Pension Sharing advice needed
linclass
Posts: 286 Forumite
Hi
My ex divorced me in November. There is a pension sharing order, on an annuity pension that I'm in receipt of now (I'm still working). The Divorce states my ex will receive HALF of what I receive each month. What I find very ambiguous is, I receive the whole amount payable each month AFTER Tax, and I pay her half of the WHOLE amount direct into her bank account. I have therefore been paying the ex half of the WHOLE amount before tax. As an example, pre tax, I'll use the figure of £200 each month - £100 each before tax, but only £80 each after tax is deducted. Should I in fact be paying her half of the TAXED amount each month? Those Divorce papers state *the Ex will receive HALF of what I RECEIVE* - I only ever receive the money after Tax. Help needed on this one please,
Thanks
My ex divorced me in November. There is a pension sharing order, on an annuity pension that I'm in receipt of now (I'm still working). The Divorce states my ex will receive HALF of what I receive each month. What I find very ambiguous is, I receive the whole amount payable each month AFTER Tax, and I pay her half of the WHOLE amount direct into her bank account. I have therefore been paying the ex half of the WHOLE amount before tax. As an example, pre tax, I'll use the figure of £200 each month - £100 each before tax, but only £80 each after tax is deducted. Should I in fact be paying her half of the TAXED amount each month? Those Divorce papers state *the Ex will receive HALF of what I RECEIVE* - I only ever receive the money after Tax. Help needed on this one please,
Thanks
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Comments
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That sounds like a Spousal maintenance order, not a pension sharing order (where the capital value of the pension would be divided) or pension earmarking order (where the income is split, but the pension company would normally be making payment directly to your ex)
Who drafted the order? What is the exact wording?All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)0 -
Thanks TBagpuss for response. Certainly not a Spousal Maintenance order, I don't have the paperwork to hand at the moment, the agreement was she to receive 50% of what I GET - it didn't stipulate what I get BEFORE tax. There is also the rule that it's only payable until she reaches the age of 65 (she wanted 67), re marries or dies. There can be no changes made to this order whatsoever, apart from any yearly increase that may occur. The amount is paid by me every month, along with child maintenance.
Thanks0 -
you may be better to re-post this over on both the Pensions and Cutting Tax boards...The questions that get the best answers are the questions that give most detail....0
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Thanks mgdavid, I will try,0
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Thanks TBagpuss for response. Certainly not a Spousal Maintenance order, I don't have the paperwork to hand at the moment, the agreement was she to receive 50% of what I GET - it didn't stipulate what I get BEFORE tax. There is also the rule that it's only payable until she reaches the age of 65 (she wanted 67), re marries or dies. There can be no changes made to this order whatsoever, apart from any yearly increase that may occur. The amount is paid by me every month, along with child maintenance.
Thanks
A pension order is paid by the pension company, not by you. even if the order is pegged to the amount of pension you receive. The wording is absolutely critical. It is likely to be a % of the net amount but without the exact wording you can't be sure.All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)0 -
A pension order is paid by the pension company, not by you. even if the order is pegged to the amount of pension you receive.
Not in this case, TBagpuss ... The ex is paid by me by direct debit via online banking on 30th of every month. It is the amount AFTER tax. This is sorted out now, thanks.0 -
Not in this case, TBagpuss ... The ex is paid by me by direct debit via online banking on 30th of every month. It is the amount AFTER tax. This is sorted out now, thanks.
I'm gald you got it sorted out. I am still intrigues about what the exact wording of the order was, as the way you describe it is *very* unusual!All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)0
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