Separated but Still Living Together? What the CRA Considers “Living Apart” in Ontario

Separation can be complex, especially when both spouses continue living in the same home after the relationship has ended. This situation is more common than many realize. Rising housing costs, co-parenting obligations, and logistical challenges often make it necessary for separated couples to remain under one roof—at least temporarily.

If you’re in this situation and wondering whether you're considered legally separated for tax purposes in Ontario, the answer depends on a number of specific factors. The Canada Revenue Agency (CRA) has clear rules on what constitutes a separation, and these rules can significantly impact your tax obligations, your entitlement to child-related benefits, and your overall financial situation.

At Van Delft Law, we help clients across Ontario understand how to navigate separation and divorce, including the tax implications that can arise when you and your former partner still live together.

What Does the CRA Consider a Separation?

According to the CRA, a person is considered separated for tax purposes if they have been living apart from their spouse or common-law partner for at least 90 consecutive days due to a breakdown in the relationship. This 90-day period is essential. Once you have lived separately for 90 days, the effective date of separation becomes the first day you began living apart.

In most cases, living separately means maintaining separate residences. However, the CRA recognizes that in some situations, spouses may still share the same address but live in distinct households within the home. These cases require a closer look at how daily life is being managed between the individuals.

Can You Be Separated While Living in the Same Home?

Yes, it is possible to be considered separated while still sharing the same physical address. The CRA has acknowledged that in certain cases, separated spouses or partners may remain in the same house but live separate lives. This typically applies when each party maintains self-contained living quarters and no longer shares meals, finances, or social activities.

Key factors that the CRA may consider include whether you have separate bedrooms, separate cooking and bathroom facilities, and whether you present yourselves publicly as separated. If you and your former spouse or partner are essentially running two independent households under one roof, you may still qualify as separated in the eyes of the CRA.

It is important to understand that these determinations are made on a case-by-case basis. Supporting documentation is essential if you plan to update your marital status with the CRA while still living together.

Notifying the CRA About a Change in Marital Status

To officially inform the CRA that you are separated, you must complete Form RC65, Marital Status Change. This form should be submitted after you have been living separate and apart for at least 90 days. Timely notification is crucial, as your marital status affects eligibility for tax credits such as the Canada Child Benefit, the GST/HST credit, and the Child Disability Benefit.

When submitting Form RC65, it helps to include supporting documents that clearly show a change in your living situation. These might include a new lease or utility bills showing only one spouse’s name, a change of address on your driver's licence, or confirmation from third-party professionals such as landlords, employers, social workers, or medical professionals.

If one spouse is without a fixed address—perhaps staying with friends or family temporarily—letters from third parties who can confirm the separation may be particularly helpful. The CRA will not rely solely on a court order or separation agreement to determine the date or fact of separation, especially if both parties still reside at the same address.

Why Does This Matter?

Your marital status directly impacts your access to important tax benefits and credits. Failing to report a separation to the CRA may result in overpayments or underpayments of benefits such as the Canada Child Benefit or GST/HST credits. If your status is not updated properly, you may be required to repay benefits that you were not entitled to receive. Likewise, you could miss out on support to which you are rightfully entitled.

If you are negotiating spousal or child support or applying for exclusive possession of the matrimonial home, the timing and documentation of your separation can also influence your legal rights and financial outcomes. That is why it is important to take steps to clearly document your status and get legal advice tailored to your situation.

Van Delft Law Can Help You Understand Your Separation Rights

At Van Delft Law, we work with individuals and families across Ontario to navigate all aspects of separation and divorce. If you are living under the same roof as your former partner but want to move forward legally and financially, we can help you clarify your separation date, update your status with the CRA, and protect your rights as you plan your next steps.

Book a consultation with Van Delft Law to receive the guidance you need in this unique and often misunderstood area of Ontario family law.