Divorce

How can divorce affect your retirement savings?

Here, we will help you understand your rights, your responsibilities and the process involved if you get divorced.

If your divorce order states that your former spouse must get a share of your retirement savings, the Fund must pay them that amount once all the legal steps are completed.

If your divorce order includes a claim against your pension interest, the Fund is required by law to pay the specified portion to your former spouse once all legal requirements are met.

What is your pension interest?

Pension interest is the value of your retirement savings on the date of your divorce.

What makes a divorce order valid?

Only legally married couples with a court-issued divorce order can claim a share of your pension interest. For the Fund to act on the order, it must meet all the following requirements:
  • It must clearly state a claim against the member’s pension interest.
  • It must specify the portion or percentage of pension interest awarded to the non-member spouse.
  • It must name the Woolworths Group Retirement Fund correctly.
  • It must instruct the Fund to make payment directly.

NOTE: Divorces under religious or customary law must be confirmed by a South African Magistrates or High Court before the Fund can act on them.

Payment process and timeline

Once the Fund receives a valid divorce order, the following steps apply:
  • The Fund contacts the non-member spouse within 45 days to confirm whether they want their share paid in cash or transferred to another approved fund.
  • The benefit cannot be split between cash and transfer. They must choose one option only.
  • The non-member spouse must respond within 120 days.

  • Once all required documents are received (certified ID, stamped bank statement or confirmation, and stamped divorce order), the Fund will make payment. Tax will apply to this payment.

The Two-pot System and divorce

Under the new Two-pot System, effective from 1 September 2024, members’ retirement savings are divided into three components:
  • Savings Pot
  • Retirement Pot
  • Vested Pot
When a valid divorce order is received, the deduction applies across all pots proportionally. This ensures that the total fund value on the date of divorce is used in calculating the amount payable to the non-member spouse.

Frequently Asked Questions

Need help? We're here for you

For queries, email WGRFMbrQueries@alexforbes.com.

To submit a claim, email AFDO@alexforbes.com.