Terminology: Consequence of Dissolution

Question 1

Incorporated settlement
agreement

Answer 1

Agreement is made an order of court and has the same force and effect as an order of court

Question 2

Unincorporated settlement
agreement

Answer 2

Has the same force as an enforceable contract, but is the same force and effect as an order of court

Question 3

Pension benefit

Answer 3

1) The accumulated pension which accrues to a member spouse’s estate when they meet certain
exit conditions
2) i.e. retirement, retrenchment,
dismissal etc.
3) Also right to pension

Question 4

Clean break principle

Answer 4

1) The court strives to make the spouses financially independent of each other after their divorce to make the break between them as complete and
final as possible.

Question 5

Pension interest

Answer 5

1) An interest which has not yet accrued to a member spouse’s estate.
2) Generally not regarded as an asset in a person’s estate, but for purposes of divorce it is deemed an asset by section 7(7) of the Divorce Act 70 of 1979