Divorce raises difficult questions about registered accounts, and RESPs are no exception. The subscriber has legal control, but family law typically treats RESP balances as family property. Addressing RESP treatment explicitly in a separation agreement protects both parents and — most importantly — the children's education savings.
The named subscriber on the RESP retains legal control of the account during proceedings. However, family courts can and do order changes to RESP accounts. Unilaterally withdrawing, closing, or changing beneficiaries without the other spouse's consent during active divorce proceedings can result in court sanctions.
A subscriber transfer on marriage breakdown is explicitly allowed without tax consequences under Canada's Income Tax Act. Contact your RESP provider with the separation or divorce documentation. The new subscriber assumes control and all future contribution rights.
Grants follow the beneficiary's SIN, not the subscriber. Either parent can continue contributing to any RESP for the child and earning CESG grants. The child's lifetime $7,200 grant limit applies regardless of which parent is contributing or which plan holds the grants.
Explicitly state: which parent holds the RESP, contribution obligations going forward, what the funds will be used for, and any conditions for plan closure or beneficiary changes. Clear documentation prevents future disputes about education savings.
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