Divorce and pension interest: essential tips for navigating your rights

THE term 'pension interest' arises in divorce proceedings and refers to a notional amount representing the retirement benefit the member spouse would receive from their retirement fund at the date of divorce. Calculat-ing pension interest enables divorc-ing spouses to share in each other's retirement benefits immediately after divorce rather than waiting until formal retirement.

- SHERRY TAPFUMA

The pension interest calculation takes place at the divorce date, provided the member's spouse is still an active member of the retirement fund at that time.

For pension and provident funds, if the member spouse resigns or retires before the divorce date, no pension interest exists, and the benefit accrues solely to the member spouse, thereafter treated as an ordinary asset within the estate.

It is crucial to understand that a divorcing spouse's right to claim pension interest depends significantly on the marital property regime:

• In community of property: Spouses share a single joint estate, and upon divorce, each spouse is entitled to claim 50% of the other's pension interest.