Deduct divorce legal fees

AI summary

Petitioners ask the Government of Canada to amend the Income Tax Act so both parties in a divorce or legal separation may deduct legitimate legal fees as involuntary transaction costs from taxable income.

AI summaries describe petitioners’ requests and claims. Consult the official record for the full text.

Official petition

Petition to the Government of Canada Marriage in Canada is a civil contract governed by federal and provincial law. The state neither requires nor recognizes any religious dimension; As a purely civil contract, marriage is legally and functionally identical to a business partnership; Its dissolution mirrors a partnership wind-up, involving asset division, liability settlement, and ongoing financial obligations; Participation in family court proceedings is involuntary. Canadians cannot opt out without severe legal and financial consequence; Legal fees incurred dissolving a business partnership are tax deductible as legitimate transaction costs; Legal fees incurred dissolving a marriage, an identical legal and financial process, receive no equivalent tax treatment; Divorce is one of the leading causes of financial devastation for Canadians of all incomes, and legal costs are directly proportional to the assets being divided; This inconsistency creates an inequitable and unprincipled distinction in the Income Tax Act with no justifiable basis; We, the undersigned, citizens of Canada,, call upon the Government of Canada to Amend the Income Tax Act to allow both parties in a divorce or legal separation to deduct legitimate legal fees from taxable income, recognizing these as involuntary transaction costs arising from the dissolution of a civil contract.

Government response

No government response is available yet.