Case Law[2022] ZAGPPHC 311South Africa
K.R.G v Minister of Home Affairs and Others (40023/21) [2022] ZAGPPHC 311; [2022] 3 All SA 58 (GP); 2022 (5) SA 478 (GP) (11 May 2022)
High Court of South Africa (Gauteng Division, Pretoria)
11 May 2022
Headnotes
the question is not whether there absolutely is a choice, but whether, realistically, in the particular circumstances, a choice may be exercised. The question as to whether choice can realistically be exercised is to be differentiated from the question as to a party's capacity to contract.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## K.R.G v Minister of Home Affairs and Others (40023/21) [2022] ZAGPPHC 311; [2022] 3 All SA 58 (GP); 2022 (5) SA 478 (GP) (11 May 2022)
K.R.G v Minister of Home Affairs and Others (40023/21) [2022] ZAGPPHC 311; [2022] 3 All SA 58 (GP); 2022 (5) SA 478 (GP) (11 May 2022)
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sino date 11 May 2022
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 40023/21
REPORTABLE:
YES
OF
INTEREST TO OTHER JUDGES: NO
REVISED:
NO
Date:
11 May 2022
In
the matter between:
G[....],
K[....]
R[....]
APPLICANT
and
MINISTER
OF HOME AFFAIRS
FIRST RESPONDENT
MINISTER
OF JUSTICE AND
CONSTITUTIONAL
DEVELOPMENT
SECOND RESPONDENT
G[....],
B[....]
P[....]
THIRD RESPONDENT
and
PRETORIA
ATTORNEYS ASSOCIATION
AMICUS CURIAE
JUDGMENT
Van
der Schyff J
# Introduction
Introduction
[1]
Section 7(3) of
the Divorce Act 70 of 1979 ("the
Divorce Act"
;) provides the
court granting a decree of divorce in respect of a marriage out of
community of property concluded before 1 November
1984, with a
discretion to make a redistribution order to the effect that any
asset, or sum of money, may be transferred from one
spouse to
another, subject to the provisions of
s 7(4)
, (5) and (6). This
application concerns the constitutional validity of
s 7(3)(a)
and the
restriction of the remedy provided for in
s 7(3)
to marriages out of
community of property that were entered into before 1 November 1984
in terms of an antenuptial contract by
which community of property,
community of profit and loss and accrual sharing in any form are
excluded.
[1]
As the law
currently stands, the court has no power to exercise the discretion
provided in
s 7(3)
, where marriages were concluded out of community
of property with the exclusion of the accrual system after 1 November
1984.
[2]
The applicant, Mrs. G[....], and her husband were married out of
community
of property, excluding the accrual system, in March 1988.
Mrs. G[....] submits that unless this application is successful,
neither
she nor other spouses in a similar position are entitled to
apply for a redistribution order on divorce, irrespective of their
particular circumstances and no matter how stark the injustices they
face are. She accordingly seeks an order declaring
s 7(3)(a)
of the
Divorce Act unconstitutional
and invalid to the extent that it limits
the operation of
s 7(3)
to marriages out of community of property by
which community of property, and community of profit and loss and
accrual sharing
are excluded that were '
entered into before the
commencement of the
Matrimonial Property Act, 1984
'
.
[3]
The court is not called upon to determine whether Mrs. G[....] should
be granted a redistribution order in her particular divorce but to
decide whether it is constitutional for spouses married out of
community of property with the exclusion of the accrual system after
1 November 1984 to be deprived of the relief provided for
in
s 7(3)
of the
Divorce Act.
Structure
of the judgment
[4]
The application is not opposed. The second respondent, the Minister
of
Justice and Constitutional Development ("the Minister"),
initially filed a notice to oppose the application, but later
indicated that it abides the court's decision. The Minister
subsequently filed an affidavit setting out its stance regarding the
issue at hand. The first and third respondents abide the court's
decision. Shortly before the hearing, the Pretoria Attorney's
Association ("the PAA") applied to be admitted as
amicus
curiae.
Based on the preliminary submissions made, and because of
the lack of opposition, I was of the view that the PAA's contribution
would be invaluable. The PAA was admitted as
amicus curiae.
[5]
In this judgment, I set out the parties' and the
amicus'
s
respective contentions before engaging with the legal issues raised.
The submissions collectively establish the context within
which the
constitutional validity of
s 7(3)(a)
of the
Divorce Act is
to be
determined. I am indebted to all counsel concerned for the thorough
exposition of applicable legal principles and law. I
must extend my
appreciation to the academic scholars whose works are referred to in
this judgment. A constitutional challenge,
long foreseen by academic
scholars, was raised only in 2021.
The
applicant's case
i.
Arbitrary
and irrational differentiation infringes s 9(1) of the
Constitution
[2]
[6]
The applicant, Mrs. G[....], submits that s 7(3)(a) arbitrarily and
irrationally
differentiates between people married before and after 1
November 1984, being the date on which the Matrimonial Property Act
88
of 1984 ("the MPA") commenced. Counsel for the applicant
contends that it is irrational that the applicant:
'would be protected by section 7(3) if
she had married four years earlier. This is particularly so when the
law still enforced a
man's headship of the family until 1993, long
after the blanket, guillotine deadline of 1984.'
[7]
Expert reports, confirmed under oath by two expert witnesses, were
submitted
in support of Mrs. G[....]’s case. The Ancer report
was compiled by a clinical psychologist, Ms. Judith Ancer. Ms. Ancer
explains:
'Before the
Matrimonial Property Act
came
into effect, the law entrenched a patriarchal system in which a
man was legally entitled to control his wife and where women had
a
weak bargaining position. On the assumption that the husband's
headship of the family was only removed in 1993 it means that
the
patriarchal system persisted for 9 years after the
Matrimonial
Property Act came
into force, but a woman lost the ability to make an
application under
section 7(3)
of the
Divorce Act when
the accrual
system was introduced.'
[8]
According to Ms. Ancer, there is a lag in time between something
becoming
law on paper, and the entrenched systems of romantic and
marital relationships adjusting to a new legal position.
[9]
Mrs. G[....] contends that no legitimate government purpose justifies
the differentiation that denies persons married out of community of
property with the exclusion of the accrual system after 1 November
1984 of the potential protection of a just and equitable remedial
judicial order. Counsel for the applicant addressed the assumption
that the purpose of limiting the benefit of
s 7(3)(a)
of the
Divorce
Act to
marriages concluded before 1 November 1984, was to give effect
to the choice of the parties to get married out of community of
property without the accrual system, and that
s 7(3)(a)
holds them to
that choice. He submitted that the choice-argument is illusionary for
the following reasons:
i.
Experts whose reports were submitted into evidence hold that
it does not necessarily mean that if a person is over 18-years old
and legally able to get married, the person is mature and competent
enough to consider the consequences of an antenuptial contract
logically. It is necessary to mention at this point that in light of
the entrenched position regarding a party's legal capacity
to enter
into a contract in South African Law, and the ensuing legal
consequences when a contract is entered by a person who lacks
the
capacity to contract, I am of the view that this aspect is not
relevant to the issue regarding the constitutional validity
of
s
7(3)(a)
of the
Divorce Act. A
party who concluded an antenuptial
agreement while lacking the required legal capacity to contract has
appropriate remedies to
pursue. The same can be said in relation to
antenuptial agreements entered into because of coercion,
justus
error,
and fraud – appropriate legal remedies exist in this
regard.
ii.
The
Constitutional Court recently rejected the choice argument in the
context of life partnerships in
Bwanya
v Master of the High Court, Cape Town
.
[3]
The Constitutional
Court held that the question is not whether there absolutely is a
choice, but whether, realistically, in the
particular circumstances,
a choice may be exercised. The question as to whether choice can
realistically be exercised is to be
differentiated from the question
as to a party's capacity to contract.
iii.
It is already accepted in our legislative scheme that courts
can interfere with the choices expressed by spouses in their
antenuptial
contracts,
section 7(3)(a)
is a prime example. Other
statutory provisions similarly empower a court to alter arrangements
that parties to a marriage have
made to avoid unfairness.
Section 9
of the
Divorce Act empowers
a court to make an order that the
patrimonial benefits of the marriage be forfeited by one party in
favour of another, having regard
to the duration of the marriage, the
circumstances that gave rise to the break-down of the marriage and
any substantial misconduct
on the part of either of the parties.
Section 8(2)
of the MPA empowers a court to replace the accrual
system applicable to the marriage with a matrimonial property system
in terms
of which accrual sharing, as well as community of property
and community of profit and loss, are excluded.
Sections 9
and
10
of
the MPA respectively empower a court to declare the right to share in
the accrual forfeit or to order that satisfaction of an
accrual claim
be deferred on conditions that the court deems just.
Section 16
of
the MPA empowers a court to step in where a party married in
community of property withholds his or her consent required in
terms
of ss 15 and 17 of the Act. The judicial discretion granted in the
abovementioned instances allows courts to deviate from
the strict
application of the property regime chosen by the parties concerned in
circumstances where it would be inequitable to
hold the parties to
their original antenuptial contract.
[10]
Counsel submits that it is irrational that s 7(3)(a) permits courts
to interfere in cases
where the parties contracted out of the default
rule of community of property, but withholds it from cases involving
parties who
also contracted out of the second default rule of
accrual.
ii.
Violation of s 9(3) of the Constitution
[4]
[11]
Mrs. G[....] further contends that the cut-off date in s 7(3)(a)
disproportionately impacts
women. The blanket deprivation of
excluding spouses from the potential benefits of a just and equitable
redistribution order constitutes
unfair discrimination based on sex,
gender, marital status, culture, race, and religion. As a result, it
operates to trap predominantly
women in harmful, and toxic
relationships when they lack the financial means to survive outside
of the marriage.
[12]
Counsel submits
that in considering this aspect, the court should adopt a generous
approach to interpreting the scope of the constitutional
right
protected by s 9(3). Relying on
City
Council of Pretoria v Walker,
[5]
counsel stressed
that the court must recognise that conduct that appears to be neutral
and non-discriminatory may result in discrimination.
In anticipation
of an argument that the exclusionary scope of s 7(3)(a) is
gender-neutral, counsel submitted that such an argument
relies on the
premise that husbands and wives are similarly affected by the lack of
a discretion where marriages out of community
of property without the
accrual are concluded after 1 November 1984. This premise, in turn,
relies on the assumption that husbands
and wives in heterosexual
relationships are in the same financial positions at the time of the
marriage; that heterosexual relationships
have the same financial
consequences for men and women, and that men and women who are
parties to a heterosexual marriage are therefore
similarly situated
when marriages end. Expert evidence in the joint report by Professor
Elsje Bonthuys and Dr. Anzille Coetzee
("the Bonthuys &
Coetzee report") demonstrates that these assumptions are flawed.
[13]
The Bonthuys & Coetzee report sketches the context of gender
inequality in South Africa.
Bonthuys and Coetzee opine that even
today, twenty-five years after the transition to democracy, the
intersecting inequalities
of gender, race, and class still render
many women unable to access and realise their rights. They refer to a
2016 study wherein
it was found that South African women and
women-headed households are significantly more likely to be
'multidimensionally poor'
than males or male-headed households. Black
women remain the poorest group in South Africa. As a result of their
disproportionate
poverty, women depend economically on male family
members, husbands, and intimate partners for their survival and that
of their
children. The cumulative effect of a number of inequalities,
e.g., gender income gap, unequal access to land and education, and
women being disproportionately situated outside the formal economy,
is that women often enter into marriage on a weaker footing
than men,
with high levels of economic precarity and financial dependence. They
contend that:
'The decision to get married is there
for one that many women make with less autonomy than men, and with
less agency to insist on
terms that would be advantageous to them.'
In
addition, cultural understanding and practices associated with
heterosexual marriages often exploit and deepen these inequalities
by
supporting an unequal division of care and household labour between
men and women in families. South African cultures share
the
assumption that women are responsible for or naturally predisposed
towards child-rearing and household work. This often confines
women
in heterosexual relationships at home, where they perform unpaid care
and household labour, while at the same time freeing
up their
husbands to develop professionally and increase their wealth. This
affects women's ability to participate in paid labour
on an equal
footing with men in several respects. Bonthuys and Coetzee express
the view that given that women's ability to generate
an income is
reduced by marriage, as statistically proven, and that women bear
more responsibility for housework and caring labour,
a marriage out
of community of property with the exclusion of the accrual system
would generally favour men. The effects of gender
equality are
exacerbated by high levels of physical, sexual, and other forms of
violence which characterise intimate relationships.
When courts do
not have the discretion to affect adjustments to a matrimonial
property regime when it is just and equitable to
do so, it is
typically the women who are unfairly disadvantaged.
[14]
Bonthuys and
Coetzee opine that s 7(3) simultaneously discriminate on several
grounds and affect different groups of people differently.
They refer
to the Constitutional Court's decision in
Gumede
v President of the Republic of South Africa,
[6]
where the court
held that customary marriages concluded before the
Recognition
of Customary Marriages Act
120
of 1998
,
came
into operation would effectively be marriages in community of
property. They contend that the court effectively created a judicial
discretion in all customary divorces and state that:
'[E]very divorce court granting a
divorce decree relating to a customary marriage has the power to
order how the assets of the customary
marriage should be divided
between the parties, regard being had to what is just and equitable
in relation to the facts of each
particular case. This would require
that a court should carefully examine all the circumstances relevant
to the customary marriage
and in particular the manner in which the
property of the marriage has been acquired, controlled and used by
the parties concerned,
in order to determine, in the final instance,
what would be a just and equitable order on the proprietary
consequences of the divorce.'
In
the experts' view, the judicial discretion created in
Gumede
is
broader than the discretion created in
s 7(3)(a)
and does not limit
the discretion to marriages concluded before or after a specific
date.
[15]
Mrs. G[....]'s counsel submits that the time-bar, or cut-off date, in
s 7(3)(a)
constitutes a blanket bar that permits no exception. The
subsequent limitations of rights are extensive. If the time-bar is
removed,
the discretion built into
s 7(3)(a)
will provide a less
restrictive means of achieving the purpose of the statute while
allowing the court to craft a just and equitable
remedy in deserving
cases.
[16]
Mrs. G[....]
contends that the limited and exclusionary application of
s 7(3)(a)
of the
Divorce Act constitutes
unfair discrimination as prohibited by
s 9(3) of the Constitution and a limitation of the right to equality.
He submits that once
a limitation of any right in the Constitution is
shown to exist, the onus shifts to the state respondents to justify
the limitation.
[7]
In this matter,
neither of the respondents opposes the relief sought. The Minister
and the applicant part ways as far as the remedy
is concerned, but
the deponent to the Minister's affidavit referred to the
'overwhelming need to amend
section 7(3)
of the
Divorce Act'.
The
Minister's submissions
[17]
Although the Minister initially filed a notice of intention to oppose
the application,
he had a change of heart and abides the court's
decision. The Minister indicates that the reason underlying the
decision to file
an answering affidavit is to supplement the
arguments raised by Mrs. G[....] in her founding affidavit and assist
the court in
establishing the views of the Department on the relief
sought by Mrs. G[....] and the proposed remedy.
[18]
The Minister
explains that the relief sought by Mrs. G[....] has been the subject
of consideration by the South African Law Research
Commission ("the
SALRC").
[8]
As a result it
formed part of matters that the Minister approved for an
investigation which could lead to a possible legislative
amendment.
The SALRC is still investigating and could not yet finalise an
opinion.
[19]
Based on the comments received subsequent to the publication of Issue
Paper 34, the
Minister states that parties opposing the extension of
the judicial discretion contained in
s 7(3)(a)
past the time-bar of 1
November 1984, do so on the following grounds:
i.
It does not respect parties' freedom to contract;
ii.
Normal contractual remedies apply to antenuptial contracts
entered into under coercion,
justus error
or fraud;
iii.
There would be little chance of ignorance between contracting
parties as the notary would have explained alternatives to the
parties,
and even if the notary failed to do so, "it has never
been the object of the law to protect the foolish';
iv.
A marital property system excluding any sharing is chosen
deliberately, for clear and well-considered reasons, and such
decisions
should be respected;
v.
The judicial discretion applicable to marriages out of
community of property pre- the commencement of the MPA is a temporary
emergency
measure, applicable to those who, for whatever reason, did
not opt for the conversion possibilities under
s 21
of the
Divorce
Act;
vi
.
The extension of the judicial discretion would encourage
litigation, increase costs and extend the time of litigation;
vii.
The extension of the judicial discretion would encourage
cohabitation;
viii.
Judicial discretion creates uncertainty;
ix.
The extension of the judicial discretion would ignore the
interests of creditors.
[20]
The Minister points out that parties in favour of extending the
judicial discretion to
marriages out of community of property with
the exclusion of the accrual system post the commencement date of the
MPA, advanced
the following arguments:
i.
Women cannot be allowed to contract themselves and their
children into poverty;
ii.
Women entering into an antenuptial contract with an express
exclusion of the accrual system are seldom making an "informed
choice";
iii.
There is a power imbalance between the parties;
iv.
Our law recognises the imbalance between other contracting
parties, such as employer and employee and has legislated to protect
the weaker party.
Amicus
curiae
's submissions
[21]
The PAA sought to be admitted as
amicus curiae
because-
'The PAA is concerned that the court
may be faced with an issue that not only involves weighing up
potential competing fundamental
rights (equality, dignity and freedom
of belief and opinion) within the context of s 36 of the
Constitution, but also has the potential
to not only affect the
rights of prospective and divorcing spouses but also third parties
and creditors.'
[22]
The
amicus
is concerned that the court is requested to
consider a complex and multi- layered legal aspect without the
benefit and availability
of statistics and broad-based or other
empirical research such as research by the SALRC. The
amicus
recognises the invaluable contribution of the academic input
provided by the applicant's expert witnesses but endeavours to
provide
a 'practical perspective and approach from practitioners who
deal with the pre-and post-divorce financial consequences as part of
their practices on a grassroots level.'
[23]
The
amicus
sheds light on the history of the debate regarding
the extension of the redistribution discretion of s 7(3). The
amicus
highlights that the South African Law Commission ("the
SALC") published
Project 12: Review of the Law of Divorce:
Amendment of
Section 7(3)
of the
Divorce Act, 1979
Report
("Project
12") in July 1990. The SALC concluded that
s 7(3)
–
'… was only meant to be an
outlet valve to alleviate the unfairness in existing marriages that
had been made subject to the
rigid predetermined matrimonial property
systems" and that the English system allowing for a judicial
redistribution discretion
was, with the said exception of
section
7(3)
, never part of our law and "… was never intended to
be a matrimonial property system, alongside any other system.'
After
considering the comments and concerns that are incidentally similar
to those being raised by the
amicus
in this application, the
SALC indicated that it was against the extension of the court's
discretion to distribute assets of spouses
married after 1 November
1984 with the exclusion of community of property and community of
profit and loss and the accrual.
[24]
The
amicus
, correctly in my view, states that
s 7(3)(a)
reflects the intention of the legislature to grant the court a
discretionary power to order a redistribution of assets, even if
such
redistribution was to differ radically from the content of the
antenuptial agreement entered into between the parties. The
amicus
opines that by setting the cut-off date of 1 November 1984, it
appears that the legislature intended to address the plight of women
who suffered under the yolk of marital power until its abolishment,
by providing for a 'type of accrual sharing' to marriages out
of
community of property that was entered into prior to 1 November 1984.
[25]
The concerns raised by the
amicus
are the following:
i.
The potential opening of floodgates and longer trial duration
and higher litigation costs that might be caused by the extension of
s 7(3)
;
ii.
The impact of an extension of
s 7(3)
on the individual's right
to freedom of contract and the principle of
pacta sunt servanda
versus judicial interference in respect thereof, and the
potential of ensuing legal uncertainty;
iii.
No concrete evidence or statistics are provided that women in
general are in a weaker bargaining position than men, or in support
of the notion that people (and especially women) do not really
understand the consequences when entering into an antenuptial
contract;
iv.
The court should exercise caution in allowing for behaviour
and the broad concept of 'behavioural law' to be incorporated into
the
law of contract, thereby potentially creating a different and
uncertain set of principles against which antenuptial agreements
should be evaluated;
v.
An antenuptial agreement might be described as a contract
sui
generis
, but it remains a contract and public policy demands that
contracts be honoured;
vi.
The
principle laid down in
AB
v Pridwin Preparatory School
[9]
will apply if in
specific circumstances, the antenuptial agreement has an extremely
inequitable effect;
vii.
Potential implication for creditors and other parties where
reliance is placed by such parties on the marriage contract and the
consequences thereof;
viii.
Horizontal v vertical impact of the Constitution in matters
where two private parties contract.
[26]
The
amicus
refers to comparative law and the different
approaches in other jurisdictions and states:
'Other legal systems which provide for
a judicial discretion regarding the division of assets experience
problems due to lack of
predictability, consistency and fairness.'
[27]
In the final instance, the
amicus
submits that the
retrospective working of the relief sought, if granted, is unclear
and that the question whether or not the applicant
has an interest in
the relief sought depends on the interpretation and clarification of
the legal position on this issue. This
issue is relevant to the
applicant's
locus standi
in the current application and needs
to be addressed before the constitutional validity of the cut-off
date incorporated in
s 7(3)(a)
of the
Divorce Act is
considered.
Locus
standi
[28]
The
amicus
submits that specific rights vested in Mrs. G[....]
and her husband at the time of their marriage and the registration of
their
antenuptial contract. As a result, the exercising of the
parties' rights pertaining to the division of their assets is
deferred
until the dissolution of the marriage. Thus, the
amicus
argues, because the matrimonial property regime and its
consequences upon divorce were established at the time that the
parties
got married, the applicable Act that governs the dissolution
of the marriage was the
Divorce Act as
it then read. The
amicus
asks the following question:
'[D]oes a party upon registration of
the antenuptial contract obtain a vested right to enforce the
patrimonial consequences of the
contract in accordance with the law
as it was at the time of entering into the contract, in this case the
Divorce Act in
its unamended form? If so, can an order of
constitutional invalidity of [a] part of
section 7(3)
(prospectively
or retrospectively to the date that the Constitution came into
effect) change the position that was established
at the time of
concluding the antenuptial contract?'
The
amicus
submits that the right to have the dissolution of the
marriage determined in accordance with the antenuptial agreement,
vested at
the time of entering into the agreement. The law applicable
at the time was the
Divorce Act. As
there was no Constitution when
the applicant and the third respondent married, there could be no
constitutional inconsistency.
The applicant can also not be provided
with more rights at divorce than she had at the conclusion of the
marriage, and a declaration
of constitutional invalidity cannot
expand the applicant's rights.
[29]
Based on the
judgment of the Supreme Court of Appeal in
Four
Wheel Drive Accessory Distributors CC v Rattan NO
[10]
the
amicus
submits
that if the court applies the legislation that was applicable at the
date of the entering into the antenuptial agreement,
when the
contractual rights vested, a declaration of constitutional invalidity
will not hold any benefit for the applicant and
will be merely
academic. In that event, the applicant does not have
locus
standi
to
bring these proceedings.
[30]
Counsel for the applicant submits that s 7(3) is a power exercised by
the court at the
time of divorce, not at the time any antenuptial
contract was concluded. As Mrs. G[....]'s divorce proceedings are
pending and
were instituted after the commencement of the final
Constitution, no questions of constitutional retrospectivity arise at
all.
Counsel highlights that the
amicus
raised the issue of
standing in the course of its heads of argument a week before the
hearing after the applicant has filed all
of its affidavits. Standing
is indeed an issue of law, but it is determined on the basis of the
pleadings, in this case, the affidavits.
In addition, the applicant
made it clear that the challenge is not only brought in her own
interests. It is evident from the founding
affidavit that the
application falls within the ambit of both sections 38(a) and (c) of
the Constitution.
[31]
I am of the view
that
s 7(3)
of the
Divorce Act provides
a power to be exercised by
the court at the time of divorce. It is only at the time of the
divorce that
s 7(3)
of the
Divorce Act is
triggered. Even in its
current form, the section provides relief to spouses that meet the
jurisdictional requirements at the time
of divorce, irrespective of
what the parties agreed to in the antenuptial agreement. I agree with
Mahlantla J, who recently held
in the context of the enforcement of
rights under a will that public policy must be determined and
measured at the time at which
rights are enforced rather than at the
time the will was executed.
[11]
The contention
that the
Divorce Act applies
as it read at the time of the conclusion
of the marriage is unsustainable.
[32]
As is indicated herein below,
s 7(3)(a)
is not aimed at changing the
matrimonial property regime agreed to by the parties, but to provide
relief in certain carefully circumscribed
instances to spouses who
contributed directly or indirectly to the maintenance or increase of
the estate of their spouses whilst
married out of community of
property with the exclusion of the accrual system on the date when
the marriage is terminated by divorce.
The applicant has the
necessary standing to bring this application.
Discussion
(i)
The tests to be applied in evaluating the constitutional attack
[33]
Mrs. G[....]
claims that the constitutional validity of
s7(3)(a)
needs to be
determined with reference to
s 9(1)
and s 9(3) of the Constitution. A
distinction is drawn between the test for constitutional validity in
terms of these two subsections
of s 9 of the Constitution. Section
9(1) requires that all persons in similar positions must be afforded
the same rights.
[12]
[34]
For purposes of
this application,
the Constitutional Court’s approach as set out in
Harksen
v Lane N.O.
[13]
is instructive. A
court needs to answer the following question:
‘
Does the provision
differentiate between people or categories of people? If so, does the
differentiation bear a rational connection
to a legitimate government
purpose? If it does not, then there is a violation of s 8(1) [the
equivalent of s 9(1) of the 1996 Constitution].
Even if it does bear
a rational connection, it might nevertheless amount to
discrimination.’
[35]
In
Phaahla
v Minister of Justice and Correctional Services and Another
(Tlhakanye Intervening)
[14]
the Constitutional
Court reiterated that it is a well-established principle in
our
law that
where
an
impugned
provision
differentiates
between
categories
of people, it must
bear a rational connection to a legitimate government purpose,
otherwise the differentiation is in violation
of s 9(1) of the
Constitution. Rationality operates as a minimum standard, a
constitutional baseline, that applies even in circumstances
where no
fundamental right or other constitutional standard is directly
applicable.
[15]
[36]
In
New
National Party v Government of South Africa,
[16]
Yacoob J drew a
distinction between rationality and reasonableness as standards of
review of legislative schemes. He held that the
former was the
appropriate standard in light of the separation of powers. Section
9(1) thus presents a very low threshold to meet,
with the
Constitutional Court in
New
National Party of South Africa
and
United
Democratic Movement v President of the Republic of South Africa
[17]
invoking a narrow
notion of 'rationality' as mere connection between a legitimate state
purpose and the means chosen, when it held
the legislative scheme to
be rational and thus constitutional.
[37]
Section 9(3) of
the Constitution provides a more rigorous prohibition on unfair
discrimination. Where there is an allegation that
a particular
legislative rule violates s 9(3) of the Constitution, a two-stage
analysis is followed. In the first stage it must
be determined
whether the impugned rule differentiates between people or groups and
whether the differentiation amounts to discrimination.
Once it has
been determined that the differentiation amounts to discrimination,
it must be determined whether or not the discrimination
is
unfair.
[18]
(ii)
Marriage and matrimonial property regimes
[38]
A civil marriage
is traditionally defined as 'the legally recognised life-long
voluntary union between one man and one woman to
the exclusion of all
other persons'.
[19]
Despite
the prevalence of divorce in modern days, it can still be assumed
that parties conclude a marriage with some sense of permanency,
and
at minimum, a long-term commitment in mind. Hahlo,
[20]
stated that although marriage is a contract in that it is based on
the consent of the parties, it is not an ordinary private contract.
He explained – '… the act of marriage is a juristic act
sui
generis,
and
the relationship which it creates is not an ordinary contractual
relationship but involves a status of a public character.'
Heaton and
Kruger
[21]
argue that there
are so many differences between a contract and a civil marriage as a
type of agreement, that it is undesirable
to describe a civil
marriage as a type of contract. For current purposes, it is relevant
to take note of the fact that one of the
key differences between
marriage and a contract is that a marriage cannot be dissolved by
consent – only the death of a spouse
or a decree by a competent
court can bring an end to it.
[22]
[39]
The consequences
of a marriage can be categorised as personal or proprietary
consequences. The duties of cohabitation, conjugal
fidelity and
reciprocal support are personal consequences of a marriage. These
consequences are 'of the essence' of the matrimonial
relationship and
cannot be excluded by agreement.
[23]
Community of property and profit and loss is a proprietary
consequence of marriage and can be excluded or modified by
antenuptial
contract, or changed by postnuptial contract.
[24]
[40]
Two main
matrimonial property regimes existed in South Africa prior to the
commencement of the MPA on 1 November 1984. These were
(i) marriages
in community of property with the marital power, and (ii) marriages
out of community of property with the exclusion
of both community of
profit and loss and the marital power.
[25]
Marriage in
community of property is characterised by the joint nature of
ownership of assets by the spouses. In marriages out of
community of
property both spouses retained their separate estates.
[26]
The MPA brought
about major changes. The marital power was abolished in respect of
marriages in community of property, which resulted
in a total
abolishment of the notion of marital power, and the Act introduced
the accrual system as a second category of marriages
out of community
of property.
[41]
For all practical
purposes,
[27]
intending spouses
can now choose between three matrimonial property systems: (i)
community of property, (ii) marriage out of community
of property
with the exclusion of the accrual system, and (iii) marriage out of
community of property with the accrual system.
Each of these
matrimonial property regimes has its advantages and disadvantages.
Since this application deals exclusively with
marriages out of
community of property with the exclusion of the accrual system, it is
not necessary to consider the advantages
and disadvantages of all
three standard regimes.
[42]
Where both parties
to a marriage out of community of property with the exclusion of the
accrual system are economically active and
support each other to more
or less the same degree to be economically successful in their
respective endeavours, it is difficult
to identify any real
disadvantages that this matrimonial property regime has for the
parties. Often, however, one party becomes
economically inactive, or
less active than the other after the conclusion of the marriage.
While it was historically the wife who
sacrificed her career and
exited the labour market, or took up employment with
family-compatible hours at a lower salary to run
the joint household
and take care of the children, occurrences of men fulfilling the
traditional role of homemaker while their
professional wives pursue
their careers are increasing. Both scenarios provide for an economic
inactive or less active party ("the
economically disadvantaged
party"). The main disadvantage of a marriage out of community of
property with the exclusion of
the accrual system and thus a system
of complete separation, in these circumstances, is that no matter how
long the marriage has
endured and how much the economically
disadvantaged party has contributed to the other party's economic and
financial success,
the economically disadvantaged party does not as a
right share in the latter's gains. The advantage of a system of
complete separation
for the economically active party, is that at the
dissolution of the marriage through divorce, he or she reaps the
fruits of both
spouses' contribution, because only one estate
increased during the duration of the marriage. Women are, however,
still predominantly
found in the position of the economically
disadvantaged party. This is an international phenomenon and not
unique to the South
African context.
[28]
The wide
manifestation of women as economically disadvantaged as indicated in
the experts' reports, belies the
amicus
'
submission that recent changes in women's circumstances render the
relief provided in s 7(3)(a) of little consequence.
[43]
I pause to note that although emphasis is placed on the position
where one party is rendered
an economically disadvantaged party
because of the interaction between the provisions of the parties'
antenuptial agreement and
the parties' post-marital realities, it is
likewise possible for both spouses to remain economically active but
for one party to
directly or indirectly contribute to the maintenance
or the growth of the other's estate ("the contributing spouse").
A similar inequality will arise, although the consequences on divorce
are not so pronounced or dire for the contributing spouse
as for an
economically disadvantaged party.
[44]
The legislature,
in an effort to address the obvious disadvantage suffered by
economically
disadvantaged
parties
in
marriages
out
of
community
of
property concluded
before the commencement of the MPA, introduced s 7(3)(a). Botha JA
explained in
Beaumont
v Beaumont
[29]
that s 7(3) was
introduced as –
'an entirely novel concept into this
branch of our law: the power of the Court under certain circumstances
to order the transfer
of assets of the one spouse to the other.'
[45]
Botha JA coined an order made in terms of s 7(3) for convenience sake
'a redistribution
order', and agreed with Kriegler J, as he then was,
who held in the court a quo that the creation of the power enabling a
court
to make such a redistribution order was 'obviously a reforming
and remedial measure'. He continued:
'What the measure was designed to
remedy is trenchantly demonstrated by the facts of the present case:
the inequity which could
flow from the failure of the law to
recognise a right of a spouse upon divorce to claim an adjustment of
a disparity between the
respective assets of the spouses which is
incommensurate with their respective contributions during the
subsistence of the marriage
to the maintenance or increase of the
estate of the one or the other.'
[46]
A few years later,
in
Beira
v Beira
[30]
the court
explained that s 7(3):
'[w]as enacted to redress a
deficiency, namely to enable both spouses to enjoy their rightful
shares in the accumulated wealth residing
in the one which their
joint endeavours during the subsistence of the marriage had brought
them.'
[47]
Although Botha JA
coined an order granted under s 7(3) 'conveniently as a
redistribution order', a s 7(3) order does not bring about
a change
regarding the agreed-to matrimonial property regime that determines
and regulates the proprietary consequences of a particular
marriage.
Robinson and Horsten
[31]
emphasise that s
7(3) does not grant the court a judicial discretion to create a
system of accrual that the parties themselves did
not create or to
redistribute the spouses' assets in a way that seems fair. In
Beira
,
supra,
Leveson
J expressly stated that it was not the aim of the legislature for a s
7(3) order to put the parties in equal financial positions.
The aim
of s 7(3) is to redress the unfair financial imbalance flowing from
the very nature of a marriage being out of community
of property in
circumstances where one party contributed to the other's maintenance
or the increase of the other's estate during
the existence of the
marriage.
[32]
A spouse does not
qualify as having made a contribution as a matter of course by virtue
of being married,
[33]
the jurisdictional
requirements of s 7(3) read with ss 7(4), (5) and (6) need to be met.
The practical effect of a s 7(3) order
is that the party who
contributed to the other's gain is compensated for its contribution
to the extent that a court finds just
and equitable. To this end, the
court is cloaked with a wide discretion taking into account an
infinite variety of factors.
[34]
[48]
The legislature prescribed a number of prerequisites that must be
satisfied before an order
can be granted in terms of s 7(3)(a). The
first requirement, coincidentally the requirement that underpins this
application, is
that the marriage must have been entered into before
the coming into operation of the MPA. It is, however, not open to all
parties
married out of community of property before the commencement
of the MPA to approach the court for a redistribution in the nature
as provided for by s 7(3)(a), a fact attested to by the reality that
the courts were not flooded by applications for redistribution
when
the MPA commenced, as was predicted by some. The remaining
requirements act as the proverbial gatekeepers, in that the remedy
is
only available in (i) the absence of any agreement between the
parties regarding the division of their estates, where an applicant
(ii) contributed directly or indirectly to the maintenance or
increase of the estate of his or her spouse during the subsistence
of
the marriage, either by the rendering of services or the saving of
expenses which would otherwise have been incurred.
(iii)
Enquiry into the constitutional validity of s 7(3)(a)
[49]
To determine
whether or not the Bill of Rights, and thus section 9 of the
Constitution, applies to matrimonial property law, one
need only to
turn to the decision of the Constitutional Court in
Van
der Merwe v Road Accident Fund and Another (Women's Legal Centre as
Amicus Curiae
)("
Van
der Merwe").
[35]
The facts in
Van
der Merwe
are
distinguishable, however, in
Van
der Merwe
the
plaintiff's claim was met by a submission that:
'[M]arriage is a matter
of choice and so too are the proprietary consequences of marriage.
The applicant chose marriage in community
of property and … it
is fair and reasonable that she be kept to the immutable consequences
of her choice. It is not now
open to her to challenge the
constitutional validity of the law she opted to marry under'.
[36]
[50]
Moseneke DCJ responded as follows:
'[61] This line of reasoning falters
on two grounds. First, the constitutional validity or otherwise of
legislation does not derive
from the personal choice, preference,
subjective consideration or other conduct of the person affected by
the law. The objective
validity of a law stems from the Constitution
itself, which in s 2, proclaims that the Constitution is the supreme
law and that
law inconsistent with it is invalid. Several other
provisions of the Constitution buttress this foundational injunction
in a democratic
constitutional State. A few should suffice. Section
8(1) affirms that the Bill of Rights applies to all law and binds all
organs
of State including the Judiciary. Section 39(2) obliges courts
to interpret legislation in a manner that promotes the spirit,
purport
and objects of the Bill of Rights. And importantly, s 172(1)
makes plain that, when deciding a constitutional matter within its
power, a court must declare that any law that is inconsistent with
the Constitution is invalid to the extent of its inconsistency.
Thus
the constitutional obligation of a competent court to test the
objective consistency or otherwise of a law against the Constitution
does not depend on and cannot be frustrated by the conduct of
litigants or holders of the rights in issue. Consequently, the
submission
that a waiver would, in the context of this case, confer
validity on a law that otherwise lacks a legitimate purpose has no
merit.
[62]
Second, ordinarily the starting point of a justification enquiry
would be to examine the
purpose the government articulates in support
of the legislation under challenge. In this case the government did
not proffer a
purpose to validate the impugned provision. If
anything, the government contends that the provision is inconsistent
with the Constitution
because it is irrational or unfairly
discriminatory. It correctly, in my view, disavowed the existence of
a legitimate purpose
for withholding a right of recourse for
patrimonial loss from physically brutalised spouses in marriages in
community of property
whilst granting the protection to spouses in
other forms of marriages or indeed to parties in other domestic
partnerships.
[63]
Of course, the pursuit of a legitimate government purpose is central
to a limitation analysis.
The Court is required to assess the
importance of the purpose of a law, the relationship between a
limitation and its purpose and
the existence of less restricted means
to achieve the purpose. However, in this case there is no legitimate
purpose to validate
the impugned law. The absence of a legitimate
purpose means that there is nothing to assess. The lack of a
legitimate purpose renders,
at the outset, the limitation
unjustifiable. I am satisfied that s 18
(b)
of the Act is
inconsistent with the Constitution because it limits the equality
provision of s 9(1) without any justification.'
[51]
As in
Van der Merwe,
the Minister did not proffer a purpose to
validate the impugned cut-off date incorporated in s 7(3)(a). In
fact, the Minister filed
its answering affidavit with the aim of
supplementing the arguments raised by the applicant. The
amicus
,
however, highlighted the legislative purpose of s 7(3) and I am bound
to consider it.
Section
9(1) rationality enquiry
[52]
The legislature
crafted a reforming and remedial measure but limited its application
to marriages out of community of property concluded
before the MPA
commenced. Since the possibility of granting a redistribution order
was created concomitantly with the introduction
of the system of
accrual sharing, it can arguably be assumed that s 7(3) was intended
to be a transitional measure,
[37]
as submitted by
the
amicus.
The
legislature arguably did not extend the relief to marriages out of
community of property excluding the accrual system because
the MPA
provided the option of choosing between a system that includes
accrual sharing and a system that excludes accrual sharing.
[38]
Parties seemingly exercise a deliberate choice
when they exclude
the accrual system and incorporate that choice in a written
antenuptial agreement executed before a notary. The
question is
whether in this context it can be said that legislative innovation
that brought into force
s 7(3)
of the
Divorce Act to
address the
plight of economically disadvantaged parties who did not have the
opportunity to choose a more beneficial marital regime
in the form of
the accrual system, is irrational. By restricting the operation of
s
7(3)
to marriages concluded before 1 November 1984 the legislature
honoured the principle of freedom of contract and
pacta
sunt
servanda,
and that is not
without merit. It cannot be held that the inclusion of the time-bar
was irrational. This is, however, not the end
of the matter.
Section
9(3)
enquiry
[53]
For the purpose of a rationality enquiry in terms of s 9(1) of the
Constitution, the fact
that s 21 of the MPA provides parties with the
opportunity to jointly apply for leave to change their matrimonial
property system,
is of no-consequence. As is the fact that the
interaction between the
Divorce Act and
the MPA affords the relief
provided for in
s 7(3)(a)
of the
Divorce Act to
spouses married out
of community of property before 1 November 1984, despite them not
having utilised the option in
s 21
of the MPA to cause the provisions
of Chapter 1 of the MPA to apply in respect of their marriages. These
factors are, however,
relevant in the
s 9(3)
enquiry, because,
parties married out of community of property with the exclusion of
the accrual after 1 November 1984 and parties
married out of
community of property before 1 November 1984 who refrained from or
neglected to cause the provisions of Chapter
1 of the MPA to apply in
respect of their marriages, find themselves in similar positions. No
basis exists to exclude the view
that parties made a deliberate
choice in both scenarios. And yet economically disadvantaged parties
from the former group cannot
approach a court for the relief provided
for in
s 7(3)(a)
, but economically disadvantaged parties from the
latter group can, solely based on the date of the marriage.
[54]
It cannot be gainsaid that
s 7(3)(a)
of the
Divorce Act
differentiates
between spouses married out of community of property
who were married before the MPA commenced, and spouses married out of
community
of property with the exclusion of the accrual system after
the MPA commenced. The obvious disparity and inequity that ensues
when
parties who are married out of community of property and where
one party contributed to the maintenance or increase of the estate
of
the other party, file for divorce, moved the legislature to enact
s
7(3)(a)
of the
Divorce Act. By
incorporating a cut-off date for the
application of
s 7(3)
, economically disadvantaged parties who were
married after 1 November 1984 cannot approach a court to make an
order that is just
and equitable if they meet the remaining
jurisdictional requirements of
s7(3).
Thus, the inequity which is
caused because the economically disadvantaged spouse nevertheless
made a direct or indirect contribution
towards the other spouse's
estate, persists.
[55]
It is, in my view, not necessary to determine whether the cut-off
date affects black women
to a greater extent than other women in the
country, or whether it is indeed an illusion to accept that women, in
general, have
a choice to agree to the inclusion or exclusion of the
accrual system. Aspects like the now abolished marital power and the
man's
headship of the family are factors that contributed, and
continues to play a significant role in the way some men, and even
women
themselves, regard the roles, and stature of women in society.
Only those who go blindfolded through life can deny that gender
equality has not yet been achieved in South Africa. In fact, the
South African society still has a long way to go. However, the
equality issue brought to the fore by this application is not solely
attributable to race or gender or religion, but also to economic
inequity. The grounds listed in s 9(3) of the Constitution are
non-exhaustive and discrimination need not be embedded in the grounds
listed in s 9(3) before constitutional protection can be claimed.
[56]
Bonthuys
[39]
points out:
'[A]s a general
proposition, antenuptial contracts usually favour wealthier spouses
by excluding the common-law system of property
sharing with poorer
spouses.'
[40]
The
contributory role of gender and race in the equation is found therein
that:
'As a consequence of gender
discrimination, women tend to be poorer than men and to earn less in
the marketplace. Stereotypical
roles also entail that women tend to
devote more time and effort to childcare and housework which further
impacts on their earning
capacity.'
Within
this context black women are regarded as the 'marginalised of the
marginalised.'
[41]
The constitutional
validity of s 7(3)(a) should, however, in my view, not solely be
considered from the perspective of the parties'
position as it is
when an antenuptial agreement is concluded, because there can be a
plethora of legitimate reasons as to why parties
would agree to
conclude a marriage out of community of property with the exclusion
of the accrual system, e.g., a proud less affluent
party who is
intending to marry the love of their life who happens to be wealthy,
may wish to demonstrate that the marriage is
concluded solely for the
reason of love, and not to gain any future patrimonial benefits.
[57]
The inequality at hand is caused when, after the conclusion of the
marriage, a distortion
is caused by the fact that one spouse
contributes directly or indirectly to the other's maintenance or the
increase of the other's
estate without any
quid pro quo
. In
ideal circumstances where parties commit 'for better and worse, until
death do us part' the economic inequality that follows
when one
spouse contributes to the other's maintenance or estate growth while
its own estate decreases or remains stagnant, may
not even be
noticed. The unity of marriage conceals economic disparity because it
is, for the most part, during the subsistence
of the marriage of no
consequence. However, where it becomes apparent on divorce that one
spouse's estate increased because of
the other spouse's contribution
while the latter spouse's estate decreased, the party who received
maintenance from the other or
whose estate increased because of a
direct or indirect contribution by the other, have received what can
be described as an unfair
economic advantage on the basis of the
marriage. This is the inequality that can be addressed by an order in
terms of s 7(3)(a),
irrespective of the race or gender of the
economically disadvantaged party. This remedy is currently available
only to spouses
married before 1 November 1984.
[58]
Section 7(3)(a) differentiates between parties solely based on the
date of commencement
of the MPA in circumstances where parties could
either (i) apply to incorporate the accrual system into their
existing marriage
property regime and for one or other reason,
failed, or refrained from doing so, and (ii) where parties decided to
exclude the
accrual system. The only difference between these groups
is speculative in that it can be argued that there might be members
in
the first group who did not know that they could incorporate the
accrual system post the commencement of the MPA, while a deliberate
choice underpinned the position of the second group. Speculation
aside, these groups are
par excellence
in a similar situation,
and yet the one group is denied the benefit of s 7(3)(a) only on the
basis of the date on which their marriage
was concluded. The
differentiation amounts to discrimination based on the date on which
a marriage was concluded because economically
disadvantaged parties’
human dignity is impaired if they cannot approach the court to
exercise the discretion provided for
in
s 7(3)
of the
Divorce Act.
Unlike
their counterparts whose marriages were concluded before 1
November 1984, economically disadvantaged parties who contributed to
their spouses’ maintenance or the growth of their estates, are
vulnerable parties whose only recourse is to approach the
court for
maintenance. The unequal power relationship implicit to any
maintenance claim, and the extent to which it renders an
economically
disadvantaged party vulnerable, in these circumstances speaks for
itself.
[59]
Section 7(3)
is subject to subsections (4), (5) and (6). It is
evident from a reading of these provisions that any party approaching
the court
for the relief provided for in
s 7(3)
must make out a case
that it contributed directly or indirectly to the maintenance or
increase of the estate of the other party
during the subsistence of
the marriage. It is patently unfair that an economically
disadvantaged party who can make out a case
for relief in terms of
s
7(3)
, whose contribution is not recognised and adequately compensated
by the spouse who benefitted from such contribution, is
metaphorically
left out in the cold at the mercy of the spouse whose
estate increased, without any recourse to the court to address the
injustice.
[60]
Section 7(3)
of the
Divorce Act was
recently amended by
s 1
of Act 12
of 2020 with effect from 22 October 2020, to include marriages out of
community of property –
'entered into in terms of any law
applicable in a former homeland, without entering into an antenuptial
contract or agreement in
terms of such law.'
Section
7(3)(c) does not contain a cut-off date as ss 7(3)(a) and (b) do.
This fact, in itself raises questions regarding the equal
treatment
of spouses married out of community of property with the exclusion of
the accrual system in South Africa.
[61]
The adjustive
judicial power provided by
section 7(3)
of the
Divorce Act is
aimed
at avoiding grossly inequitable discrepancies in the financial
position of spouses on divorce. Irrespective of whether the
section
was initially intended as a transitional provision, the innate
restriction in
s 7(3)(a)
based solely on the date on which a marriage
was concluded, does not in 2022, muster constitutional scrutiny. The
limitation of
the relief provided for in
s 7(3)(a)
of the
Divorce Act
to
marriages concluded prior to the commencement of the MPA violates
s 9(3) of the Constitution. The cut-off date contained in s 7(3)(a)
unfairly discriminates against people married according to a system
of complete separation of property on the ground of the date
of their
marriage. I share the view expressed by Sinclair:
[42]
'The discrimination takes the form of
denying to those people a remedy to relieve injustice that is granted
to persons married with
an identical system, but earlier.'
And:
'For couples who live on their
salaries and do not have the opportunity to amass property the
matrimonial property system that governs
their marriage turns out to
be the panacea for the poverty that will be experienced most acutely
by the divorced women [or any
economically disadvantaged party]. For
the poor, matrimonial property law is as important as an elaborate
estate planning exercise.
But for many thousands of people the
matrimonial home and a share in pension and other retirement benefits
accumulated during marriage
make the difference between forced
reliance on exiguous welfare and some form of financial security. To
these people the sharing
of property acquired by joint efforts is
crucial. To be denied an equitable remedy on the ground of the date
of one's marriage
is unacceptable'.
[62]
The
amicus curiae
drew attention to several objections to
declaring the cut-off date in s 7(3) unconstitutional, and I find it
apposite to briefly
deal with these since I have considered the
amicus
's submissions:
i.
Pacta sunt servanda:
The Constitutional Court has
already pronounced on the applicability of the Constitution and the
pacta sunt
s
ervanda
argument in
Van der Merwe
,
as indicated above. The fact that parties deliberately chose to
exclude the accrual system after 1 November 1984 is one of the
myriads of factors that a court will take into consideration when
crafting an order that is just and equitable in appropriate cases
where the jurisdictional requirements for an application in terms of
s 7(3)(a) are met.
ii.
Cognisance must be taken thereof that the legislature has
already deemed it necessary to provide courts with the discretion to
intervene
and, in appropriate circumstances, craft orders that will
bring about consequences that differ radically from the consequences
that generally flow from a chosen matrimonial property regime,
thereby overriding
pacta sunt servanda
:
a.
When a decree of
divorce is granted, a court, under
s 9(1)
of the
Divorce Act, may
make an order that the patrimonial benefits of the marriage be
forfeited by one party in favour of the other, either wholly or
in
part. The factors that a court may consider in exercising its
discretion under
s 9
are limited. The section does not empower the
court to award a portion of an errant party's separate estate to the
other party.
Forfeiture is also limited to the benefits of the
marriage and merely entails that that the spouse loses the claim he
or she has
to financial benefits generated by the other spouse;
[43]
b.
Under
s 8
of the MPA a court may grant the immediate division of the
accrual
stante
matrimonio
and under
s 8(2)
order that
the accrual system applicable to the marriage be replaced by a
matrimonial property system in terms of which accrual
sharing, as
well as community of property and community of profit and loss, are
excluded;
c.
Under
s 20
of the MPA a court may, on application, order the
immediate division of the joint estate in equal shares or on such
other basis
as the court may deem just, and under
s 20(2)
order that
the community of property be replaced by another matrimonial property
system;
The power of the court under
ss 8(2)
and
20
(2) is drastic and will, other than an order granted in terms
of
s 7(3)(a)
, result in substituting or replacing one matrimonial
property regime for another.
iii.
The
amicus
submitted
that the existence of a maintenance claim negates the necessity of a
remedy akin to what is currently afforded by
s 7(3)(a)
of the MPA. I
disagree. The difference between the nature of a maintenance claim
and an order granted in terms of
s 7(3)(a)
renders this submission
nugatory. A party receiving maintenance remains dependant on the
other. It is a well- known that post-divorce
maintenance as a
mechanism to alleviate the plight of women who are economically
reliant on their spouses is often inadequate due
to default.
[44]
It is
unjustifiable that a party who contributed to the other's maintenance
and estate growth during the subsistence of the marriage
must rely on
a remedy that signifies their continued dependence on the other. Over
the years the understanding of a marital relationship
shifted from
being regarded as a protector-and-dependant relationship, to that of
a partnership between equals.
Section 7(3)(a)
,
inter
alia,
recognises
the economic value of services provided in the domestic sphere.
Everyone has an inherent dignity and the right to have
their dignity
respected and protected. An economically disadvantaged
party's
dignity
is
implicitly
impaired
when
that
party's
contribution made on the basis of the marriage is not recognised and
he or she is left to claim maintenance alone.
iv.
Whenever a
court is provided with a discretion, uncertainty in the outcome of
proceedings prevails. Neels
[45]
explains that the
tension between legal certainty on the one hand and reasonableness
and fairness in the particular circumstances
of each case, is not
novel. The overriding certainty that does prevail in light of
s
7(3)(a)
is that the court is bound to grant an order that is just and
equitable. Undue harshness can flow from any unalterable matrimonial
property regime due to the unique factual context within which
spouses find themselves.
[46]
The legislature
provided courts with a discretion to change the matrimonial property
regime in relation to marriages in community
of property and
marriages out of community of property with the inclusion of the
accrual system. The same discretion is not afforded
in relation to
marriages out of community of property with the exclusion of the
accrual system. Any uncertainty regarding the outcome
of a
s7(3)(a)
application is preferable to 'irremediable harshness' that might flow
from circumstances where a spouse in a marriage out of community
of
property excluding the accrual system contributes directly or
indirectly to his or her spouse's accumulation of wealth on the
basis
of the marriage, and is deprived of the benefits of his or her
contribution, without being compensated therefor, on divorce.
Given
the Constitutional Court's recent decision in
Gumede,
supra,
[47]
which extended the
judicial discretion to redistribute assets to spouses in all
customary marriages, it can safely be said that
legal uncertainty
about the financial outcome of divorce does not carry excessive
weight and certainty does not trump considerations
of justice and
equality.
[48]
v.
The cut-off date in
s 7(3)(a)
is in itself the cause of legal
uncertainty and extensive legal costs. Economically disadvantaged
spouses need to rely on ingenious
manoeuvres by their legal
representatives in an attempt to claim a share of the benefits
acquired by their spouses due to their
contributions made on the
basis of the marriage when the marriage's future was rosy. If both
spouses are aware that direct and
indirect contributions by them to
the other's maintenance and estate growth during the subsistence of
the marriage may be accounted
for at the dissolution of the marriage
on divorce, there are no innate uncertainties that can prejudice any
party. Such knowledge
will provide a fair basis for the settlement of
proprietary issues on divorce. A declaration of constitutional
invalidity that
will result in the amendment of the existing position
by striking out the cut-off date contained in
s 7(3)(a)
, will not in
itself, leave legal representatives who provided advice relating to
the consequences of concluding an antenuptial
agreement liable to
client's who might be confronted with
s 7(3)(a)
applications if their
marriages were concluded after 1 November 1984.
vi.
The
amicus
raised the issue that creditors of the
advantaged spouse may be affected when a court grants an order in
terms of
s 7(3)(a).
The position of creditors is not a novel issue as
creditors' rights can theoretically be affected by
s 7(3)(a)
orders
as the section currently reads, and by orders granted in terms of
s
9
,
s 8
and
20
of the MPA. No novel position will be created if the
application of
s 7(3)(a)
is extended to all marriages out of
community of property with the exclusion of the accrual system.
vii.
The
amicus
submits that other legal systems that
provide for a judicial discretion regarding the division of assets
experience problems due
to a lack of predictability, consistency, and
fairness. I did not undertake a comprehensive comparative study but
mainly relied
on academic publications when considering this
submission. The article 'The financial consequences of divorce:
s
7(3)
of the
Divorce Act 1979
– a comparative study' by Nicholas
DC Dillon, published in XIX CILSA 1986, is instructive. Dillon states
the following:
'In England the right of freedom to
contract between spouses exists and the parties may order their
property rights as they think
fit. Nonetheless the court has a
discretion to vary or even to extinguish any marital contract.
In New Zealand a similar
view is taken and the parties are free to make marital contracts but
the courts retain a discretion not
to give effect to contracts that
they consider unjust.
[49]
In Canada each province has its own
rules in regard to the validity and effect of marriage contracts. All
the provinces allow marriage
contracts but each province provides
varying degrees of restraint upon the parties.’
Dillon concludes that while most
jurisdictions allow parties to conclude antenuptial contracts, most
states complement this freedom
of contract by certain control
mechanisms, some by administrative requirements such as registration
and/ or court approval, or
by a judicial discretion that permits the
court to vary or discard the contract. He held that in introducing
the judicial discretion
contained in
s 7(3)
, the legislature is
following developments which have taken place in many other
jurisdictions:
'In something of a universal attempt
to achieve an equitable distribution of the assets of the parties to
a marital partnership
on its dissolution, many legislatures have
introduced a form of judicial discretion to complement their usual
matrimonial proprietary
regime(s).'
Prenuptial agreements are
known in Australia as ‘binding financial agreements’. It
became enforceable with the enactment
of the Family Law Amendment Act
2000. Part VIIIA of the Family Law Act sets forth particular
provisions concerning the oversight
to
be
given
to
such
agreements
by family
solicitors.
In
Chaffin
v Chaffin
[50]
the an agreement
that was entered into ten days before the wedding was set aside when
challenged. The court considered that the
husband was 10 years older
than the wife, in a significantly superior financial position to the
wife while the wife was financially
dependent on the husband, and
pregnant, when the agreement was signed. The court held that the wife
was at a ‘special disadvantage’
due to a combination of
the mentioned factors and the husband acted unconscientiously when he
took advantage of thereof. The difference
in the ‘bargaining
power’ between the parties was one of the factors the court
considered when setting aside the agreement.
As far as the position in
Canada is concerned, an analyses of the applicable legislation
indicates that a Canadian court may modify
or even ignore a
prenuptial agreement in some circumstances.
[51]
Most Canadian
provinces provide for judicial oversight of prenuptial agreements but
the standard of judicial review varies from
province to province.
[52]
It is evident that other legal
jurisdictions recognised the necessity to blend predictability and
certainty with fairness and justice
based on the unique facts of each
individual matter at hand.
The
way forward
[63]
Mrs. G[....]'s
counsel submits that section 172(1)(a) of the Constitution enjoins
this Court to declare a law that is inconsistent
with the
Constitution invalid to the extent of its inconsistency. The
applicant seeks an order to the effect that
s 7(3)(a)
of the
Divorce
Act is
unconstitutional and invalid to the extent that it limits the
operation of
s 7(3)(a)
to marriages out of community of property
'entered into before the commencement of the
Matrimonial Property
Act, 1984
.' Counsel contends that it is critical that any order made
by the court provides for the order to apply to the applicant's
divorce
action as well as other similarly placed spouses where
divorce proceedings are still pending. It is trite that parties must
be
granted effective relief.
[53]
[64]
The state respondents' representative stated that if the court was to
issue an order with
full retrospective force, considerable
uncertainty would be created in respect of divorce orders that have
already been granted.
In reply hereto, Mrs. G[....]'s counsel
submitted that due to the broad discretionary power afforded by s
172(1)(b)(i) of the Constitution
the court can limit the
retrospectivity of a declaration of invalidity provided that it is
just and equitable to do so. Counsel
submitted that it is just and
equitable in these circumstances to limit the retrospectivity of the
declaration of invalidity, so
that it does not affect divorce
proceedings that have already been finalised.
[65]
Mrs. G[....]'s
counsel, in my view correctly, submits that s 7(3)(a) allows a court
to interfere in a private relationship to avoid
injustice. It is
axiomatic that no injustice could be done if that power was also
available to courts relating to marriages out
of community of
property with the exclusion of the accrual system. The court's s
7(3)- discretion is wide in the sense that it
is to be exercised in a
manner that will bring about a just and equitable outcome in the
factual context concerned, but the power
to exercise the discretion
is circumscribed and limited to the two scenarios prescribed in s
7(4) to wit -
the
party in whose favour the order is granted must have contributed
directly or indirectly to the (i) maintenance, or (ii) increase
of
the estate of the other party, during the subsistence of the
marriage. The laudable aim of the section has been dealt with above.
The unfair discrimination that is caused by the exclusionary time-bar
in s 7(3)(a) can be corrected by removing the time-bar according
to
the Constitutional Court's guidance in
Coetzee
v Government of the Republic of South Africa,
[54]
where the court
held:
'[I]f the good is not dependent on the
bad and can be separated from it, one gives effect to the good that
remains after the separation
if it still gives effect to the main
objective of the statute.'
[66]
Mrs. G[....]'s counsel submits that the severance of the time-bar
from the remainder of
s 7(3)(a) will not cause any difficulty to the
manner in which
s 7
of the
Divorce Act operates
, and it would provide
an appropriate remedy. An order to this effect by this court will not
prevent the legislature from amending
the
Divorce Act if
it is
inclined to address the various problems associated with the said
Act, including the constitutional violations demonstrated
in this
application.
[67]
In the alternative, the applicant seeks an order to the effect that
the court suspends
the constitutional invalidity of the time bar
contained in s 7(3)(a) to afford the legislature sufficient time to
amend
s 7
of the
Divorce Act to
remedy its unconstitutional defects
demonstrated in this application, coupled with the suspension order
grant an interim remedy
to cure the constitutional defects contained
in
s 7(3)(a)
of the
Divorce Act during
the period of suspension.
Counsel submits that a failure to grant such an interim remedy would
unnecessarily prolong divorce proceedings
that are dependent on the
curing of the constitutional defects in
s 7(3)(a)
of the
Divorce Act
and
would inhibit spouses from being able to escape abusive
marriages. Pending the remedying by Parliament of the constitutional
defects
in the impugned section, the court is requested to issue an
interim order that
s 7(3)(a)
of the
Divorce Act is
read without the
time bar, and that Parliament is ordered to remedy the constitutional
defects within 18 months from the date of
the order, failing which
the alternative relief shall continue to apply.
[68]
Counsel for the
Minister submits that the Minister saw no reason why the court's
discretion to grant redistribution in the circumstances
provided for
in
s 7(3)
of the
Divorce Act cannot
be extended to individuals in the
position of the applicant and other individuals in her class. After
considering all parties'
submissions in this regard, I am of the view
that it is just to follow the precedent set in
Gumede.
No
reason exists that justifies a suspension of the declaration of
invalidity. The striking down of the impugned
portion
of
s
7(3)(a)
,
namely
the
time-bar,
will
not
leave
a
lacuna
that renders the
suspension of the order appropriate.
[55]
As in
Gumede
it is
necessary to emphasise that nothing in the order this court is intent
on making, will affect marriages out of community of
property with
the exclusion of the accrual system concluded after 1 November 1984,
that have been terminated either by death or
by divorce before the
date of this order.
Costs
[69]
The first and third respondents abided the court's decision from the
onset, and there should
not be an order of costs against them. Mrs.
G[....]'s counsel seeks a costs order against the Minister. The
relief claimed by the
applicant in her notice of motion, as far as
costs are concerned, encompasses the following:
'The costs of the applicant, including
the costs of two counsel, shall be paid jointly and severally by any
respondent opposing
the application.'
[70]
As previously stated, the Minister did not in the final instance
oppose the application,
an approach that Mrs. G[....]'s counsel
submits to be laudable. After initially filing a notice of intention
to oppose, the Minister
withdrew the opposition. It is difficult to
understand why Mrs. G[....] in these circumstances seeks a costs
order against the
Minister where she indicated in the notice of
motion that a costs order is only sought against respondents that
oppose the application.
ORDER
In
the result, the following order is granted:
1.
Section 7(3)(a)
of the
Divorce Act, 70 of 1979
, is declared
inconsistent with the Constitution and invalid to the extent that the
provision limits the operation of
section 7(3)
of the
Divorce Act to
marriages out of community of property entered into before the
commencement of the
Matrimonial Property Act, 88 of 1984
;
2.
The inclusion of the words ‘
entered into before the
commencement of the
Matrimonial Property Act, 1984
’ in
section 7(3)(a)
of the
Divorce Act, 70 of 1979
, is declared
inconsistent with the Constitution and invalid. These words are
notionally severed from
section 7(3)(a)
of the
Divorce Act, 70 of
1979
, and
section 7(3)(a)
of the
Divorce Act, 70 of 1979
, is to be
read as though the words ‘
entered into before the
commencement of the
Matrimonial Property Act, 1984
'
do not appear
in the section.
3.
In terms of section 172(1)(b) of the Constitution, the orders in
paragraphs (1)
and (2) of this order shall not affect the legal
consequences of any act done or omission or fact existing in relation
to a marriage
out of community of property with the exclusion of the
accrual system concluded after 1 November 1984, before this order was
made;
4.
The aforementioned orders, in so far as they declare provisions of an
Act of
Parliament invalid, are referred to the Constitutional Court
for confirmation in terms of section 172(2)(a) of the Constitution,
1996, and the Registrar of this Court is directed to comply with Rule
16(1) of the Rules of the Constitutional Court in this regard.
5.
Each party is to pay its own costs.
E
van der Schyff
Judge
of the High Court
Delivered:
This judgement is handed down electronically by uploading it to the
electronic file of this matter on CaseLines. As a
courtesy gesture,
it will be sent to the parties/their legal representatives by email.
Counsel
for the applicant:
Adv. S. Scott
Instructed
by:
CLARKS ATTORNEYS
For
the second respondent:
Adv. Mphaga SC
With:
Adv. MD Sekwakweng
Instructed
by:
The State Attorney
For
the
amicus curiae:
Adv. LC Haupt SC
With:
Adv. S Mentz,
And
with:
Adv. B Stadler
And
with:
Adv. B Nchabeleng
Date
of the hearing:
11 March 2022
Date
of judgment:
11 May 2022
[1]
1 November 1984 is the date of commencement of the
Matrimonial
Property Act 88 of 1984
.
[2]
Section 9(1):
Everyone is equal before the law and has the right to
equal protection and benefit of the law.
[3]
[2021] ZACC 51
(31 December 2021) para [62].
[4]
Section 9(3)
– The state may not unfairly discriminate
directly or indirectly against anyone on one or more grounds,
including race,
gender, sex, pregnancy, marital status, ethnic or
social origin, colour, sexual orientation, age, disability,
religion, conscience,
belief, culture, language and birth.
[5]
[1998] ZACC 1
;
1998 (2) SA 363
(CC) para [31].
[6]
2009 (3) SA 152
(CC) para [44].
[7]
S v
Makwanyane
[1995] ZACC 3
;
1995
(3) SA 391
(CC) para [102];
Ferreira
v Levin NO
1996
(1) SA 984
(CC) para [44].
[8]
Issue Paper 34 dealt with Review of Aspects of Matrimonial Property
Law. It was replaced by Issue paper 41. Before its revision
Issue
Paper 34, among others, considered whether
s 7(3)
of the Divorce Act
should be amended to extend the judicial discretion of the court
provided for in the said section, to marriages
out of community of
property with the exclusion of the accrual system. On 6 September
2021 the SALRC requested the respondents
to submit comments on the
matter raised in Issue Paper 41 dealing with the Review of Aspects
of Matrimonial Property Law, the
closing date for the submissions
was 14 January 2022.
[9]
2019 (1) SA 327 (SCA).
[10]
2019 (3) SA 451 (SCA).
[11]
King
N.O v De Jager
2021
(4) SA 1
(CC) at para 73.
[12]
Van der
Walt v Metcash Trading Ltd
[2002] ZACC 4
;
2002
(4) SA 317
(CC) at para
[24]
.
[13]
[1997] ZACC 12
;
1998 (1) SA 300
(CC) 324H-I.
[14]
2019 (2) ZACR 88 (CC) at para [46].
[15]
Price, A. The content and justification of rationality review.
(2010) 25
SAPL
346-381,
346.
[16]
[1999] ZACC 5
;
1999 (3) SA 191
(CC) para [24].
[17]
2003 (1) SA 495 (CC).
[18]
Harksen
No. O. v Lane
1998
(1) SA 300 (CC).
[19]
Heaton, J., Kruger, H. South African Family Law. 4
th
ed. LexisNexis, 13. This
definition highlights one of the differences between customary,
Muslim and Hindu marriages that permit
polygamy, and civil unions
between parties of the same sex under the Civil Unions Act 17 of
2007.
[20]
Hahlo, HR. The South African Law of Husband and Wife. 5
th
ed. JUTA, 22.
[21]
Heaton and Kruger note 19, above.
[22]
Hahlo note 20, above.
[23]
Ibid. See also Heaton and Kruger note 19, above, chapter 5.
[24]
Hahlo, note 20, above, 282, 258. Heaton and Kruger note 19, above,
chapter 6. Sections 21 and 25 of the MPA.
[25]
See,
inter
alia,
Heaton
and Kruger note 19, above, 61.
[26]
See
inter
alia
Robinson,
J. A., Human, S., Boshoff, A. and Smith, B. Introduction to South
African Family Law. LexisNexis, 132.
[27]
Hahlo, note 20 above, 311 explains that nothing prevents parties
from constructing their own made-to-measure system.
[28]
Sinclair, J. ‘Family Rights’ in Van Wyk, D.,
et
al
(eds)
Rights and Constitutionalism – The New South Africa Legal
Order 1994 JUTA 502-572, 548.
[29]
1987 (1) SA 967
(A) 987G.
[30]
1990 (3) SA 802 (W).
[31]
Robinson, R. and Horsten, D.
The
Quantification of “Labour of Love”: reflections on the
Constitutionality of the Discretion of a Court to Redistribute
Capital Assets in terms of Section 7(3)-(6) of the South African
Divorce Act
>
.
(2010)
Speculum
Iuris
96-117,
115.
[32]
Robinson and Horsten note 31 above, 97-98.
[33]
Sonnekus, note 37 below, 763.
[34]
Apart from the direct and indirect contributions made by the
applicant, factors are listed in
s 7(5).
See also Robinson and
Horsten, note 31 above, 109.
[35]
[2006] ZACC 4
;
2006 (4) SA 230
(CC).
[36]
Par [59].
[37]
Sonnekus, J.
Herverdelingsdiskresie
by egskeiding, ‘n deugsame vrou en pacta sunt servanda.
2003
SALJ
761.
[38]
Hahlo, note 20 above, 384; Van Schalkwyk L. N.,
Gumede
v President of the Republic of South Africa and Others
2009
(3) SA 152
(KH), 2010
De
Jure
176-191,
183.
[39]
Bonthuys, E, Public Policy and the Enforcement of Antenuptial
Contracts:
W
v H
.
(2018) 135 SALJ 237-248, 241.
[40]
See also Mosey, B. How Ante-Nuptial Agreements Perpetuate Male
Dominance: A Critical Feminist Analyses of
Radmacher
v Granatino
[2010]
UKSC 42.
De
Lege Ferenda
(2021)
Vol IV, Issue ii, 50-65.
[41]
N Masiko City Press 17 August 2018.
[42]
Sinclair, note 28 above, 552.
[43]
.
Rousalis
1980
(3) SA 446
(C) at 450D-E. See also Heaton and Kruger note 19 above
135-137.
[44]
Sinclair, note 28,
supra,
553
[45]
Neels, J. L. Substantiewe geregtigheid, herverdeling en begunstiging
in die internasionale familiereg.
2001 4 TSAR 692-
709, 692.
[46]
Sinclair, note 28
,
supra,
551
fn 189.
[47]
Gumede
,
note 6 above.
[48]
See also Heaton and Kruger, note 19 above, 142.
[49]
From 2001 agreements cannot be set aside unless they cause ‘serious
injustices’ -
https://
www.international-divorce.com/prenuptial-agreements-in-new-zealand.
[50]
[2019] FamCA 260.
[51]
https://
www.international-divorce.com/prenuptial-agreements-in-canada
[52]
See also, amongst others, Ontario’s Family Law Act, R.S.O.
1990, Ch.F.3., Sec. 56(4); Nova Scotia’s Matrimonial Property
Act, R.N.S.
1989, Ch. 275
, Sec. 29; Saskatchewan’s Family
Property Act, S.S.
1997, Ch. F-6.3
, Sec. 24(2); New Brunswick’s
Marital Property Act, S.N.B. 1980, Ch. M- 11, Sec.41; British
Columbia’s Family Relations
Act, R.S.B.C.
1996, Ch. 128
, Sec.
65(1).
[53]
Fose v
Minister of Safety and Security
1997
(3) SA 788
(CC) at para [69].
[54]
Coetzee
v Government of the Republic of South Africa, Matiso v Commanding
Officer Port Elizabeth Prison
[1995] ZACC 7
;
1995
(4) SA 631
(CC) at para
[16]
.
[55]
J J and
Another v Director General, Department of Home Affairs and Others
[2003] ZACC 3
;
2003
(5) SA 621
(CC) at para
[21]
.
sino noindex
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Sello v Minister of Police N.O and Another (89077/16) [2022] ZAGPPHC 233 (13 April 2022)
[2022] ZAGPPHC 233High Court of South Africa (Gauteng Division, Pretoria)99% similar