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.
RC4466 - Tax-Free Savings Account (TFSA), Guide for Individuals - 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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Revised: November 24, 2025