Is Spousal Support Taxable in Alberta? What Payers Should Check

Payers often ask whether they can deduct support, and recipients ask whether they must report it. The answer depends on tax rules that this page does not cover, so how it applies to you is worth confirming with an accountant or a lawyer.

This article does not set out the tax rules. It explains what in your support arrangement tends to matter, what documents to gather, and why an accountant or tax professional should confirm your position before you file.

This article covers the law of Alberta.

Family law and tax law are separate

A family law question and a tax question are not the same question. A court or agreement deals with support between you and your former partner, and this page does not cover how support is treated on a tax return.

Because tax treatment can depend on your own documents and circumstances, it is risky to rely on what a friend or former partner did. How this applies to you depends on your situation, so it is worth confirming with a tax professional.

Which family law applies to you also matters for understanding your order. Married spouses who are not seeking a divorce can still claim spousal support under the Family Law Act, while unmarried partners cannot use the Divorce Act. When a court sets support under the Divorce Act, it considers the condition, means, needs and other circumstances of each spouse.

Details in your arrangement that may matter

The support itself can take different forms. Under the Divorce Act, a court may order spousal support as a lump sum or periodic payments, and may order one spouse to secure or pay it. The order may be for a definite or indefinite period or until a specified event occurs. An interim order can also be made while the main application is decided.

• Whether the payment is lump-sum or periodic.
• Whether the support is interim or final.
• Whether it comes from a court order or from an agreement between you.
• Who it is paid to, since support may be owed between married spouses, former spouses or adult interdependent partners.
• Whether any part is child support, since courts give priority to child support when both are claimed.

Keeping support and child support apart

When child support and spousal support are both claimed, the court gives priority to child support. This means the two amounts should be clear in your order or agreement. If they are blended or unclear, ask a lawyer to clarify before tax season, because a tax professional will need to know what each payment is for.

Orders can also change over time. Under the Divorce Act, before varying a spousal support order the court must be satisfied that a change in the condition, means, needs or other circumstances of either former spouse has occurred since the order. Under the Family Law Act, the ground for varying partner or spousal support is a change in the condition, means, needs or other circumstances of either party. Keep a record of any change, because your tax professional may need to know when it took effect.

Documents to gather

• Your court order, including any interim order, and any variation.
• Any separation or support agreement, with its date and signatures.
• Payment records, including any from the Maintenance Enforcement Program.
• Records of any lump-sum payments.
• Any later changes or arrears.

Unless you and the other party agree or the court orders otherwise, the Maintenance Enforcement Program collects and enforces spousal and partner support payments in Alberta.

Also note whether support ended. Under the Family Law Act, unless the court orders otherwise, a support order terminates on the death of the person receiving support, and arrears owing before termination are not affected.

What to do next

Take your order, agreement and payment records to an accountant or other tax professional before you file, and ask how your specific arrangement is treated. If your order is unclear about amounts or type of support, a family lawyer can tell you whether it can be clarified or changed. Remember that a support agreement cannot vary an existing support order under the Family Law Act, so changes should be made properly.

Frequently asked questions