
ConCourt clears pension obstacle in divorce redistribution claims
Following its 2023 judgment, the Court has removed the separate exclusion that prevented pension interest from being considered in qualifying post-1984 marriages.

Following its 2023 judgment, the Court has removed the separate exclusion that prevented pension interest from being considered in qualifying post-1984 marriages.

The two-pot rules redefine ‘pension interest’ at account level, meaning funds must deduct awarded sums proportionally from the savings, retirement, and vested components.

There is a legal grey area over the calculation of pension interest in divorce settlements and whether funds may now be permitted to make deductions for future maintenance orders.

Understanding the nuances of ‘pension interest’ and ensuring accurate wording in the divorce order is vital to avoid complications.

A specific order in terms of section 7(8) of the Divorce Act is required if spouses want a retirement fund to make a deduction and payment to the non-member spouse.