Overview

When a marriage or common-law partnership breaks down, an amount can be transferred directly from one individual's Tax-Free Savings Account (TFSA) to their current or former spouse or common-law partner's TFSA without affecting either person's contribution room. This transfer must be completed directly between the TFSAs by the issuer.

Eligibility

The transfer is considered a qualifying transfer and won’t reduce the recipient's eligible TFSA contribution room if you meet both of the following conditions:

• You and your current or former spouse or common-law partner were living separate and apart at the time of the transfer.
• You’re entitled to receive, or required to pay, the amount under a decree, order, or judgment of a competent tribunal, or under a written separation agreement to settle rights arising out of your relationship on or after the breakdown of your relationship.

How to initiate the transfer

If you meet the eligibility requirements, you can start the transfer by following these steps:

1. Upload your separation agreement.
2. Contact our support team to initiate the transfer.

Impact on TFSA contribution room

A qualifying transfer won’t reduce the recipient's eligible TFSA contribution room. Since this transfer isn’t considered a withdrawal, the transferred amount will not be added back to the transferor's contribution room at the beginning of the following year.

Additionally, the transfer won’t remove any excess TFSA amount, if applicable, in the payer's TFSA.