Divorce Orders

A member’s Accumulated Retirement Savings may form part of a 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. The divorce payment will be deducted proportionally from the Vested Share and Non-Vested Share of your benefit.  

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:


UCTRF stands for: University of Cape Town Retirement Fund   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 is not correctly worded, the UCTRF’s Administrator may not be able to pay your ex-spouse any portion of your benefit until the divorce order is corrected, which can take time and cost you money.

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 non-member 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.

 

 



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