Legal Review
This guide was reviewed by Deepa Tailor, Senior Family Lawyer, to ensure compliance with Ontario family law.
Changes to US tax law — including the elimination of the alimony deduction — have cross-border implications for Ontario residents. Understand how American legal changes affect your spousal support obligations.
The 2017 US Tax Cuts and Jobs Act eliminated the federal tax deduction for alimony payments for agreements signed after December 31, 2018. Canadian spousal support is governed by Canadian law and is not directly affected — but cross-border couples, US citizens living in Canada, and those with US-sourced income face unique complications that require specialized legal and tax advice.
Understanding the fundamental differences between Canadian and American spousal support law is essential for cross-border situations.
These are the most common situations where US law changes intersect with Ontario spousal support obligations.
US citizens are taxed on worldwide income regardless of residence. A US citizen paying spousal support in Ontario may face different tax treatment than a Canadian citizen in the same situation. Cross-border tax advice is essential.
If you have a Canadian support order but the payor moves to the US (or vice versa), enforcement becomes complex. Ontario has reciprocal enforcement arrangements with many US states through the Interjurisdictional Support Orders Act.
If the payor earns income from US sources, calculating support under the SSAG requires careful treatment of US taxes, currency conversion, and any applicable tax treaties between Canada and the US.
A US divorce order can be registered and enforced in Ontario, but the terms may differ from what an Ontario court would have ordered. Variation applications in Ontario apply Canadian law to the existing order.
In Canada, periodic spousal support payments are deductible by the payor and taxable to the recipient. This tax treatment is built into the SSAG formula.
Lump sum payments are generally not deductible and not taxable — which affects how courts structure support awards.
For US divorce agreements signed after December 31, 2018, alimony is no longer deductible by the payor and no longer taxable to the recipient.
This fundamentally changes the economics of support negotiations for US couples — and has implications for cross-border situations.
Interjurisdictional Support Orders Act — Ontario
Divorce Act — Canada
laws-lois.justice.gc.ca
Canada-US Tax Treaty
Not directly — Canadian spousal support is governed by Canadian law and the SSAG. However, if you are a US citizen, earn US-sourced income, or have a US divorce order, there may be cross-border implications that require specialized advice.
Yes. Ontario has reciprocal enforcement arrangements with many US states. A US support order can be registered in Ontario and enforced through the Family Responsibility Office.
US income must be converted to Canadian dollars and adjusted for US taxes paid. The SSAG are then applied to the adjusted Canadian-equivalent income. Currency fluctuations can create ongoing complications.
You can still enforce your Ontario support order through the Interjurisdictional Support Orders Act, which provides a mechanism for cross-border enforcement between Ontario and participating US states.
In most cross-border situations, yes. A Canadian family law lawyer handles the Ontario legal issues, while a US attorney addresses American law and tax implications. Coordination between both is essential.
Written & Reviewed By
Founder & Managing Director, Tailor Law · Mississauga, Ontario
Deepa Tailor is a leading Ontario family law lawyer with experience in cross-border family law matters, including cases involving US citizens and US-sourced income. She founded Tailor Law to provide accessible, high-quality family law services across the GTA.
Our lawyers understand the intersection of Canadian and US family law. We will protect your interests on both sides of the border.
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