Common-Law Partners: Can They Transfer Funds?

It is possible to transfer funds following a common-law partnership breakdown. The primary account owner (the annuitant) can request to transfer funds from their spousal RRSP/RRIF or individual RRSP/RRIF to the individual RRSP/RRIF of their current or former common-law partner. To do this, the annuitant must fill out Form T2220, which must be signed by both the annuitant and the current or former common-law partner. If the signature of the common-law partner is missing, a copy of the decree, order, judgment, or written separation agreement is required.

Transferring funds from a spousal RRSP/RRIF to an individual RRSP/RRIF

If you are the annuitant of a spousal RRSP/RRIF, you can request to transfer funds from your spousal RRSP/RRIF or individual RRSP/RRIF to the individual RRSP/RRIF of your current or former spouse or common-law partner. The ownership of the funds/assets will change to the account owner you're transferring them to.

To do this, you must meet the following conditions:

• You and your spouse or common-law partner must be living apart at the time of the request because your marriage or common-law partnership has broken down.
• The issuer or carrier must be satisfied with the proof of the breakdown.
• The issuer or carrier should ask for a written statement, signed and dated by you and your spouse or common-law partner.
• In the case of an RRSP, you should state that you are no longer living with the person who is identified as the contributor because of the breakdown.
• In the case of a RRIF, you should state that you are no longer living with the person identified as the contributor to any RRSP from which transfers were made to the RRIF in question because of the breakdown of your relationship.

You can transfer funds by filling out Form T2220, signed by both you and your current or former spouse or common-law partner. Send the completed form to the support team of your financial institution. If the signature of your current or former spouse or common-law partner isn’t on the form, a copy of the decree, order, judgment, or written separation agreement is required.

Removing a spousal contributor

If you are the annuitant, you can request to remove the spousal contributor from your spousal RRSP/RRIF. To do this, you must fill out an online Letter of Direction form. You can then transfer your funds/assets from the spousal RRSP/RRIF to a new or existing individual RRSP or RRIF in your name. The account can be with Wealthsimple or another institution.

Note that you cannot convert the spousal RRSP/RRIF account to an individual account. The funds must be transferred to a new or existing individual account.

In the case of a RRIF, the annuitant should state that they are no longer living with the person identified as the contributor to any RRSP from which transfers were made to the RRIF in question because of the breakdown of their relationship.

To transfer funds, you will need to complete Form T2220, signed by both the annuitant and the current or former spouse or common-law partner. Send the completed form to the support team. If the signature of your current or former spouse or common-law partner isn’t on the form, a copy of the decree, order, judgment, or written separation agreement is required.

Filling out Form T2220

Common-law partners can transfer funds following a marriage or common-law partnership breakdown. To do this, they need to fill out Form T2220. This form is used to transfer funds from a spousal RRSP/RRIF or individual RRSP/RRIF to the individual RRSP/RRIF of a current or former spouse or common-law partner. The ownership of the funds/assets will change to the account owner the funds are being transferred to.

The person from whom the money is being transferred (the annuitant) should fill out the form. The T2220 form will ask for personal information, information about the two accounts involved in the transfer, the amount to be transferred, and whether this is all of the accounts or not. It will also ask for the type, name, and fund number of the account the money is being transferred to. If you do not have this information, you can request that your former spouse or common-law partner complete it. If you have multiple registered accounts that you are transferring from, you need to complete separate T2220 forms for each one.

The T2220 form is pivotal in tax-related processes, specifically for claiming taxes on eligible expenditures. It serves as a comprehensive document that categorizes and justifies certain expenses, allowing individuals and businesses to reclaim money on their tax returns. It is important to carefully review the sections of the form that require you to report your financial information, including income, deductions, assets, or liabilities.

Once you have filled out the form completely and accurately, make copies for your records before submitting it to the designated authority or entity. It is advisable to consult with a tax professional or refer to the official guidelines to determine if this form is necessary for your specific situation.

Sending the form to the support team

To transfer funds following a common-law partnership breakdown, you need to complete Form T2220. This form must be signed by both the annuitant and the current or former spouse or common-law partner. If the signature of your current or former spouse or common-law partner isn't on the form, a copy of the decree, order, judgement, or written separation agreement is required.

Once the form is completed, you can send it to the support team. You can do this by post or email. If you are sending it by post, you should include a covering letter that explains what the form is for and why you are sending it. You should also include your contact details, including your name, address, and telephone number. If you are sending the form by email, you should include the same information in the body of the email.

You should also keep a copy of the form for your records. This will help you to refer back to the information if you need to. You can keep a paper copy or a digital copy, whichever you prefer.

If you have any questions or concerns about sending the form, you can contact the support team. They will be able to provide you with more information and guidance on the process.

Transferring funds following a common-law partnership breakdown

In the case of a common-law partnership breakdown, the annuitant can request to transfer funds from their spousal RRSP/RRIF or individual RRSP/RRIF to the individual RRSP/RRIF of their current or former common-law partner. The ownership of the funds/assets will change to the account owner they are being transferred to. To do this, the annuitant must complete Form T2220, which must be signed by both the annuitant and the current or former common-law partner. If the signature of the current or former common-law partner isn't on the form, a copy of the decree, order, judgment, or written separation agreement is required.

In the case of an RRIF, the annuitant should state that they are no longer living with the person identified as the contributor to any RRSP from which transfers were made to the RRIF in question because of the breakdown of their relationship.

The contributor can't be removed from a spousal RRSP or RRIF unless the spouse or common-law partner who contributed to the plan or fund is dead. To remove the spouse from the account, the annuitant must fill out an online Letter of Direction form. Then, the funds/assets will be transferred from the spousal RRSP/RRIF to a new or existing individual RRSP or RRIF in the annuitant's name. The account can be with Wealthsimple or another institution.

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