Gurtej Sandhu – Canada Child Benefit – Before and After Separation, Published June 11, 2026.
One of the important financial issues after the spouses separate is determining how they will share the Canada Child Benefit (CCB) and who can apply.
The CCB is a tax-free monthly payment from the Canada Revenue Agency (CRA) to support eligible families with the cost of raising children under the age of 18. Sometimes, the CCB may also include an additional amount for the child disability benefit and any other provincial or territorial programs. For BC, the CRA administers the BC Family Benefit and BC Climate Action Tax Credit.
To be eligible for the CCB, the applying parent must meet all of the conditions set out by the CRA. They must:
- live with a child(ren) who is under 18 years old;
- be primarily responsible for the care and upbringing of the child(ren);
- be (or a spouse or common-law partner must be) a resident of Canada for tax purposes and be a:
- Canadian Citizen;
- Permanent Resident;
- Protected person or a protected person;
- Temporary resident; or
- Individual who registered or entitled to be registered under the Indian Act; and
- be not applying for a foster child who is already receiving the Children’s Special Allowance.
(Complete eligibility criteria can be found here)
Before and After Separation
Before separation, generally, the parent who is “primarily responsible” for the child(ren), is eligible to apply for and receive the CCB. The female parent is typically presumed as being primarily responsible for the care and upbringing of the child(ren). However, if the other parent is primarily responsible, they should apply and attach a signed letter from the female parent stating that they are the one who is primarily responsible for the care and upbringing of the child(ren).The CRA assesses eligibility based on combined household income and caregiving responsibilities.
After separation, the family unit is effectively divided into two separate households. Each parent must promptly notify the CRA of the change in marital status, typically by updating their information online or submitting the required forms. Any overpayments because of the delay in notifying the CRA may lead to readjustments later on.
The separation triggers a reassessment of eligibility and payment amounts. Instead of one combined benefit, the CRA may split the CCB between both parents depending on their parenting arrangement. Each parent’s individual income is now considered separately, which can affect the total amount received.
The division of the CCB is mainly based on whether the parent in question has “full/primary custody” or “shared custody”.
- Full/Primary custody: CRA considers full/primary custody to be when the child lives with a parent more than 60% of the time. In this case, that parent is required to apply, and they are entitled to receive 100% of the CCB payment.
- Shared custody: If the child lives with either of the parent at least 40% of the time or on an approximately equal basis, then both the parents are considered to have shared custody. In this case, each parent is required to apply for the CCB, and each parent is entitled to 50% of the CCB payment.
The CCB payments are calculated based on the number of children under care of a parent, age of the children and the parent’s adjusted family net income reported in the previous year’s return. The CCB payments are recalculated every July based on the adjusted net family income from the previous year.
Can the separated parents agree on a different allocation of the CCB?
A common situation often arises as to whether the parents can agree (for example, through a separation agreement) to a specific custody arrangement for the purposes of allocation of CCB payments, even though the actual living arrangements are different.
The allocation of the CCB is solely a matter for the CRA. The CRA will determine the allocation of the CCB between the parents based on the actual living arrangements, irrespective of whether the parents agree to a different allocation in a separation agreement. Even though a court order may state who should receive the CCB, the CRA is bound by the Income Tax Act which governs who receives the CCB.
For their review of the custody arrangements, the CRA may request supporting documentation, such as parenting/separation agreement or a court order clearly explaining the type of custody arrangement, school records, daycare records, a letter from a person in a position of authority etc., to verify the schedule. Therefore, clear and consistent documentation of your parenting schedule can help avoid disputes and ensure the CCB is allocated correctly.
Navigating the CCB allocation issues after separation requires careful attention to both legal arrangements and practical realities. If you find yourself in a similar situation, one of our lawyers at Portside law would be happy to assist.
Disclaimer – By contacting Portside Law Corporation through email, phone or direct message does not establish an attorney-client relationship. An attorney-client relationship is formed once both parties agree in writing to such a relationship. The information found in this document is of general nature and is not intended to be legal advice. Please contact our office to speak further about any particular legal question you may have.