Abstract:
This mini dissertation relates to the payment of divorce benefits to a former spouse upon divorce and recent amendments that have taken place in the Pension Funds Act 24 of 1956.Particular reference is made to the amendment of Section 37D.This amendment has brought about changes that will contribute positively to the development of South African Retirement Law. The discussion below deals with the unfairness to non-member former spouses before 1st November 2008. An analysis of pension interest taking into account relevant statutory provisions and case law will be dealt with as well. A classification between a member spouse and a former spouse in order to determine who is responsible to pay tax upon divorce. In terms of the Divorce Act 70 of 1979 the former spouse of a retirement fund on divorce could be awarded by the court a portion of the benefits that the member would have received had she/he resigned on the date of divorce. The former spouse was only entitled to receive that share when the member became entitled to a benefit in terms of the rules of the fund which states on his/her retirement or termination of membership which could have been many years after the date of the divorce. Dissolution of Customary marriages will also be discussed and the benefit a divorced spouse has at the dissolution of marriage.
