spouse can claim their non-taxable credits. These credits can lead to a refund of up to $4,000 and gradually decrease as the spouse begins to increase their income.
\n\u2022\u00a0Spouse’s pension<\/em>: a common law spouse can benefit from the spousal pension of most defined benefit pension plans. This is the case of RREGOP, for example.<\/p>\n
\n\u2022\u00a0Spousal RRSP<\/em>: A common law spouse can contribute to their spouse’s RRSP in the same way as a married spouse.
\n\u2022\u00a0Pension income splitting:<\/em>\u00a0you can benefit from this whether you are married or in a common-law relationship.
\n\u2022\u00a0Possibility of bequeathing the TFSA or the RRSP<\/em>\u00a0to the spouse without affecting his contribution rights in the event of death
\n\u2022\u00a0Asset transfer<\/em>: Possibility of transferring assets to the spouse without immediate tax impacts.<\/p>\n
\nFinancial Security Advisor\/Conseiller en S\u00e9curit\u00e9 Financi\u00e8re avec Groupe Financier Finvest Inc.
\nMutual Fund Representative\/Repr\u00e9sentant en \u00e9pargne collective avec Investia Services Financiers\u00a0Inc.
\n514-376-7771X518<\/p>\n
\nhttps:\/\/www.lesaffaires.com\/blogues\/dany-provost\/conjoints-de-fait-attention\/613400<\/a>
\nhttps:\/\/www.justice.gouv.qc.ca\/couple-et-famille\/mariage-union-civile-ou-union-de-fait\/union-de-fait\/<\/a>
\nhttps:\/\/www.lesaffaires.com\/mes-finances\/fiscalite\/comment-gerer-vos-impots-en-couple\/631941<\/a><\/div>","protected":false},"excerpt":{"rendered":"