Page 23 - P6 Slide Taxation - Lecture Day 7 - Various Topics
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Allocation to spouses on divorce :
As yourself:
1. In terms of what type of order is payment made?
Maintenance order vs Divorce order
2. From which funds are payment made?
Deducted from member's "minimum individual reserve" or not?
BACKGROUND:
Section 37D of the Pension Fund Act was amended!
Referred to as the "clean-break" principle.
What does this mean?
Any amount payable to a spouse due to a divorce are now allowed
to deducted by a registered fund from its member's "minimum
individual reserve" (applicable from 13 September 2007).
Problem? Will this deduction qualify as a lump sum payment or
not?
