TFSA transfers can be made directly to a former spouse or common-law partner's TFSA without affecting their contribution room, if

	the individuals are living separate and apart at the time of the transfer, and
	the transfer is made under a decree, order or judgment of a competent tribunal, or under a written separation agreement

The transfer is not considered a contribution, so does not reduce the contribution room of the recipient.

The transfer is not considered a withdrawal, so will not be added back to the contribution room of the transferor the following year.  The transfer will also not eliminate any excess amount in the TFSA.

Canada Revenue Agency (CRA) information:

RC4466 Tax- Free Savings Account (TFSA) Information Sheet - see Chapter 5 Qualifying Transfers - Upon marriage or common-law partnership breakdown

Tax Tip:  Make sure your financial institution knows that this is a marital breakdown transfer, not a withdrawal and deposit.

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