How are FHSAs handled in a divorce?
FHSAs are counted the same as any other asset in a divorce.
As a part of a settlement, an FHSA can be transferred to the other party’s FHSA, RRSP, or RRIF without incurring any tax penalties. In this case, it would not use the contribution room of the recipient, nor restore any contribution room from the transferrer.
Recipients would still be subject to FHSA restrictions, such as the age limits and homeownership status. If the recipient is ineligible to open an FHSA, the balance can be transferred to an RRSP or RRIF instead without incurring tax penalties.