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TaraTo
Level 1

Complicated separation question

What are the implications in the following situation:


Husband and wife are separating. They have 2 properties - one principal residence in one province and one rental in another province.

 

both properties are on the husband’s name only, but both were acquired during marriage (mortgage on the husband name). 

the husband will move to the rental property, but in a portion of the property (the tenant will remain there as they mutually agreed). The wife and the kids remain in the primary residence. the husband will keep helping with the payments, etc, and they won’t be remortgaging at this time. 

what are the tax implications given they are not divorced yet? 

 

there is section 73, but not very clear to me what needs to be done in this situation.

 

thanks in advance