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.
The appellant contended that the arbitration clause in the settlement agreement conflicted with section 2(a) of the Arbitration Act.
An application clause will provide for the Pension Funds Act to prevail over the Divorce Act where the Acts’ provisions conflict.
The Association for Savings and Investment SA and the Institute of Retirement Funds Africa also call for amendments not related to the two-pot system to be held over.
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.
