Forums » Splitting the Financial Costs of Raising a Child

Setting Up Co-Parenting Bank Accounts

    • 2 posts
    October 25, 2012 7:43:45 PM EDT
    I've been having some interesting discussions with a friend who co-parented with a friend of hers a few years ago. She and her co-parent set up joint bank accounts that they both contribute into each week. I think a better way is to simply give a monthly check to my female co-parent since she'd be raising the baby in her house for the most part.  If anyone is aware of any tax consequences of one over the other, I'd love to hear it.
    This post was edited by FamilyByDesign at January 5, 2013 1:35:48 PM EST
    • 1 posts
    January 5, 2013 3:12:57 PM EST
    Might be some tax consequences in relation to "gifting" to someone who you're not married to so you should look into that...
    • 4 posts
    November 1, 2013 11:10:34 PM EDT
    I never thought of the joint bank account, that's a good idea I think, but I guess also cutting a check too is ideal.
  • May 7, 2014 11:17:34 PM EDT
    I live in Canada so I actually called the CRA (Canada Revenue Agency) regarding this issue. In Canada, a spousal or child support payment is only considered as such if there is a court order mandating it, or if there is a written agreement, e.g. a Co-Parenting Agreement signed by both parties should suffice. The agreement should specify that payments are to be made periodically and in what amounts. In the case that a payment qualifies as a support payment as per CRA's definition, the recipient parent is able to claim a deduction (it seems) for the full amount.

    Here's the relevant link on the CRA website:

    In cases where there isn't an agreement, I was told that as a recipient, I do not have to declare any received income. I was advised to keep a paper trail in case I was ever asked re: sources of income.

    My co-parent lives in Mexico. Since I didn't meet him through this site, but rather, in personal life, he is not yet on board with signing a Co-Parenting Agreement (unfortunately), though I hope I can help him change his mind.

    We are on amiable terms nonetheless, and his plan is to open a Mexican bank acct. in his name, and to give me a bank card. I then could use that bank card to withdraw funds from any ATM in Canada. And again, as per CRA, I would not have to declare that income; I'm guessing because it's assumed to have been taxed at source (and Canada & Mexico have a tax treaty to prevent double taxation.)

    Anyway, that's just what I found out re: Canada. Things may be different in other countries.

  • April 15, 2016 2:39:10 AM EDT
    Even I had a joint account but don't this it is worth.