Case Law[2023] ZAWCHC 95South Africa
Z.I v W.I and Another (13142/2022) [2023] ZAWCHC 95 (9 March 2023)
Headnotes
at 857C-D that the action may also be used to claim as ancillary relief payment in respect of the fulfilment of personal obligations relating to profits enjoyed or expenses incurred in connection with the joint property. A court has a wide equitable discretion in making a division of joint property. 10. How then should the Court exercise its discretion in the present
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Z.I v W.I and Another (13142/2022) [2023] ZAWCHC 95 (9 March 2023)
Z.I v W.I and Another (13142/2022) [2023] ZAWCHC 95 (9 March 2023)
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sino date 9 March 2023
SAFLII
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Certain
personal/private details of parties or witnesses have been
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IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
number: 13142/2022
In
the matter between:
Z[...]
I[...]
Applicant
and
W[...]
I[...]
First
respondent
THE
REGISTRAR OF DEEDS, CAPE TOWN
Second
respondent
JUDGMENT
DELIVERED ON 9 MARCH 2023
VAN
ZYL AJ:
Introduction
1.
This is an application based on the
actio
communi dividundo
for the termination
of the parties’ joint ownership of the immovable property known
as Erf [...], M[...] P[...], situated
at C[…]C[…],
W[…], M[...] P[...] (“the parties” being the
applicant and the first respondent).
The sole issue in dispute is how
the proceeds of the property are to be divided between them.
2.
The parties purchased the property jointly in 2005
after they were married in terms of Islamic law. They had two
children.
The property served as the family home until the parties’
divorce in 2015. At the time of the divorce the parties did
not
discuss what would happen with the property, but the applicant moved
out in early December 2015 to live elsewhere. The first
respondent
continues to reside on the property.
3.
The need for the termination of the parties’
joint ownership is common cause on the papers. In his answering
affidavit
the first respondent states his case as follows:
“
I
appreciate that the immovable property has to be sold, or I purchase
the share of the Applicant. I, however, do not feel it is
fair, just
or equitable that the Applicant receives half the equity in the
immovable property upon termination of ownership. I
feel that
considering the she contributed Zero Rand towards the immovable
property and benefited from it since we moved into it,
she is
entitled to 20% of its equity. Not 50% as she claims.”
4.
The applicant contends that the proceeds should be
shared equally between the parties. The first respondent, as appears
from the
quote above, claims the lion’s share of the proceeds,
as he, so he submits, paid (
inter alia
)
the monthly mortgage bond instalments in respect of the property over
the years.
The
principles underlying the termination of co-ownership
5.
There is no
dispute between the parties as to the applicable legal principles.
Where property is owned in joint ownership, each
co-owner has an
undivided share in such property, and a right to share it
(see
the discussion in Badenhorst
et
al Silberberg and Schoeman’s The Law of Property
[1]
)
.
The various shares need not be equal (although, in the present
matter, they are).
6.
Every
co-owner is entitled to use the joint property reasonably and in
proportion to his or her share, and is entitled to his or
her share
of the profits derived from the property, such as rental received in
respect of it. Each co-owner is obliged to
account to the
other, and bears the onus of proving that he or she is released from
the duty to account (see
Pretorius
v Botha
[2]
)
.
7.
As a general rule, each co-owner is entitled
to have co-ownership
terminated with the
actio
communi dividundo.
No
co-owner is obliged to remain such against his or her will (see
Robson v Theron
[3]
).
A party claiming the termination of co-ownership must allege and
prove the following:
7.1
The existence of joint ownership.
7.2
A refusal by the other co-owner to agree to a termination of the
joint ownership, an inability to agree on the method of termination,
or an agreement to terminate but a refusal to comply with
the terms
of the agreement.
7.3
Facts upon which the court can exercise its discretion as to how
to
terminate the joint ownership. Generally, the court will follow
a method that is fair and equitable to all of the parties
(
Pretorius
v Botha
[4]
)
taking into account the particular circumstances of the matter, what
is most advantageous to the parties, and what they prefer
(
Robson
v Theron
[5]
).
8.
According to Silberberg and Schoeman
[6]
“
there are certain
indications that a court may postpone a partition if it is
uneconomical or otherwise detrimental to the interests
of the
co-owners as a whole, but all such remarks are only
obiter
dicta
and it remains to be
seen whether a court will in fact refuse, at least for the time
being, a co-owner’s demand for partition.
For, if the
co-owners cannot agree on the manner in which the property is to be
divided among them, the court will make such order
as appears to be
fair and equitable in the circumstances.
”
.
9.
In
Robson v Theron supra
it was held at 857C-D that
the
action may also be used to claim as ancillary relief payment in
respect of the fulfilment of personal obligations relating to
profits
enjoyed or expenses incurred in connection with the joint property.
A court has a wide equitable discretion in making
a division of joint property.
10.
How then should the Court exercise its discretion in the present
case?
The
parties’ contentions as regards their respective contributions
11.
The first respondent explains, by way of
background, that he had initially wished to purchase the property in
his own name.
It was on the market for R180 000,00. He
did not however qualify on his own for a mortgage bond in that
amount. He
and the applicant thus agreed that they would
purchase the property jointly, but that the first respondent would be
liable to pay
the bond payments in respect thereof.
12.
It was further agreed informally between the
parties that the property would on their death (or on the first
respondent’s
death – there is a dispute between the
parties in this respect) be bequeathed to their children. The
agreement was
never formalised and any intention to be bound thereby
appears to have been abandoned by both parties. The children are
currently
18 and 20 years old, respectively. They do not lay
claim to the property.
13.
As previously mentioned the property served as the
family home and the applicant moved out upon the parties’
divorce in 2015.
The applicant explains that she is currently
residing at her parents’ property. She has not been able to
purchase another
property as she does not qualify for a mortgage bond
because she is still a registered co-owner of the parties’
property
and liable for the bond registered over the property.
14.
In 2016, the applicant was informed by a neighbour
that the property was for sale. Nothing came thereof, and the
first respondent
denies that the property was ever for sale.
15.
In May 2022 the applicant’s attorney sent a
letter to the first respondent, indicating that the applicant did not
wish to
remain co-owner of the property. It was suggested that
the property be sold on the open market and the proceeds divided
between
the parties in equal shares. As an alternative, the
first respondent was invited to purchase the applicant’s
undivided
half-share of the property. The letter was served by
the Sheriff on the first respondent personally, but no response was
received thereto.
16.
This application was instituted as a result of the
first respondent’s failure to respond to the applicant’s
suggestions.
17.
A dispute of fact has arisen on the papers as
regards the parties’ respective financial contributions towards
the property
over the years.
18.
The first respondent contends in his answering
affidavit that, as he paid for all expenses in relation to the
immovable property,
the applicant should only be awarded 20% share in
the immovable property as he “feels” that it would be
unfair to allocate
more to her.
19.
This, he submits, is because he continued to
support the family, paid the mortgage bond and school fees, “
and
so on
”
. The applicant would
“
occasionally
”
use her money towards purchasing some food and
clothing for the minor children. Most of her income was used to
purchase personal
items for herself. The first respondent says that
none of the applicant’s income was used towards the upkeep and
maintenance
of the immovable property.
20.
When the applicant vacated the property in 2005,
the first respondent continued to pay for all of the expenses in
relation to the
upkeep and maintenance of the property. He also
continued paying the bond, rates and taxes, electricity and so
forth.
The first respondent alleges that he has spent
R77 400-00 on improvements to the property since 2006. He did
maintenance work
on the property every few months since 2007, at his
cost. The work included painting the walls, fixing doors, the
installation
of new windows, fixing wall cracks, attending to
plumbing, the replacement of geysers and other appliances, and so
forth. This
retained the value of the property. He also
attached an invoice dated 13 October 2013 in the sum of R57 000-00
for the
installation of doors and gates, and paving done at, which,
so he says, the applicant did not contribute towards.
21.
The applicant contends that the first respondent’s
argument ignores not only her own financial contributions to their
erstwhile
common household and to the property, but also the
contributions that the applicant made during the course of a
fourteen-year marriage
as a homemaker, wife and mother. The
applicant points out that she not only made financial contributions
in respect of the
immovable property and the household, but she
contributed on a more personal and emotional level by fulfilling her
role as a mother
to the parties’ children and spouse to the
first respondent.
22.
Those contributions enabled the parties to obtain
a mortgage bond in respect of the immovable property and allowed the
first respondent
to work full-time and earn a salary so as to pay the
mortgage bond instalments in respect of the immovable property.
23.
According to the applicant it is not correct that
the first respondent paid for all expenses in respect of the
property. She indicates
that, in addition to various other financial
contributions that she made to the parties’ household, she also
on occasion
paid for water, electricity, rates and taxes. She
obtained part-time employment during the course of the parties’
marriage
to ensure that she would be available to see to the
children’s needs, both personal and scholastic. Had it not been
for this,
she would have secured full-time employment, earning a more
substantial salary.
24.
She managed the household on her own. Apart
from the monthly mortgage bond instalments pertaining to the
immovable property
paid by the first respondent, the applicant paid
for items such as the school fees of the parties’ one daughter,
as well
as groceries, medical expenses and clothing for the children
and herself. If she did not have sufficient funds to meet these
expenses,
she relied on her parents for financial assistance.
Evaluation
25.
I do not think that
the dispute about who paid for what in the course of the marriage is
fatal to the applicant’s case.
This matter is one that
can be determined on the papers. Accepting the first respondent’s
version
[7]
,
it is clear that, by the first respondent’s own acknowledgment,
the applicant contributed financially (albeit in a lesser
way than
the first respondent) and otherwise to the common household.
26.
The Supreme Court
of Appeal has stated in
Bezuidenhout
v Bezuidenhout
,
[8]
in the context of a
redistribution order in terms of section 7(3) of the Divorce 70 of
1979, that the traditional role of a housewife,
mother and homemaker
should not be under-valued because it is not measurable in terms of
money.
[9]
27.
The first respondent states that it cannot be
argued that, because he is a male, he did not contribute emotionally
in other respects
towards the rearing and parenting of the children.
Many mothers and fathers work part-time and full-time and contribute
just as
much towards the upkeep of the home and the rearing of the
children as the other parents. There is nothing on the papers to
suggest
that the first respondent did not assist the children with
their homework and extramural activities, staying up late nights for
them, caring for and guiding them “
just
as much or more
”
than the
applicant. As any devoted husband, the first respondent also
would have provided an emotional and parental contribution
toward the
applicant and their children in his role as father and husband.
28.
I have no doubt that that was the case, and I do
not regard the papers as downplaying the first respondent’s
role as husband
and father. His contribution in this respect is, of
course, also not measurable in money.
29.
It has to be borne in mind that the joint
ownership of the property in this matter does not stem from a
commercial transaction,
where the transaction can be unravelled with
mathematical precision with reference to the financial input of each
co-owner.
The property in the present matter was purchased and
owned by the parties in the course of a marriage relationship.
The point
of departure was that both parties would not only make
financial contributions to their joint household and expenses, but
would
also provide a nurturing environment for the well-being of
their marriage and their children.
30.
That the value of each party’s share of the
proceeds cannot be unravelled as in the case of a commercial
transaction is borne
out by the fact that the first respondent is
unable to explain how he arrived at his 20% allocation. He has
not delivered
a counter-application and has given scant (if any)
proof in support of his calculations regarding improvements done over
the years.
It is virtually impossible to quantify each party’s
combined financial and emotional contributions to the household in
the
circumstances of a marital relationship that lasted fourteen
years, especially in the absence of detailed and sufficient evidence
in that respect.
31.
The fact that the
first respondent made improvements to the property since the parties’
divorce does not, in my view, entitle
him to a greater share of the
proceeds. He alleges that the applicant did not contribute to those
improvements – but that
is because the applicant never knew
that the improvements had been done. There is no evidence on
record to the effect that
the first respondent informed the applicant
of his intention to do renovations or improvements, such as co-owners
are generally
obliged to do prior to effecting changes to the
property (see, for example,
Erasmus
v Afrikander Proprietary Mines Ltd
[10]
).
The applicant did not have any knowledge of improvements done at the
property prior to the delivery of the answering affidavit.
32.
The same applies to the payment of the bond, rates
and service charges. The first respondent has had the exclusive
use and
benefit of the property since December 2015, and was the
consumer in relation to the use of the property and the municipal
services
rendered thereat. The applicant had to obtain alternative
accommodation. The applicant highlights that she is currently in a
position
where she is the owner of a half share in an immovable
property which she cannot use or benefit from, whilst the owner of
the other
half of the immovable property has all the benefit.
The first respondent never paid or tendered any form of rental to the
applicant.
Conclusion
33.
On consideration of the matter as a whole, I am of
the view that the most equitable outcome in the particular
circumstances is that
the net proceeds of the sale of the property be
shared by the parties on an equal basis.
Costs
34.
As a general rule, the party who succeeds should
be awarded costs. The applicant’s counsel argued that, in any
event, the
first respondent should pay the costs because of his
failure to attempt a settlement of the matter prior to the
institution of
the application.
35.
The present matter is, however, despite the
parties’ divorce, akin to a matrimonial dispute that had not
previously been determined.
In the circumstances I am of the
view that each party should pay their own costs.
Order
36.
In the premises, it is ordered as follows:
36.1
The parties’ co-ownership of the immovable property known as
Erf [...] M[...] P[...],
situated at C[…] C[…], W[…],
M[...] P[...], (“the property”) is terminated.
36.2
The property shall be offered for sale on the open market within one
month of the date
of this order, at its current reasonable market
value, and both the applicant and the first respondent shall be
entitled to market
the property.
36.3
In the event that the property is not sold within 4 (four) months of
the date of this order,
the property shall be sold by public auction
to the highest bidder.
36.4
The first respondent shall co-operate in the sale of the property as
described in this
order, including, but not limited to, providing
access to the property at all reasonable times to estate agents and
prospective
purchasers for viewing purposes.
36.5
The parties shall sign all such documentation and
take all steps as required in order to conclude the sale agreement
and to effect
transfer of their undivided shares of the property into
the purchaser’s name. In the event that any of the parties fail
to
sign such documentation upon request, the Sheriff of the High
Court in whose jurisdictional are the property is situated shall be
entitled to sign such documentation or take such steps on such
parties’ behalf.
36.6
The parties shall be entitled to payment of the
net proceeds from the sale of the property in equal shares upon
registration of
transfer into the name of the purchaser.
36.7
The net proceeds of the sale of the property shall
be the selling price of the property, less the total of the following
expenses
if incurred, namely:
36.7.1
the commission due to the estate agent who was the
effective cause of the sale, alternatively, should the property be
sold on public
auction, the auction fees payable in respect of the
sale;
36.7.2
the costs of obtaining an entomologist’s and
electrician’s certificate;
36.7.3
the cost of obtaining a plumbing certificate;
36.7.4
the costs of obtaining a rates clearance
certificate;
36.7.5
any other costs necessary in order successfully to
conclude the sale of the property.
36.8
The applicant may appoint the conveyancer who
shall give effect to the transfer of the property.
36.9
Each party shall pay his or her own costs of the application.
P.
S. VAN ZYL
Acting judge of the High Court
Appearances
:
For
the applicant
:
R.
Steyn,
Instructed
by
Bellingan
Muller Hanekom Inc.
For
the first respondent
:
M.
Abduroaf,
Instructed
by
Aniel
Jeaven Attorneys
[1]
5ed,
LexisNexis, at pp 133-136.
[2]
1961 (4) SA
722
(T) at 724F.
[3]
1978 (1) SA
841
(A) at 854G-857E.
[4]
Supra
at 726D-E.
[5]
S
upra
at 855C-E.
[6]
At
p35.
[7]
On
the basis of
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984
(3) SA 623
(A) at 634-635
.
[8]
2005
(2) SA 197 (SCA).
[9]
At
para [28].
[10]
1976
(1) SA 950
(W) at 960C-E.
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