I have a client who got divorced during 2018. He agreed to sign over the title to their house, and pay his ex-wife an additional $200,000. She wanted the cash immediately, so he withdrew it from his RRSP. His lawyer is looking into legal precedents whereby he might defer the RRSP income over the next few years (rather than pay tax on the whole amount now). He asked me if there were any tax provisions that might help, and I can’t think of any that could be applied after the fact (other than taxpayer relief).
Anyone offer suggestions?