Interesting article asking the question, can a married couple divorce, share a pension during the divorce to reduce tax liabilities, and then re-marry? In summary, the answer is:-
1) This course of action could lead to a reduced tax liability and an increase of income upon retirement, but this is not guaranteed; pensions are complex and dependent upon specific pension schemes.
2) The transferor of the pension would have transferred half or more of their pension, and if the transferee decided not to re-marry there would be nothing that the transferor could do.
3) When divorcing, the couple would not only need to agree on the pension share, but what is to happen to the house, income and any other assets.
4) Last but not least, the couple would be committing perjury in the course of doing this.
So, I agree with Fiona, other tax planning options should be considered!
This is Money columnist Steve Webb and lawyer Fiona Wood jointly tackle a reader question about shamming a divorce to halve a pension and dodge tax.
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