How Domestic Contracts Address RESPs and Children's Savings in Ontario

Most separating parents assume a Registered Education Savings Plan is simply "the kids' money" and will sort itself out. Legally, it doesn't work that way. An RESP has a subscriber — usually one or both parents — who controls the account, decides on withdrawals, and can, in some circumstances, collapse it entirely. If your separation agreement or marriage contract is silent on the RESP, that control can become a source of real conflict years down the road.

This guide walks through what a well-drafted RESP clause should cover, and how separation agreements commonly handle a child's savings more generally.

Why the RESP Needs Its Own Clause

An RESP is a registered account, not a joint asset like a bank account or a home. The person (or people) named as subscriber holds legal authority over the account — including the power to change beneficiaries, stop contributing, or in some cases wind the plan up — regardless of what either parent might assume is "fair." Separation doesn't automatically split or freeze that authority.

That matters because:

• One parent may be the sole subscriber even though both parents contributed
• A subscriber can generally close the account or redirect funds without the other parent's sign-off, unless the account is structured jointly or the agreement restricts it
• Government grant money added to the RESP is generally tied to using it for the child's education, and collapsing the plan early can trigger repayment of those grants and tax consequences on the growth
• Ongoing contributions are a form of child-related expense that parents may want to formally share, similar to other special expenses

None of this is unique to Ontario family law — it flows from how RESPs work federally — but the separation agreement is the tool that turns "we should keep contributing" into something enforceable.

What the Contract Should Address

A thorough RESP clause typically deals with each of the following:

1. Who remains subscriber — whether the account stays with one parent, becomes a joint subscription, or is split into separate accounts for the child
2. Continued contributions — whether both parents will keep contributing, in what proportion, and whether this is treated as a special expense to be shared alongside other child-related costs
3. Restrictions on withdrawals or collapsing the plan — a requirement that neither parent can withdraw funds or close the RESP without the other's written consent, or without a genuine educational purpose
4. Reporting — a requirement that the subscriber periodically confirm the account balance and status to the other parent
5. What happens if the child doesn't pursue post-secondary education — how any remaining funds, and any government grant repayment or tax consequences, will be handled
6. What happens if a parent misses contributions — whether missed contributions can be enforced the same way as other support-related obligations

Common Approaches Compared

Not every option is available for every RESP — providers have their own rules about splitting or changing subscribers, and moving money between plans can have tax and grant implications. This is an area where the practical mechanics with your financial institution need to line up with what the agreement promises.

Contributions as an Ongoing Obligation

Where both parents intend to keep contributing to an RESP after separation, the agreement should treat this the same way it treats other recurring child-related costs: specify the expected contribution (or a formula, such as a percentage of income), how often it's due, and what happens if a parent stops. Contribution obligations set out in a domestic contract don't automatically come with the same enforcement tools as court-ordered child support — that's a reason many parents choose to have the support and expense-sharing terms of their agreement filed with the court, so the Family Responsibility Office's enforcement tools are available if a parent falls behind.

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