Did You Know: You May Be Able To Claim Family Law Legal Fees On Your Taxes

Did You Know: You May Be Able To Claim Family Law Legal Fees On Your Taxes

March 2, 2023

Tax season is upon us once again. Did you know that you could qualify to claim certain legal fees on your taxes? Be sure to speak with your family lawyer about providing you with a letter if you qualify.

This could be a huge benefit or a missed opportunity if you do not have a letter outlining the portion of your legal fees for things such as: child support and spousal support payments on Line 22100 – carrying charges, interest expenses, and other expenses, or Line 23200 – other deductions in certain circumstances.

Canada Revenue Agency recently noted in Income Tax Folio S1-F3-C3 that a recipient of support can deduct legal fees to:

“Establish the amount of support payments from their current or former spouse or common-law partner; establish the amount of support payments from the legal parent of their child (who is not their current or former spouse or common-law partner) where the support is payable under the terms of a court order; an increase in support payments; defend against a reduction in support payments; collect late support payments; or request that child support payments be non-taxable”.

In cases of separation and divorce, most of the time the legal fees are not limited to support issues and therefore your lawyer can assist you in determining the portion of their legal fees that was related to support. For example, if you filed for divorce and included a request for a parenting order, child support and a division of marital property and debts, only a portion of those legal fees will qualify.

You should note that only a recipient of support may deduct a portion of their legal fees and that a payor of support cannot deduct legal fees to “establish, negotiate, contest, reduce or terminate the amount of support payment”.

There are certain exceptions when it comes to recipients making a claim as well and you should always speak to your accountant if you have any questions about making a claim for legal fees on your taxes.

Related Articles

This Month in New Brunswick Family Law – April 2023

GM v JG, 2023 NBKB 57 Justice Danys R.X. Delaquis Subject Matter: Parenting Orders | Jurisdiction The parties have a 5-year-old child, who was born in New York. The Applicant is a Canadian citizen living in Saint John and the Respondent is an American citizen living in New York. The child has dual citizenship. The […]

read more

Mind your business: Business Assets, Professional Corporations & Divorce

Business owners or the spouse of a business owner encounter unique considerations when facing a divorce. The Marital Property Act’s Treatment of Business Assets The New Brunswick Marital Property Act, RSNB 2012, c 107 [hereinafter the “Marital Property Act”] exempts business assets from division with a spouse upon the breakdown of a marriage. Business assets […]

read more

This Month in NS Family Law – October 2021

Richardson v. Richardson, 2021 SCC 36 Justices Wagner C.J. and Moldaver, Karakatsanis, Côté, Brown, Rowe, Martin, Kasirer and Jamal Issues: Best interest of the child | Custody The parties have a 16-year-old daughter and a 10-year-old son. The dispute revolved around custody of the two children and whether it is in their best interests to […]

read more
view all
Cox & Palmer publications are intended to provide information of a general nature only and not legal advice. The information presented is current to the date of publication and may be subject to change following the publication date.