SPOUSE SEPARATION

When marital status becomes “separated”:

A spouse or common-law partner is considered separated when they live apart from their partner due to a breakdown in the relationship for a period of at least 90 consecutive days. Once the 90-day period has passed, the separation is recognized as effective from the first day the couple began living apart.

If partners live apart for reasons other than a relationship breakdown, they are not considered separated. Examples include:

• One spouse temporarily working or studying abroad.
• One spouse immigrated to Canada while the other has not yet obtained residency status.
• One spouse being incarcerated.

UFile steps where separation occurs in tax year:

For a tax return, a person is required to declare their marital status as of December 31st of the tax year.

1. If, at the time of preparing the tax return, the couple began their separation during the tax year but 90 days has not yet passed, then the spouses should declare their status as married or common-law.
2. If the couple began their separation during the tax year and 90 days has passed by the time the tax return is being prepared, then the spouses should declare their status as separated. In UFile’s identification section, there is a question, Did your marital status change in 2023. Answer with change, and that will generate a new section, marital status change. In that section, select the appropriate choice for status as of December 31st of the tax year, for example: Married, then separated.

What if the 90 days are over after the tax return is filed?

If the couple separate within a tax year and their returns are filed less than 90 days after separation, each spouse or partner would have reported their status as married or common law on the tax return.

If after the returns were filed the couple reach 90 days of separation, each spouse or partner must notify the CRA of their change in marital status, using the date they first began living apart. In some cases this may trigger a requirement to file a T1-Adjustment for that year, since credits or benefits may need to be recalculated based on the new status.

Reporting a change in marital status:

If spouses have not already reported their change in marital status to the CRA, they should do so. It is not enough to report the change on a tax return.

In general a change must be reported to the CRA by the end of the month following the month in which the status changed. However, a separation should not be reported until after 90 days. There are different ways to report a change in marital status:

• Call CRA at 1-800-387-1193
• Using My CRA
• Mail a Form RC65 to the CRA.

Can spouses live separate and apart in the same household?

For tax purposes, it is possible to be separated yet living in the same household. However, the ex-spouses may face an uphill battle persuading the CRA they are separated, particularly if one of the ex-spouses has children and the separated status results in a higher Canada Child Benefit.

References:

• CRA web page - Marital status