DIVORCE

The Divorce Amendment Act, 1989 provides that a party to a divorce action may share in the pension interest of the member of the Fund. The Pension Funds Amendment Act, 2007 introduced a clean break principle with effect from 13 September 2007. This allow a non-member spouse to immediately claim a portion of the member interest, in terms of an enforceable divorce order granted after 13 September 2007.

What are the requirements for a divorce order to be enforceable against a fund?

  • It must state the correct name of the fund concerned
  • It must state that a portion of the members pension interest in the fund be paid to the members former spouse
  • It must order that the fund’s records be endorsed.
  • It must order the fund to pay the pension interest directly to the non-member spouse.

Example of an enforceable divorce order against a fund

PENSION FUND INTEREST

The Defendant/Plaintiff is a member of the Germiston Municipal Retirement Fund and holds pension interest therein as defined in Section 1 of the Divorce Act, 70 of 1979 (“Divorce Act”)

In terms of Section 7(7) of the Divorce Act, the pension interest is deemed to form part of the Defendant’s/Plaintiff’s assets.

In terms of Section 7(8)(a) of the Divorce Act, it is ordered that ____% (or R_________) of the Defendant’s/Plaintiff’s Pension Interest, with membership number ___________ in the Germiston Municipal Retirement Fund as at the date of divorce be  assigned to the Plaintiff/Defendant.

The Germiston Municipal Retirement Fund is ordered to endorse its records to the effect that the Plaintiff/ Defendant  is entitled to ______% (or R____________) of the Defendants’/Plaintiff’s Pension Interest held therein as at the date of divorce.

The Germiston Municipal Retirement Fund is ordered to calculate the Plaintiff’s/Defendant’s _____% (of R_________) share of the Defendant’s/Plaintiff’s pension interest as at the date of divorce and pay it directly to the Plaintiff/Divorce or transfer it.

The required Application for payment in terms of divorce (click here) together with the necessary documentation, must be submitted at the office of the Fund.