Is an RESP subject to equalization?
Is an RESP subject to equalization?
An RESP can be relevant in equalization, but its treatment can be fact-specific.
In many cases, the court will examine:
• who is the subscriber;
• who contributed the funds;
• whether the RESP is intended for the children’s education;
• the value of the subscriber’s rights;
• whether government grants are included;
• whether any portion should be excluded or preserved for the child;
• whether the RESP should remain intact for post-secondary expenses; and
• whether the parties agree to transfer or jointly administer it.
An RESP is often treated differently from a normal bank or investment account because it is
typically established for the child’s education. However, it may still have value connected to a
spouse’s property rights depending on how it is structured. A common practical resolution is to
preserve the RESP for the child and address contribution, control, and use of the funds in the
separation agreement or court order.