C is essentially what I do.ace604 wrote: ↑ Not really a reply to you per se, but this brings up another reason for the higher earner to pay all the bills ... income-splitting (now, not later). You can lower the marginal tax rate on any non-registered savings/investments this way.
e.g. In a 75/25 household, if you split expenses 50/50 or 75/25 and expenses are say 20, then either:
a) 75 pays 10 and 25 pays 10 for 50/50 splt, or
b) 75 pays 15, and 25 pays 5 for 75/25 split
INSTEAD, if you are truly thinking as a 50/50 team trying to maximize your potential, you should do:
c) 75 pays 20, 25 has full 25 available to save/invest and pay lower marginal tax rate on any of those non-registered income/gains
Not sure I saw this mentioned yet in this thread.
I did mention above regarding spousal rrsp. For example, if you are truly a 50/50 or some other split, your wife may buy her own rrsp and you buy your own rrsp with the remaining money you each have.
This means neither will likely max out the higher income earners rrsp credit. Better to pool the money and put money where it makes the biggest impact.
For me, I don't pool money because I earn enough to max everything out.
Another example is, I had 2 rental units before the marriage. I changed the ownership so she claims the rental income. Taking advantage of her lower tax bracket. Now, if she leaves me... She got all my cash in her rrsp and my 2 condos... Lol