Can You Be Separated and Still Living Together? CRA Rules, Explained

If you and your spouse have decided to separate, you might assume one of you has to move out right away. But with today’s high housing costs, shared parenting duties, or simply needing more time to sort things out, many couples live in ‘same household separation’ conditions.

This raises a key question — especially during tax season: Can you be considered legally separated for tax and legal purposes even if you’re still living together? The short answer is yes — but proving legal separation while living together to the Canada Revenue Agency (CRA) or a judge takes more than just saying so.

Note: This article focuses on CRA rules for tax-related separation. If you’re looking for information about separation under one roof for divorce purposes, check out our earlier post: “Legal Separation: What to Consider When Living Separate and Apart in the Same Residence.”

Separated and Living Together: What Does “Separated” Mean to the CRA?

The CRA defines a couple as separated when they live apart for at least 90 consecutive days due to a breakdown in their relationship. After those 90 days, your cohabitation separation is recognized retroactively from the start date of living apart — even if you’re not divorced or formally ended your common-law relationship.

If you continue to live together during separation, your relationship must meet certain criteria to be considered legally separated. There’s also a specific CRA process for updating your marital status when the separation is still within that 90-day period. You can handle this change online via the CRA portal.

Importantly, you may still be considered to have a spouse if you’re involuntarily separated — for instance, due to overseas work, school, incarceration, or health issues — and not due to a relationship breakdown.

Can You Be Separated and Living Together?

Absolutely. The CRA acknowledges that many couples going through separation while living together remain in the same home temporarily due to financial or parenting reasons. However, you must clearly be living “separate lives” for the separation to be valid. This includes:

• No romantic relationship
• No shared bedroom or intimate cohabitation
• Financial independence
• A clear, mutual intent to permanently separate

So, while your mailing address may be the same, what matters most is how you function within the home.

Financial and Tax Implications of Legal Separation While Living Together

Once your cohabitation separation is acknowledged by CRA, it can significantly impact your taxes and government benefits:

1. Child and Family Benefits

You may qualify for increased Canada Child Benefit (CCB) payments as a single parent. The CRA uses your marital status to calculate your eligibility, so it’s critical to report living together during separation accurately to avoid overpayment or repayment demands.

2. GST/HST Credit

Your GST/HST credit could increase based on your updated family income status. Promptly reporting your legal separation while living together helps prevent discrepancies.

3. Spousal Support Deductions

If you pay court-ordered or agreement-based spousal support, you may qualify for a tax deduction — but only if your separation is clearly accepted and documented by the CRA.

How to Prove You’re Separated While Living Together

This is where things can get tricky. If you’re still sharing a residence, the CRA may require proof that your cohabitation separation is authentic. Here’s how to build your case:

Separate Sleeping Arrangements

Demonstrate that you sleep in different rooms or on separate floors. Documenting this can help if your status is challenged.

Separate Finances

Show that you’ve opened individual bank accounts, stopped using joint credit cards, and no longer file taxes together.

Social Independence

Attend family functions separately and ensure friends and relatives are aware of your separation. Affidavits from third parties — such as a lawyer or counselor — can provide added support.

Legal Documents

Having a written separation agreement and correspondence with a lawyer or mediator can be strong evidence of a legal separation while living together.

Key Takeaways

• Yes, you can be separated and living together, as long as your relationship has genuinely ended.
• The CRA considers how you live, not just where you live.
• After 90 days of living separate lives during cohabitation separation, update your status with the CRA.
• Keep detailed records: separate finances, written agreements, and third-party affidavits all help support your claim.
• Consult a family lawyer for personalized advice and to ensure your separation is clearly recognized by the CRA.

Final Thought

Just because you’re sharing a roof doesn’t mean you’re still sharing a life. If the relationship is over and you’re treating it that way, you’re separated — no moving truck required.

If you’re unsure whether your separation while living together qualifies under CRA rules, contact our office for tailored legal guidance today.