It is critical that the exchange be made at fair market value. Therefore, it is highly recommended that a professional appraiser be retained to determine the fair market value of the particular non-income producing asset being and document this value. It is also advisable that the payment for the non-incomeproducing asset between you and your spouse be documented to provide a paper trail for the Canada Revenue Agency, should they ever audit your tax returns.
It is very important that the non-incomeproducing asset sold by your lower income spouse did not originate as a result of a gift from you. If this is the case, this strategy will not work because the attribution rules will apply. Due to this, you and your spouse should both be prepared to prove how and from whom your lower income spouse originally acquired the non-income producing asset.