South African court orders pension fund to retain 50% of man's payout for his wife

Tuesday, April 29, 2025 - The Johannesburg High Court has issued an interdict preventing the Government Employees Pension Fund (GEPF) from paying out 50% of a man’s pension benefit pending the finalization of his divorce. The court found it unusual that the man, who was recently dismissed from his job and had failed to honor his promise to increase child maintenance, was now able to fund the opposition to his wife’s court application.

The couple, married in community of property, had been undergoing divorce proceedings since November 2023. The wife argued that her husband's recent dismissal left the GEPF in a position to process the pension payout unless the court intervened. She further claimed that the man had failed to increase the child maintenance payments for their three minor children, despite prior commitments. Though the husband had promised not to cash in the pension, the wife expressed doubts, pointing to his failure to fulfill previous financial promises.

In her application, the wife argued that she was entitled to 50% of the joint estate, as they were married in community of property, and that her husband might attempt to withdraw the pension funds, especially given the abrupt nature of his dismissal.

The husband opposed the application, claiming he had given assurances in November 2024 and February 2025 that the joint estate’s assets would not be squandered, and suggested that his wife’s application was an abuse of the legal process. However, the court was not convinced by his assurances, especially given his recent withdrawal of a similar undertaking regarding child maintenance.

The court noted that the husband failed to demonstrate any significant prejudice if 50% of his pension was frozen and questioned why he had the resources to oppose his wife’s application but could not provide for the maintenance of their children. The judge concluded that the husband’s actions were ill-advised and granted the order to block the GEPF from paying out the pension funds. The husband was also ordered to pay the costs of the application.