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When a dollar’s not a dollar: Contingent taxes on RRSPs in matrimonial disputes

Thursday, November 02, 2017 @ 8:40 AM | By Paul Mandel and Suzy Lendvay

Mr. and Mrs. Smith have decided to get a divorce. When couples end a marriage, an equalization payment is required that considers the value of their matrimonial assets. Mrs. Smith’s RRSP portfolio statement says her RRSP is valued at $1 million. But how much is her RRSP worth for matrimonial equalization purposes?

It is important to remember that an RRSP is a tax-deferred savings vehicle which is taxed on the withdrawal of funds, typically during retirement.

Having $1 in an RRSP is not equivalent to $1...