Case Law[2025] ZAGPPHC 600South Africa
P.L.B v L.R.B (36798/2014) [2025] ZAGPPHC 600 (4 June 2025)
Headnotes
by Alexander Forbes and vary the settlement agreement so that each party be liable for 50% of the liabilities/debts incurred during the subsistence of the marriage. [3] For the purposes of ease of reference and ease in reading this judgment, when I refer to the applicant it is the wife (P.L.B) and the respondent is the husband (L.R.B) in both the main application and the counterclaim application.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## P.L.B v L.R.B (36798/2014) [2025] ZAGPPHC 600 (4 June 2025)
P.L.B v L.R.B (36798/2014) [2025] ZAGPPHC 600 (4 June 2025)
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sino date 4 June 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
Case
Number: 36798/2014
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
DATE:
4 June 2025
SIGNATURE
In
the matter between:
P.
L.
B
Applicant
and
L.
R.
B
Respondent
JUDGMENT
DOMINGO, AJ
INTRODUCTION
[1]
This is an application for variation of a divorce
settlement agreement signed by the parties on 18 September 2018 and
made an order
of court on 19 November 2018.
[2]
There are two applications:
2.1
The main application is to vary clause 3.1 of the divorce settlement
agreement
and appoint a Liquidator and Receiver to divide the
remaining assets of the joint estate, including the matrimonial home.
2.2
The second application is a counter-application brought by the
respondent in
terms of which the respondent seeks to claim from the
applicant 50% of the applicant’s pension interest held by
Alexander
Forbes and vary the settlement agreement so that each party
be liable for 50% of the liabilities/debts incurred during the
subsistence
of the marriage.
[3]
For the purposes of ease of reference and ease in
reading this judgment, when I refer to the applicant it is the wife
(P.L.B) and
the respondent is the husband (L.R.B) in both the main
application and the counterclaim application.
BRIEF BACKGROUND
[4]
The parties were married to each other in
community of property. The applicant in this application was the
plaintiff and instituted
the divorce proceedings against the
respondent. The action was unopposed, and the parties concluded a
settlement agreement which
was made an order of court on 19 November
2018.
[5]
Two children were born of the marriage. The eldest
child is currently 27 years old, and the youngest child is presently
17 years
old.
[6]
It is submitted by the applicant that the eldest
child is employed but is still dependant on the applicant to
supplement his income
as his salary is insufficient. The younger
child is still dependant on the applicant and respondent for support
and resides with
the applicant in an RDP house.
[7]
The respondent has submitted that the eldest child
is self-supportive and his salary is sufficient for his needs.
[8]
The applicant seeks the variation of clause 3.1 of
the divorce settlement agreement. Clause 3.1 states the following:
“
Immoveable
property situated at … Khutsong Extension, Mamelodi East,
Pretoria registered in the names of the parties will
be transferred
to a Trust and the beneficiaries shall be the children.”
[9]
It is submitted by the applicant that the trust
envisaged has not yet been created because the respondent refused to
move out of
the matrimonial home. While the respondent has submitted
that the trust had not yet been created due to the applicant not
honouring
her undertaking to register the trust to the benefit of
both children as it was easier for her to do so since she worked at a
law
firm at the time of the divorce.
RELIEF SOUGHT BY THE
APPLICANT: MAIN CLAIM
[10]
The relief sought by the applicant in the main
application is the following:
10.1
An order that clause 3.1 of the Deed of Settlement Agreement signed
by the applicant and
respondent on 18 September 2018 and made an
order of court on 19 November 2018 be varied and set aside.
10.1
The appointment of a Liquidator and Receiver to divide the remaining
assets of the joint
estate including the immovable property
(matrimonial home).
10.2
The counterclaim application be dismissed for lack of merit;
10.3
Costs of this application be against the respondent.
RELIEF SOUGHT BY THE
RESPONDENT: COUNTERCLAIM
[11]
The respondent seeks the following relief in his
counterclaim application:
11.1
That 50% of the applicant’s pension interest held by Alexander
Forbes Pension Fund
be paid to the respondent;
11.2
That each party be liable for 50% of the debts incurred during the
subsistence of the marriage;
11.3
The main application to be dismissed as the applicant failed to
register the trust to the
benefit of the children and therefore the
application lacks merit;
11.4
Costs of this application be awarded to the applicant.
APPLICANT’S
CONDONATION APPLICATION
[12]
The applicant brought an application to this court
to make an order condoning the late filing of the application for the
variation
of the settlement agreement incorporated into the divorce
order granted by this court on 19 November 2018, which is almost six
(6) years ago.
[13]
In the applicant’s founding affidavit in
support of the condonation application, the applicant contended that
the delay was
extensive, however it was reasonable because of the
following:
13.1
The applicant averred that when the decree of divorce was a granted,
she was residing at
the matrimonial home with the respondent and
their two children. In terms of clause 1.2 of the settlement
agreement, she was awarded
permanent residence of the children, it is
submitted by the applicant that this meant she should stay at the
matrimonial home with
the children. However, it is alleged by the
applicant that she moved out of the matrimonial home because the
physical and emotional
abuse by the respondent became unbearable. The
applicant moved to her parent’s home with the two children in
June 2022.
13.2
After the decree of divorce was granted, a letter was sent to the
applicant on 11 June
2019, to vacate the matrimonial home and the
letter also brought clause 3.1 of the settlement agreement to the
attention of the
respondent in regard to its defects, in that, the
clause made no provision for the registration of the trust and the
appointment
of trustee(s).
13.3
The applicant submitted that she could not afford to engage lawyers
to deal with the matter
as she had no financial means due to being
under debt review resulting from debt incurred during the marriage
and due to the renovation
of the matrimonial home. Furthermore, the
applicant averred that she did not know what steps to take legally to
address the issue
of the immoveable property.
13.4
The applicant submitted that the respondent did not communicate with
her regarding the immoveable
property or his intention therein. The
applicant averred that the respondent is living comfortably in the
matrimonial home with
another woman unknown to the applicant, whilst
she and the children live in an RDP house where she shares a room
with her daughter.
13.5
During July 2022, the applicant submitted that she was employed at
another attorneys office
as a secretary. In October 2024, she
narrated her story of her divorce to her employer, her employer then
explored the possibility
of filing the current application to vary
clause 3.1 of the settlement agreement and to appoint a Liquidator
and Receiver to deal
with the remaining division of the joint estate.
13.6
On the 9 October 2024, a letter was sent to the respondent in which
he was informed that
the applicant intended to appoint a Liquidator
and Receiver to deal with the issue of the immoveable property.
13.7
The applicant submitted that her employer arranged counsel who agreed
to take the matter
on a
pro bono
basis and assist within the
current application.
[14]
In regard to the prospects of success of the main
application, the applicant submitted the following:
14.1
The respondent and the applicant were married in community of
property. The joint estate
has not been fully divided by the parties.
The respondent has taken full occupation of the matrimonial home to
the exclusion of
the applicant and has not made any effort to pay the
applicant what she is entitled to.
14.2
Clause 3.1 of the settlement agreement is defective. As set out in
the letter she sent
to the respondent, clause 3.1 of the settlement
agreement makes no provision for the names of the trustees and their
appointment.
Thus, this clause is unenforceable, and it is submitted
by the applicant that even if trustees were to be appointed, there
will
always be a dispute as to who occupies the property.
Accordingly, the applicant averred that clause 3.1 serves no purposes
in the
settlement agreement and should be varied and set aside.
14.3
The best way to resolve the dispute is for the property to be sold.
Thus, the applicant
submitted that the relief sought in the main
application is competent in law.
[15]
The applicant further contended that she would be
severely prejudiced if the condonation is not granted or the main
relief is not
granted because she was married to the respondent for
over 20 years in community of property. She contributed to the
renovation
of the immovable property, she currently stays in and RDP
house with her children, she shares a bedroom with her daughter, the
situation is untenable and undesirable as the respondent lives in
luxury in the matrimonial home. Furthermore, the applicant contended
that she would be prejudiced if the joint estate is not divided
equally as required by the law and in terms of the marital regime.
[16]
The applicant submitted that the respondent would
not suffer any prejudice as he is employed and would be able to find
alternative
accommodation and he would receive his half share of the
property once the property is sold. The applicant averred the
respondent
would not be rendered homeless.
[17]
The applicant contended that it would be in the
interest of justice that the joint estate be divided equally between
the parties
in terms of the applicable law. Furthermore, the
applicant contended that this case is of importance to her and her
children who
are not self-supportive (one child is still a minor) and
who do not live in a comfortable home.
[18]
The respondent has not opposed the applicant’s
condonation application.
RESPONDENT’S
CONDONATION APPLICATION
[19]
The respondent in his counterclaim founding
affidavit set out his grounds for an application for condonation.
[20]
The respondent submitted that he was not aware of
this right to claim from the pension fund of the applicant, it was
not until this
action when he was served this application and
approached his current legal representatives that he was advised that
he had a right
to claim.
[21]
The respondent further submitted that according to
clause 2.1 of the settlement agreement he was not legally represented
and relied
solely on the advice provided by the applicant’s
legal representatives who misled him, and they did not properly
explain
the contents and the meaning of clause 2.1. Clause 2.1 states
that “
the defendant [respondent in
this mater] irrevocably and unconditionally relinquishes his right to
claim any furniture acquired
before and during the marriage.”
The respondent submitted had he
understood the implication and or meaning of clause 2.1 he would not
have attached his signature,
however he trusted what was conveyed and
explained to him at the time.
[22]
It is submitted by the respondent that the
applicant will not be prejudiced by the variation and allowing the
respondent to receive
what is legally his as he is entitled thereto,
as the applicant herself has received her 50% portion of his pension
interest.
EVALUATION OF THE
CONDONATION APPLICATIONS
[23]
In
Grootboom
v National Prosecuting Authority
[1]
the
court held the following in regard to condonation applications:
“
It
is now trite that condonation cannot be had for the mere asking. A
party seeking condonation must make out a case entitling it
to the
court’s indulgence. It must show sufficient cause. This
requires a party to give a full explanation for the non-compliance
with the rules or court’s directions. Of great significance,
the explanation must be reasonable enough to excuse the default.”
[24]
Furthermore,
in
Melanie
v Santam Insurance CO Ltd
[2]
the
court stated:
“
In
deciding whether sufficient cause has been shown, the basic principle
is that the court has a discretion to be exercised judicially
upon a
consideration of all the facts and, in essence, is a matter of
fairness to both sides. Among the facts usually relevant
are the
degree of lateness, the explanation thereof, the prospect of success,
and the importance of the case. Ordinarily these
facts are
interrelated; they are not individually decisive, for that would be a
piecemeal approach incompatible with a true discretion…”
[25]
Having considered the applicant’s
application for condonation and the totality of evidence presented
before this court for
the late filling of the main application, while
the degree of lateness is extensive and substantial, this case is
important because
a variation of clause 3.1 of the settlement
agreement will impact on the best interests of the children born of
the marriage. It
is in the interest of justice that the condonation
application be held as it affects the best interest of the children
as the beneficiaries
of the trust which should have been registered
in terms of clause 3.1 of the settlement agreement.The respondent has
not opposed
the applicant’s condonation application, thus, I am
satisfied that there is no prejudice to the respondent that would
warrant
the refusal of the application.
[26]
Having considered the respondent’s
counterclaim condonation application and the totality of evidence
presented before this
court in this regard, the applicant has not
opposed the condonation application, while the delay is also
substantial, in the interest
of justice, I will not dismiss the
condonation application. Furthermore, I am satisfied that there is no
prejudice to the applicant
that would warrant the refusal of the
application.
[27]
I will now proceed to deal with the main claim and
thereafter the counterclaim.
MAIN CLAIM
[28]
It is submitted by the applicant that it is not
viable that a trust be established in terms of clause 3.1 of the
settlement agreement
because the respondent has taken full control of
the matrimonial home with another woman and he is residing in the
home to the
exclusion of the children. It is further submitted by the
applicant that by way of operation of law with a marriage in
community
of property, the parties share a joint estate. The
matrimonial home is an asset within that joint estate. The applicant
contended
that clause 3.1 is unenforceable because (as stated
earlier) even if trustees were appointed, there will always be a
dispute as
to who should occupy the matrimonial home, thus the clause
serves no purpose and should be varied and set aside. The applicant
submitted that the best way to resolve the dispute regarding the
occupancy of the matrimonial home would be for the immovable property
to be sold and the proceeds divided equally between the parties.
[29]
It is contended by the respondent that the general
rule for applications in terms of Rule 6(1) of the Uniform Court
Rules, is that
every application brought in terms of a notice of
motion must be supported by an affidavit as the facts upon which the
applicant
relies for relief.
[30]
The
respondent has directed the court to the case of
Quatermark
Investments (Pty) Ltd v Mkhwanazi and Another
[3]
where
it was held that:
“
[I]t
is trite that in motion proceedings affidavits fulfil the dual role
of pleadings and evidence. They serve to define not only
the issues
between the parties but also to place the essential evidence before
the court. They must therefore contain the factual
averments that are
sufficient to support the cause of action or defence sought to be
made out. Furthermore, an applicant must raise
the issues as well as
the evidence upon which it relies to discharge the
onus
of
proof resting on it, in the founding affidavit.”
[31]
It is submitted by the respondent that the
founding affidavit in motion proceedings must not lack averments that
are necessary to
assist the court to come to a just and fair
decision. It is submitted by the respondent that in the main
application, the applicant
in her notice of motion is asking the
court to make an order that clause 3.1 of the settlement agreement
signed by the applicant
and the respondent on 18 September 2018 and
made an order of court on the 19 November 2018 be varied and set
aside. However, it
is submitted by the respondent that the applicant
failed to state the necessary averments that warrants the variation
and setting
aside thereof. The applicant failed to disclose to this
court who was responsible for the registration of the trust and
further
that on what grounds should the order be set aside.
[32]
It is further submitted by the respondent that an
order that a Liquidator and Receiver be appointed to divide the
remaining assets
of the joint estate, including the matrimonial home
also lacks averments. It is submitted that the applicant failed to
list the
assets that forms part of the joint estate that was not
dealt with and or distributed by the divorce court when the divorce
matter
was finalised. In addition, the applicant failed to advance
substantial reasons that warrant the appointment of the Liquidator
and Receiver and state further which assets apart from the immoveable
property, will be subject to distribution.
[33]
The
respondent averred that in the
Quatermark
[4]
case
mentioned above, the court is clear that an applicant seeking an
order must raise the issues as well as the evidence upon which
it
relies to discharge the
onus
of
proof resting on it. In the founding affidavit, it is submitted that
the applicant failed to discharge the
onus
resting
upon her not only by not including the necessary averments to make
out a case but also failed to produce evidence that supports
her
claim, in that there is no inventory list of the assets belonging to
the joint estate which requires the appointment of a Liquidator
and
Receiver.
[34]
It is submitted by the respondent that the
applicant in her founding affidavit alleges that she was forced to
move out of the matrimonial
home due to the abuse of the respondent
however, the applicant failed to support this allegation by producing
documentary evidence
such as an application for a protection order
and or a case number from any police station to support the
allegations.
[35]
It is further submitted by the respondent, on the
issue of the applicant not having a place to reside with the two
children, she
made mention of two addresses in her founding
affidavit, which one of them is an RDP house and the other is an
ordinary house that
is capable to accommodate the applicant and the
two children. It is submitted by the respondent that in terms of the
eldest son
whom the applicant alleges is not self-supportive (the
son’s current income is insufficient to meet his needs) and
whom the
applicant supports; the applicant has not taken the court
into her confidence to fully disclose how she is helping with the
shortfall.
It is submitted by the respondent that the applicant wants
this court to take her word on all that is alleged and grant an order
which will ultimately affect the respondent and the two children, as
the children are the sole beneficiaries of the trust when
it is
eventually registered.
LEGAL FRAMEWORK: MAIN
APPLICATION
[36]
At the
outset is is important to note that there were a number of facts
disputed by the parties on affidavits. The
Plascon-Evans
Paints Ltd v Van Riebeck Paints (Pty) Ltd
[5]
sets
out the rule when dealing with such matters. This rule was succinctly
summarised in
M
M S v L E S
[6]
as
follows:
“
The
rule is that in proceedings where disputes of fact have arisen on
affidavits, a final order may be granted if the facts averred
in the
applicant’s affidavits, which have been admitted by the
respondent, together with the facts alleged by the respondent,
justify such an order. Simply put, the court will consider what facts
have been alleged by the respondent in his answering affidavit
against the version of the applicant which have been admitted by the
respondent.”
[37]
In
this matter I have been mindful of both the respondent and
applicant’s versions where there have been disputes of fact
taking into account the above
Plascon
Evans
[7]
rule.
[38]
Rule 42 of the Uniform Rules of Court deal with
the rescission or variation of court orders and provides,
inter
alia
as follows:
“
(1)
The court may, in addition to
any other powers it may have,
mero
motu
or
upon the application of any party affected, rescind or vary:
(a)
absence of any party affected thereby;
(b)
an order or judgment in which there is ambiguity, or patent error or
omission,
but only to the extent of such ambiguity, error or
omission;
(c)
an order or judgment granted as a result of a mistake common to the
parties.”
[39]
In
regard to the courts discretion in applying Rule 42 of the Uniform
Rules of Court, the Constitutional Court in
Zuma
v Secretary of the Judicial Commission of Inquiry into Allegations of
State Capture, Corruption and Fraud in the Public Sector
Including
Organs of State and Others,
[8]
held:
“
The
precise wording of Rule 42 postulates that a court “may”
not “must” rescind or vary its order -the rule
is merely
an empowering section and does not compel the court to set aside or
rescind anything. The discretion must be exercised
judicially.”
[40]
In
Maharaj
v Maharaj
[9]
the
court held that where parties do not comply with the terms of the
settlement agreement a liquidator may have to be appointed.
[41]
The
applicant directed the court to the case of
Gillingham
v Gillingham
[10]
where
court held the following:
“
The
law governing this matter seems to be perfectly clear. When two
persons are married in community of property a universal partnership
in all goods is established between them. When a court of competent
jurisdiction grants a decree of divorce that partnership ceases.
The
question then arises, who is to administer what was originally the
joint property, in respect of which both spouses continue
to have
rights? As a general rule there is no practical difficulty, because
the parties agree upon division of the estate, and
generally the
husband remains in possession pending such division. But where they
do not agree the duty devolves upon the court
to divide the estate,
and the Court has power to appoint some person to effect the division
on its behalf. Under the general powers
which the court has to
appoint curators it may nominate and empower someone..to collect,
realise, and divide the estate. And that
has been the practice in
South African courts is clear.”
[42]
The
judgment of
Maharaj
[11]
and
Gillingham
[12]
was
followed by this court in the matter of
E.M
v W.S.M
[13]
where
the court made an order for the appointment of a liquidator where the
parties who were married in community of property did
not comply with
the terms of the settlement agreement.
EVALUATION AND
DISCUSSION MAIN APPLICATION
[43]
In terms of the application of Rule 42(1)(a)
above, the court may vary an order granted in the absence of a party
affected thereby.
In the present matter this is not applicable as the
divorce order was not granted in the absence of a party affected.
[44]
In terms of Rule 42(1)(b) above, the settlement
order, which was incorporated into the divorce order, particularly
clause 3.1 sets
out very clearly that the matrimonial home be placed
in a trust for the benefit of the parties’ two children born of
the
marriage. In regard to a court having the judicial discretion to
vary an order where an order in which there is ambiguity, or patent
error or omission, but but vary only to the extent of such ambiguity,
error or omission. I am in agreement with the applicant that
the
defect in clause 3.1 is that it makes no provision for the
appointment of a trustee.
[45]
From the evidence the creation of the trust in
terms of clause 3.1 of the settlement agreement, was not made as a
result of a mistake
common to the parties as set out in Rule 42(1)(c)
of the Uniform Court Rules.
[46]
The overarching reason why the applicant wants
clause 3.1 to be varied, is that the applicant wants the matrimonial
home to be sold
instead of being placed in a trust for the benefit of
the children, because a dispute has arisen between the parties
as to
who should reside in the matrimonial home. The settlement
agreement is silent on who should reside in the matrimonial home. It
is submitted by the applicant that it is her understanding that in
terms of clause 1.2 of the settlement agreement where it states
“
it
would be in the best interest of the minor children if they resided
permanently with the plaintiff”
that
clause grants her the right to remain in the matrimonial home. In my
view, this clause of the settlement agreement
prima
facie
deals with the contact and care
arrangements of the children. On a
prima
facie
reading of clause 1.2, it is a
standard clause in divorce proceedings where it states that the minor
children’s primary residence
will be with the applicant
permanently. The applicant further averred that even if a trust is
created it will not solve the current
dispute that she and the
children should reside in the matrimonial home and the respondent
should vacate the home.
[47]
The respondent has submitted that he has paid the
outstanding balance of the bond of the house, which means the house
no longer
has a bond and is debt free. I am in agreement with the
respondent that should the trust be registered, the children would
never
be without a home in the future. It it would be in the best
interest of the children to create the trust as they would be
beneficiaries
of a home which is free of bond repayments; this is a
valuable asset for the children.
[48]
The dispute around who should occupy the marital
home, from the evidence appears to have arisen when the applicant
left the matrimonial
home in June 2022 to go live with her parents.
The applicant submitted that she lives in an RDP home with her
children. The occupancy
dispute between the parties from the evidence
appears to have arisen for the first time, almost three (3) years
after the divorce
order, which in my view the applicant now wants to
settle through a variation of the settlement agreement. I am further
of the
view that the applicant, presently as co-owner of the
matrimonial home should explore other legal avenues to deal with the
occupancy
dispute, including the issue of tenants residing in the
co-owned matrimonial home.
[49]
Should the matrimonial home be divided as sought
by the applicant, the home would be sold, and the proceeds would be
divided between
the parties. The children would have no right to
claim a share of the proceeds of the sale. While the applicant
submitted that
she wants the division because this would not only
benefit her, but also assist her in maintaining the children, both in
terms
of providing a better home for them and financially maintaining
them; in my view this is a short-sighted benefit for the children
in
the context of the trust benefit. I am of the opinion that the
creation of the trust in clause 3.1 in the settlement agreement
will
benefit the children long term, a bond free house is a huge asset in
the challenging socio-economic times we are living in.
[50]
It is clear from the evidence that applicant has
attempted to deal with the appointment of a trustee when she sent a
letter to the
applicant regarding the appointment of trustee(s). The
respondent alleges that the applicant undertook verbally to register
the
trust as she was working at a law firm at the time of the
divorce. To date the trust has not been registered and no trustee has
been appointed.
[51]
Drawing
from the judgments in
Maharaj,
[14]
Gillingham,
[15]
and
E.M
[16]
in the
circumstances, it is appropriate that a trustee be appointed to give
effect to clause 3.1 in the settlement agreement, as
such in my view
would be in the best interest of the children. In the circumstance, I
am of the opinion that this court should
intervene and order the
appointment of a trustee. I am in agreement with the submission of
the respondent that the trust should
be registered within three
months of a court order.
[52]
In regard to the appointment of a Liquidator and
Receiver to divide up the remaining assets of the joint estate, I am
in agreement
with the submissions made by the respondent that the
applicant has not placed any evidence before the court to support her
claim;
there is no inventory list or description of the remaining
assets, apart from the matrimonial home which need to be divided.
Clause
2.1 of the parties’ settlement agreement headed
“immovable property” states, “
the
defendant irrevocably and unconditionally relinquishes his right to
claim any furniture before and during the marriage.”
The
applicant has not averred that there has been non-compliance with
clause 2.1 of the settlement agreement. In the circumstances,
I am
the view that this court should not intervene and accordingly not
grant the relief sought by the applicant.
COUNTERCLAIM
APPLICATION
[53]
The respondent in his counter application seeks a
variation/amendment of the settlement agreement to include the
following prayers:
53.1
that the 50% share of the applicant’s pension interest at
Alexander Forbes Pension
Fund be paid to the respondent as at the
date of divorce and their records be accordingly endorsed for the
court to give effect
to the defined rights of the parties in terms of
section 7(8)
of the
Divorce Act 70 of 1979
.
53.2
that each party is liable for 50% of the liabilities/debts incurred
during the subsistence
of the marriage.
[54]
It is submitted by the respondent that the marital
relationship between himself and the applicant irretrievably broke
down, in an
around 2014. Before that for all intents and purposes the
parties had a happy marriage. The respondent alleges that the
applicant
started mistreating him and abused him emotionally and
stopped caring for him, as well as denied him conjugal rights.
[55]
The applicant consulted her attorneys and
proceeded to issue summons against the respondent. The applicant was
legally represented,
while the respondent could not afford legal
representation, subsequent to legal aid rejecting his application.
The respondent submitted
that the divorce was opposed, but the
parties then entered into a settlement agreement which was
incorporated into the decree of
divorce granted by the court.
[56]
It is submitted by the applicant that it was his
understanding, based on advice he received from colleagues and
internet research
that upon the granting of a divorce, the applicant
and he would each be entitled and share 50%, half share of their
joint estate,
including the pension fund and/or interests.
[57]
The respondent further submitted that on 19
November 2019, when the divorce matter was heard in court, the
applicant’s attorneys
omitted to include the 50% pension
interest claim of the respondent against the applicant’s
pension fund.
[58]
The respondent averred that as a lay person he was
not legally represented, and he relied on the legal advice provided
by the applicant’s
attorney at the time of the divorce. The
respondent alleges that the applicant’s attorneys failed to
advise him accordingly,
that he was entitled to claim 50% share of
the applicant’s pension interest at Alexander Forbes. The
respondent further submitted
that the applicant’s attorneys
deceived, manipulated and misled him into believing that the
settlement agreement did include
the 50% share of the applicant’s
pension interest held at Alexander Forbes. Whilst, at the same time
the respondent submitted
that he was not aware of the fact that he
was entitled to the 50% share of the applicant’s pension
interest. The respondent
is requesting this court to give effect to
his rights as envisaged in terms of
section 7(8)
of the
Divorce Act
70 of 1979
[Divorce Act].
[59]
It is also the submission by the respondent in his
counterclaim application that he did not at anytime relinquish,
forfeit and/
or abandon his right to claim his share of the pension
interest held by the applicant’s pension fund.
[60]
The applicant’s response in her replying
affidavit to the respondent’s counterclaim regarding the claim
for 50% of her
pension interest is as follows:
“
The
applicant can read and write. He opted not to oppose the divorce
proceedings. No claim was made against my provident fund. It
was the
applicant’s choice not to do so. In any event, all monies
received were used to pay for the debts created by the
applicant”.
[61]
Furthermore, at the hearing of the matter, counsel
on behalf of the applicant submitted that the applicant has no
pension interest
held by Alexander Forbes.
LEGAL FRAMEWORK:
COUNTERCLAIM APPLICATION
[62]
In
C.N.N
v N.N
[17]
the
court stated:
“
The
parties engaged in divorce proceedings are within their rights to
negotiate the terms of their divorce and agree on the various
aspects
including the division of one or both parties’ pension
interests. By voluntarily placing their signatures on their
negotiated settlement agreements in the presence of their witnesses,
parties expressly declare that they are satisfied with the
contents
of their settlement agreement and will be bound by the terms
expressed thereto.”
[18]
[63]
Section 1
of the
Divorce Act 70 of 1979
[Divorce
Act] defines a pension interest in regard to a pension fund where a
party seeks a divorce who is a member of a pension
fund (excluding a
retirement annuity funds) as:
“
[T]he
benefits to which that party as such a member would have been
entitled in terms of the rules of that fund if his membership
of the
fund would have terminated on the date of the divorce on account of
his resignation from his office.”
[64]
The
court in
C.N.N
v N.N
[19]
succinctly
summarises the practical role played by
section 7(8)
of the
Divorce
Act in
respect of pension interest as follows:
“
First
it provides the divorce court with a discretion to make an order that
a portion of the member spouse’s pension interest
is due to the
non-member spouse. Secondly, it empowers the court to make an order
against the identified retirement fund which
may or may not have been
joined in the divorce proceedings as a party to pay the prescribed
portion of the member spouse’s
pension interest to the
non-member spouse when the benefits accrue to the member spouse.
Thirdly, it authorises the court to direct
the registrar of the court
to notify the identified fund of the order for such fund to endorse
its records in respect of its member
that a proration of that members
benefits will be paid to the non-member spouse. Fourthly, it creates
an obligation on the administrator
of the identified fund, once an
endorsement in the records of the fund has been made, to provide
proof of such endorsement to the
court in writing.”
EVALUATION AND
DISCUSSION: COUNTERCLAIM APPLICATION
[65]
Having regard to the evidence before this court,
at the time of the divorce, the respondent was not legally
represented, and it
appears that the settlement agreement was reached
by the parties through the negotiations of the applicant’s
legal representatives.
It is not disputed by the applicant that her
legal representatives led the negotiations and that the respondent
was reliant on
the advice of her legal representatives.
[66]
The general tenet of this case in respect to the
negotiations around the pension interest is not clear from either of
the parties.
The applicant in her replying affidavit simply states
that the applicant did not make a claim against her provident fund
and he
chose not to do so. She does not mention what role if any her
legal representatives played in negotiating the settlement agreement
in this regard. The respondent on the other hand alleges that he was
misled, deceived and manipulated by the applicant’s
legal
representatives, however, there are no details or evidence in the
form of correspondence, conversations or any other proof
how this was
done by the applicant’s legal representatives; firstly, that
the respondent did not know he was entitled to
the 50% pension
interest share and secondly, how he was misled to believe that the
50% share was then included in the settlement
agreement.
[67]
In the
case of
Kotze
v Kotze
[20]
the
court held that where parties who were married in community of
property did not deal with pension interests in divorce proceedings
by way of a settlement agreement or by a forfeiture, both spouses
remained entitled to share in the member spouse’s pension
interest, which must be determined at the date of divorce. The fact
that the estate had already been divided, should not affect
that
entitlement. In the present case, there is no evidence before this
court that supports the contention that the respondent
received
proper legal advice. The applicant is a layperson with his highest
qualification at grade 12, in the premises and in the
interest of
justice, I will proceed to address the relief sought by the
applicant.
[68]
In regard to the pension interest claim, on the
day of the hearing, the applicant’s counsel averred that the
applicant had
no pension fund at the time of the divorce.
Furthermore, it was submitted in the applicant’s heads of
arguments that the
applicant has no pension interest held by
Alexander Forbes.
[69]
The respondent’s counsel directed the court,
to Annexure “BB2” in the applicant’s founding
affidavit which
is the applicant’s contract of employment. The
contract set out that the letter of appointment of the applicant
dated 29
November 2005, was revoked by the contract of employment
dated 1 January 2021. It was submitted by the applicant that due to
restructuring
at work her salary decreased with the new contract of
employment. However, the contract included the benefits of the
applicant
which included provident fund contributions. The applicant
also included her salary slips which also referenced provident fund
deductions.
[70]
Having regard to the evidence and having heard
counsel, at the time of the divorce I am satisfied that the applicant
did have a
provident fund, as evidence above and as evidenced by the
applicant herself when she stated in her founding affidavit that the
respondent made no claim against her provident fund.
[71]
What has not been placed before this court is the
evidence that the applicant’s provident fund was held by
Alexander Forbes.
[72]
The applicant in her founding affidavit submitted
that she recently secured employment with a law firm in Pretoria.
This means she
has resigned from her previous position where her
pension interest was held; she is no longer a provident fund member
belonging
to a provident fund as a result of the employment with her
erstwhile employer.
[73]
A pension interest as defined in
section 1
of the
Divorce Act, is
the resignation benefit that would be payable in
terms of the rules of the fund if you resigned on the date of
divorce. The conundrum
with the present case, is that at the time of
the divorce the applicant was a member of a provident fund, but at
date of this hearing
the applicant has since resigned from her
previous employer, thus the pension interest at the time of this
hearing no longer exists.
[74]
Having regard to the evidence presented to this
court, it appears that the provident fund money accruing to the
applicant has been
paid out; the applicant states in her replying
affidavit, that the respondent made no claim against her provident
fund and in any
event that she has used all monies received to pay
for the debts created by the respondent. The respondent on the other
hand in
his responding answering affidavit, alleges that the
applicant utilised her provident fund from her previous employer to
purchase
immovable property. Thus, there is a common understanding
between the parties that the applicant’s provident fund from
her
employer at the time of the divorce has accrued and has been paid
out.
[75]
The relief sought by the respondent is to vary the
settlement agreement to allow for the claim of the 50% share of the
pension interest
of the applicant’s Alexander Forbes Fund,
which was held by the applicant at the time of the divorce. In the
circumstances,
the relief sought cannot be granted by this court
because the order would be unenforceable as the applicant must be an
active member
of the fund (whether it is Alexander Forbes or not) in
order for the fund to pay the respondent.
[76]
In
Eskom
Pension and Provident Fund v Krugel and Another
[21]
the
court held:
“
[O]nce
the pension benefit has accrued ie beyond the date of divorce at
which time the pension interest converts into a pension
benefit, the
provision of
ss7(7)
and
7
(8) are no longer applicable.”
[77]
Thus, in the present matter
section 7(8)
of the
Divorce Act is
no longer applicable. In other words, if the
settlement agreement is varied according to the relief sought by the
applicant, the
order, would direct the fund and not the member
(applicant), to pay 50% of the pension interest to the former spouse
(respondent).
Therefore, the variation of the settlement agreement
and the resultant order would be unenforceable as the pension
interest has
accrued and has been paid out at the time of the
applicant’s resignation.
[78]
In the
case of
Eke
v Parsons
[22]
it was
held by the Constitutional Court that:
“
If
an order is ambiguous, unenforceable, ineffective, inappropriate, or
lacks the element of bringing finality to a matter or at
least part
of the case, it cannot be said that the court that granted it
exercised its discretion properly. It is a fundamental
principle of
our law that a court order must be effective and enforceable, and it
must be formulated in language that leaves no
doubt as to what the
order requires to be done.”
[79]
When a
pension interest accrues it becomes a pension benefit.
[23]
At most in the case of a pension benefit the accrued right would form
part of the joint estate.
[24]
Thus, the first relief sought by the respondent in his counterclaim
application falls to be dismissed.
[80]
The second relief sought by the respondent in his
counterclaim application is that each party is liable 50% of the
liabilities/debts
incurred during the subsistence of the marriage.
[81]
In
J.A.N
v N.C.N
[25]
the
court held:
“
[T]he
effect of a ‘settlement order’ or ‘consent order’
is to change the status of the rights and obligations
between the
parties. ‘Save for litigation that may be consequent upon the
nature of the particular order, the order brings
finality to the
lis
between
the parties: the
lis
becomes
res
judicata
(literally,
“a matter judged”). [The principle is that generally
parties may not again litigate on the same matter once
it has been
determined on the merits]. It changes the terms of a settlement
agreement to an enforceable court order.”
[82]
In the present matter, the parties in their
affidavits have made reference to paying off each others debts
incurred during the marriage
after the granting of the divorce order,
thus, it is not for this court six (6) years later after the divorce
order to deal with
the merits of parties’ debt disputes,
particularly when the matter around the debt payment was dealt
with in the settlement
agreement. Clause 5 of the settlement
agreement is headed “debts” and states that “
each
party undertakes responsibility for payment of debts incurred in his
or her own name.”
There is no
ambiguity in the phrasing of this clause and having regard to the
evidence before this court there are no grounds upon
which to seek
the variation of this clause on the facts, in the circumstances the
relief sought by the respondent in this regard
is not granted as the
respondent has provided no cogent reasons to support his claim for
the variation of the debt agreement in
the settlement agreement.
CONCLUSION
[83]
Having regard to the terms of the settlement
agreement and the evidence placed before this court, there exists in
my view, on an
application of the law referred to in this judgment,
no reason why the court cannot intervene and direct the appointment
of a trustee
to give effect to clause 3.1 of the settlement agreement
as it would be in the interest of justice to protect the best
interests
of the two children born of the marriage who are the
beneficiaries of the trust, whilst the applicant’s application
and the
respondent’s counterclaim application falls to be
dismissed.
[84]
Finally, as to costs in general, the principle is
that costs follow the results of the proceedings. Thus, I can see no
reason why
there should be a deviation from the general rule that the
successful party should be awarded her/his costs.
ORDER
[85]
Having heard counsel for both parties and
considered the evidence before this court, in the circumstances, I
hereby make the following
order:
85.1
The applicant’s condonation application is granted.
85.2
The respondent’s condonation request is granted.
85.3
The applicant’s application for the variation of clause 3.1 of
the divorce settlement agreement incorporated
into the divorce order
dated 19 November 2018 is dismissed with costs.
85.4
The applicant’s application for the appointment of a Liquidator
and Receiver to divide the remaining
assets of the joint estate,
including the matrimonial home is dismissed with costs.
85.5
The respondent’s counterclaim application is dismissed with
costs.
85.6 To
give effect to clause 3.1 of the settlement agreement as incorporated
into the divorce order dated 19
November 2018, the attorneys of the
respondent, is hereby ordered to register the trust and appoint an
independent trustee to administer
the trust within three (3) months
of this order.
W DOMINGO
ACTING JUDGE OF THE
HIGH COURT
PRETORIA
Delivered: This judgment
was delivered and prepared by the Judge whose name is reflected and
is handed down electronically by circulation
to the parties’
legal representatives by email and by uploading it to the electronic
file of the this matter on CaseLines.
This matter was heard in open
court on 4 March 2025. The date for hand down is deemed to be 4 June
2025.
APPEARANCES
For the
Applicant: ADVOCATE F
BALOYI instructed by MAGAGANE ATTORNEYS INC
For the
Respondent: ADVOCATE
HM MAHLANGU instructed by LS MAHLANGU ATTORNEY
[1]
2014
(2) SA 68
(CC) at para 23.
[2]
1962
(4) SA 531
(A) at paras C-F.
[3]
2014
(3) SA 96
(SCA) at para 13.
[4]
Supra.
[5]
[1984] ZASCA 51
;
1984
(3) SA 623
(A).
[6]
5910/2019
(19 December 2024) at para 77.
[7]
Supra
note
5.
[8]
2021
ZACC 28
at para 15.
[9]
2002
(2) SA 648
(D) at 652 C.
[10]
1904
TS 609.
[11]
Supra
note
9.
[12]
Supra
note
10.
[13]
51743/16
(25 January 2018).
[14]
Supra
note
11 above
[15]
Supra
note
12 above.
[16]
Supra
note
13 above.
[17]
[2023]
ZAGPJHC 208;
2023 (5) SA 199
(GP) at para 11.
[18]
See
also
PL
v YL
2012
(6) SA 29
(ECP) at para 6.
[19]
Supra
note
17.
[20]
(2013)
JOL 30037 (WCC).
[21]
2012
(6) SA 143
(SCA) (31 May 2011).
[22]
[2015]
ZACC 30
at para 74.
[23]
Elesang
v PPC Lime Limited and Others
2007
(6) SA 328
(NC) at para 20.
[24]
Supra.
Also
see
De
Kock v Jacobson and Another
1999
(4) SA 346
(W) at 349H;
Sempapalele
v Sempapalele and Another
2001
(2) SA 306
(O
)
at
311C and
Maharaj
supra
note
9 at 650-651.
[25]
(2283/2021)
[2022] ZAECMKHC 14 (17 May 2022) at para 24.
sino noindex
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