What happens to your pension when you divorce in South Africa?
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What happens to your pension when you divorce in South Africa?
The pension interests of the spouses will form part of the parties’ joint estate and the non-member spouse will be entitled to claim 50% of the pension interest of the member as at the date of the divorce. The parties may also agree to share the pension interest in a settlement agreement.
Can my ex wife go after my retirement?
It all depends on the type of pension that you have. In some pension plans your spouse will be allowed to receive lump sum payments as early as the time that the QDRO is approved. In the event that you have a 401(k) or IRA it is more likely that your spouse will receive monthly payments from the retirement plan.
Is divorce settlement money considered income?
Maintenance payments made by a spouse or that are attributable to a payment made by a spouse is exempt income of the receiving spouse. If a spouse receives income from an existing trust as maintenance payments instead of directly from the other spouse, tax will be payable on that income.
