Divorce seems to be another reality of life. Your retirement benefits form part of your spouse’s overall assets and a portion is often paid to the ex-spouse in the case of divorce. The portion paid to your ex-spouse will depend on the percentage specified in your Divorce Order.

1. How much of my benefit will be paid to my ex-spouse should I be divorced?
Your retirement benefits form part of your overall assets and a portion is often paid to the ex-spouse in the case of divorce. The portion paid to your ex-spouse will depend on the percentage specified in your Decree of Divorce. It is your responsibility to notify the Funds of a Decree of Divorce and to provide the Funds with a copy thereof.

2. What information must be contained in my Decree of Divorce?
To ensure that the benefit can be paid from the Fund to your ex-spouse, you should ensure that the Decree of Divorce contain the following:

  • The Full name of the Fund
  • That the Fund is ordered to pay the benefit to the non-member spouse; and
  • The value of the benefit either as a % or Rand Value.
  • Please see below a suggested clause to be used in the Decree of Divorce to ensure that the Decree is legally binding on the Fund.

The non-member spouse is entitled to 50% of the member’s pension interest in the Columbus Retirement Fund (Pension and Provident Sections). The Columbus Retirement Fund (Pension and Provident Sections) are ordered to pay this amount to the non-member spouse.

3. When will the benefit be paid to my ex-spouse?
Please note that due to the recent Changes to the Divorce Act, the non-Member spouse can receive the benefit from the Fund immediately, subject to the Decree of Divorce complying with the requirements of the Act. The payment will be processed once you’ve provided the Funds with your Divorce Order. This should happen as soon as possible after your date of divorce.

4. Who will pay the tax on the benefit paid to my ex-spouse?
Previously, the member paid the tax on the ex-spouse’s benefit, except if the Divorce Order stated otherwise. With effect from 1 March 2009, the ex-spouse pays the tax on his or her benefit.