Can A Divorced Woman Collect Her Ex-Husband’s Pension?
Can A Divorced Woman Collect Her Ex-Husband’s Pension?
Yes a divorced woman can collect her ex-husbands pension If the divorce order includes a section 7(8) clause from the Divorce Act and follows certain rules. The divorced woman will have to approach the pension fund and provide them with the decree of divorce and they should process the claim.
A claim under the Divorce Act can only be made while the husband, wife, or civil union partner is still a member of the pension fund. Once they leave the fund, either due to retirement or early withdrawal, they receive the benefit, and there is no longer any pension interest to claim. If the benefit is received before the divorce, it is treated like any other asset in the couple’s estate.
For couples married or in a civil union with community of property, each partner can claim half of the other’s pension interest as of the date of divorce.
What is Pension Interest?
Pension interest is defined in the Divorce Act for most types of retirement funds, except preservation funds. Under the Pension Funds Act, pension interest represents the amount a member would receive if they exited the fund on the divorce date. For pension and provident funds, this means the benefit they would get if they resigned at that point.
In the case of retirement annuities, pension interest is calculated as the total contributions made up until the divorce, plus simple interest. For preservation funds, it refer to the hypothetical amount the member would receive if they were to leave the fund on the divorce date.
Instead of taking a percentage of the pension interest, a fixed rand amount can be allocated to the non-member spouse, provided it does not exceed the pension interest’s total value.
The law does not permit any additional interest on the portion awarded to the non-member spouse, as the Act already accounts for growth on that amount. Interest will only apply if the pension interest is not paid within the legally required time frame following the divorce.
Forms of Marriage Arrangements in South Africa
In South Africa, three main marriage arrangements determine what a wife is entitled to after divorce:
- In Community of Property:
This is the standard arrangement when there is no prenuptial agreement. Under this system, both spouses jointly own all the assets and debts accumulated during the marriage. If they divorce, everything is generally divided equally.
- Out of Community of Property (with accrual):
In this system, each spouse maintains ownership of their assets, but they share any increase in value that occurs during the marriage. If the wife’s assets grow less than her husband’s, she can claim half of the difference.
- Out of Community of Property (without accrual):
In this arrangement, each spouse fully owns their assets and debts, and there is no sharing unless both agree to it beforehand.
A divorced woman can be able to collect her ex-husband’s pension, but it depends on several factors. These include the type of pension plan, how long they were married, and the specific divorce laws used by the pension provider. I hope the provided information is helpful, share your thoughts below in the comment section.