Why You Need to Let CRA Know You’re Getting Divorced
Divorce is stressful regardless of your particular situation, and the legal requirements of divorce can be confusing. However, keeping up with the paperwork can save you a lot of headaches and heartache.
Here are the top three reasons you need to let CRA know that you’re getting divorced:
1. You’re required to
Divorce is difficult enough to deal with even if you aren’t in trouble with CRA. You should be letting CRA know by the end of the month following your divorce. If you have been separated for more than 90 days, CRA also needs to know about it. You can let CRA know about your change of status with the RC65 Marital Status Change form.
2.Canada child tax benefit (CCTB)
According to the Canadian Bar Association, if you have a child/children, your Canada Child Tax Benefit (CCTB) will change depending on “who resides with the child and who primarily fulfils the responsibility for the care and upbringing of the child”.
The CCTB cannot be split between you by CRA. If you will be taking on the majority of the responsibility for your child, you will want to start receiving all possible assistance as soon as you can.
3. Other tax benefits
Your other tax benefits could also change, such as your GST/HST credit or, if you are applicable, your Working Income Tax Benefit (WITB). CRA states that, in regards to GST/HST, “you can apply now by writing a letter to your tax centre or by calling the CRA at 1-800-959-1953.”
According to CRA, “you will need to file a new WITB Advance Payment application. If you do not file a new WITB Advance Payment application, your WITB advance payments will be stopped until a new application is received.” You need to apply by August 31.
Regardless of how your taxes will change, notifying CRA promptly following a change in marital status can save you money and trouble at a time when you already have enough to handle.
Why you should hire a divorce lawyer
Clearly, divorce without a lawyer can become very complicated. Since you’re already in a tough spot, ensure that divorce court isn’t more stressful or harmful than it needs to be. Professional legal help can make all the difference.
With decades of collective family law experience, Fine and Associates Professional Corporation can help you navigate your divorce with confidence. Learn more about how we can help, and fill out the form to request a free consultation.