Tax on pension after divorce

kirky666

ermine wrote: »

That's what usually happens if you payer higher rate tax, you get shafted for 40% tax on all income. I've turned down business because I couldn't face working half for the government. Are you really saying that not only should the ex pay out some of his pension, but he should also limit his income too, or pay a marginal tax of 60% if he sponsors giving his ex's the pension @ 20% tax? Seems a bit rough to me...

Not saying that at all. What I'm saying is that since the pension is shared because my partner gave up work to bring up children then her half share in reality should be a second income for her as it is to compensate for pension she lost by giving up work. i.e. If the pension was split gross then she could get the half share from the company itself and it would be taxed at her own tax rate. Her ex would therefore be no worse off and wouldn't be "sponsoring" anyone.

dunstonh

What I'm saying is that since the pension is shared because my partner gave up work to bring up children then her half share in reality should be a second income for her as it is to compensate for pension she lost by giving up work

And it would have been had you chosen the clean break option and not the option you have at the moment.