Until now, at divorce the parties could at their divorce settlement agree to divide the pension interest, but the non–member spouse received benefits only when the member spouse exited the Fund. The non-member did not receive any investment growth on his or her share of the benefits. However the member spouse is responsible for all income tax payments.
Advantage to a non-member spouse is that they can now earn a return on investment, if they invest their portion. It should however be noted that with divorces after 1st March 2009, the non-member spouse carries the tax liability (at the new tax rate applicable on withdrawal).