The recipient of child support may be able to claim some of the legal and accounting fees incurred to obtain or enforce child support, as a tax deduction. There may also be situations where legal and accounting fees relating to a spousal support order are deductible.
In general, legal and accounting fees related to the divorce itself, property division, and parenting are not tax deductible. The Canada Revenue Agency (CRA), has specific rules and guidelines about who can make the claim, which fees, the timing, and how much can be claimed. Please contact your accountant or the CRA for more information to see if this deduction may apply to you.
Here is an excerpt from the CRA website. This is not legal or accounting advice. Do consult your accountant.
Legal and Accounting Fees
“As the recipient, you can deduct, on line 22100 of your tax return, legal and accounting fees incurred:
- to collect overdue support payments owing
- to establish the amount of support payments from your current or former spouse or common-law partner
- to establish the amount of support payments from the legal parent of your child (who is not your current or former spouse or common-law partner) where the support is payable under the terms of a court order
- to try to get an increase in support payments
As the recipient, you cannot claim legal and accounting fees incurred:
- to get a separation or divorce
- to establish child custody or visitation rights
Legal and accounting fees paid to collect a lump-sum payment that does not qualify as a support payment are not deductible (see Lump-sum payments).”
Support Payments – Canada.ca Information Retrieved February 24, 2022
For more tips, see What To Do After Separation or talk to Ceri or another of our lawyers to get information and advice.
– Written by Ceri Chwieros