Income Tax Act 2007

Recharacterisation of certain transactions - Transfers of relationship property

FB 12: Pension payments to former partners

You could also call this:

"Pension payments to ex-partners are treated specially for tax purposes."

When you get a pension from a partner, it is treated in a certain way for tax. If you pay some or all of the pension to another person because of a settlement, the tax rules apply as if you were paying the pension to your former partner, according to section DC 3. You are affected by this rule when a partnership or person pays the pension to someone else. The amount paid is treated like a pension payment to your former partner for tax purposes, as stated in section DC 3.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516351.

This page was last updated on 5 April 2026 — View changes

Topics:

Money and consumer rights > TaxesFamily and relationships > Marriage and partnerships

FB 11: Pension payments to former employees, or

"Pension payments to former employees are treated like they are paid to you, even if they go to someone else."

FB 13: Trading stock, or

"What happens to taxes when you transfer trading stock during a relationship property settlement"

Part FRecharacterisation of certain transactions
Transfers of relationship property

FB 12Pension payments to former partners

This section applies for the purposes of section DC 3 (Pension payments to former partners) when a person is entitled to the payment of a pension from a partner in a partnership or from any person, and because of a settlement of relationship property, the partnership, partner, or person pays some or all of the amount of the pension to another person.
Section DC 3 applies to the amount paid as if it were the payment of a pension to the former partner.

Compare

2004 No 35 s FF 17(2), (3)

Notes

Section FB 12 list of defined terms partner: inserted, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section FB 12 list of defined terms partnership: inserted, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).