Offices in Ottawa and Perth
(613) 722-1500

CONTACT US (613) 722-1500

The Canada Child Benefit and Separated Parents

The Canada Child Benefit and Separated Parents

By:

Mann Lawyers

Posted April 19, 2018

Since July, 2016, families with children have been eligible to receive a tax-free benefit from the Federal government called the Canada Child Benefit. This replaced the previous Canada Child Tax Benefit and Universal Child Care Benefit with a single, non-taxable benefit for all families with children, geared to the income of the parents.

The Canada Child Benefit may include a child disability benefit to parents of children eligible for that benefit. General information is available on CRA’s web page.

While a couple is together, the Canada Revenue Agency will look at the whole family’s income to determine the appropriate benefit amount payable. The benefit amount must be paid to only one parent (CRA’s policy is that it be paid to the female parent unless the male parent provides specific information confirming he is the primary parent), although it can be paid via direct deposit into a joint bank account.

When parties separate they have an obligation to inform CRA, which can be done online, by phone or by filling out the required forms. This should be done before the parties simply file their taxes and check off a different marital status on their respective returns.

If one of the parents has primary care and control of the children that parent will be entitled to the full Canada Child Benefit that he or she would otherwise be entitled to as the only caregiver – the other parent’s income is not considered. If the parties share care and control of the children each parent will be eligible to receive half of the amount to which he or she would be entitled as the only caregiver.

Because the Canada Child Benefit is geared to income, this means that a lower-earning spouse will be entitled to a greater benefit each month than the higher-earning spouse, but in any case only 50% of the benefit to which that spouse would be entitled.

Where a separated parent re-partners with someone new, there is an obligation to inform the CRA so that they can determine if your benefit amount is still appropriate. If the new partner works, the benefit amount will be reduced.

Your Separation Agreement should specify which party will be claiming the Canada Child Benefit, as well as the other credits or benefits to which either or both party may be entitled. If there is no agreement in place CRA will send you a questionnaire to which you are required to reply with any supporting documents requested.

If you would like further information about your entitlement, tax benefits and credits generally, or how to ensure your Agreement properly addresses these issues, please contact Mann Lawyers.

This blog post was written by Jenny Johnston, a member of our Family Law team.  She can be reached at 613-566-2081 or at jenny.johnston@mannlawyers.com.

More Resources

Blog |
Wills, Trusts and Estates
By: 

Posted November 28, 2023

As a lawyer who has worked in the field of Wills and Estates for the last three years, I get the following question quite a[...]
Blog |
Family Law
By: 
Amongst the profession, we often refer to domestic contracts prepared by the parties themselves without legal advice as “kitchen table agreements”. In May 2023, the[...]
Blog |
Wills, Trusts and Estates
By: 

Posted November 7, 2023

What is a Power of Attorney document? A Power of Attorney is a legal document that authorizes someone else, known as your “attorney” to act[...]
Blog |
Real Estate
By: 

Posted November 6, 2023

If you enter into an Agreement of Purchase and Sale to buy a new build home, your offer could be conditional on having your lawyer[...]
Blog |
Wills, Trusts and Estates
By: 
Do I need a Will? A short answer is most likely. If you possess assets of value, such as chequing or savings accounts, investments, a[...]
Blog |
Real Estate
By: 

Posted October 31, 2023

The Status Certificate is a document written by a condominium corporation that discloses certain financial, governance, and legal information about the condominium corporation and a[...]

Subscribe to Our Newsletter

"*" indicates required fields

Name*
Consent*
This field is for validation purposes and should be left unchanged.