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Divorce Orders 

Divorce orders

      

A member’s retirement benefit may form part of the couple’s overall assets and a portion is often paid to the ex-spouse in the case of divorce. The portion paid to an ex-spouse will depend on the percentage specified in the Divorce Order. 


What information should be contained in a Divorce Order?

The following information should be included in your Divorce Order; otherwise the UCTRF cannot pay the ex-spouse directly: 

• The full name of the UCTRF (i.e. the University of Cape Town Retirement Fund) 
• That the UCTRF is ordered to pay the benefit to the non-member spouse 
• The value of the benefit either as a % or Rand value 

If the Divorce Order does not make these provisions, the UCTRF's administrator has no obligation to pay the ex-spouse any portion of the member’s benefit.

Here is a suggested clause to be used in the Decree of Divorce to ensure that the Decree is legally binding on the UCTRF:

The non-member spouse is entitled to xx% of the member’s pension interest in the University of Cape Town Retirement Fund on the date of divorce. The University of Cape Town Retirement Fund is ordered to pay this amount to the nonmember spouse, together with interest earned in the UCTRF on this amount from the date of divorce to the date of payment. 

When will the benefit be paid to my ex-spouse? 

The non-member spouse can receive the benefit from the UCTRF, subject to the Decree of Divorce complying with the requirements of the Act. 

If the claim meets the legal requirements: the Administrator sends a payment instruction form to the ex-spouse to complete. Once the completed form is received, the Administrator applies for a tax directive from SARS and makes payment to the ex-spouse (after deducting any tax that is payable to SARS).

Who will pay the tax on the benefit paid to my ex-spouse? 

The ex-spouse pays the tax on his/her benefit.