D.J.K v D.C.J.K (57991/2007) [2010] ZAGPPHC 621 (10 March 2010)

80 Reportability

Brief Summary

Divorce — Redistribution of assets — Counterclaim for maintenance and redistribution order — Defendant sought a redistribution order under Section 7(3) of the Divorce Act 70 of 1979, asserting contributions to the Plaintiff's estate — Court found that the Defendant contributed to the maintenance and increase of the Plaintiff's estate during the marriage — Decree of divorce granted; house to be sold with Defendant entitled to 30% of net proceeds — No maintenance order made for either party.

Comprehensive Summary

Summary of Judgment


1. Introduction


The matter was a divorce action in the North Gauteng High Court, Pretoria. The litigation concerned patrimonial consequences of divorce in the context of a marriage out of community of property, with the principal dispute focusing on whether the defendant (wife) was entitled to a redistribution order in terms of section 7(3) of the Divorce Act 70 of 1979, and whether she was entitled to spousal maintenance under section 7(2).


The parties were D[...] J[...] K[...] (plaintiff) and D[...] C[...] J[...] K[...] (defendant). The plaintiff pursued the divorce, while the defendant delivered a counterclaim seeking redistribution and maintenance-related relief, including an amount allegedly contributed by her towards the maintenance of the parties’ child for a defined period.


At the commencement of trial, the court ruled that the duty to begin rested on the defendant, who then led evidence in support of her counterclaim. The subject-matter of the dispute was thus the appropriate equitable redistribution of assets (particularly the immovable property registered in the plaintiff’s name) and the appropriateness of maintenance orders between spouses and in relation to past contributions toward the child’s upkeep.


2. Material Facts


It was common cause that the parties were married on 1 October 1983 and that the marriage was out of community of property. Both parties were employed at the South African Railways and Harbours at the time of marriage. It was further common cause that an immovable property situated at 15 S[...] Avenue, W[...] R[...], Boksburg was purchased after the marriage pursuant to a home loan applied for by the plaintiff, and that the property was registered in the plaintiff’s name. The parties moved into the property on 1 August 1984.


The defendant’s evidence, accepted to the extent reflected in the judgment, was that renovations and improvements (including to the kitchen) were undertaken and financed by additional loans obtained by the plaintiff, and that the defendant also contributed toward these renovations. A child, D[...] K[...] K[...], was born of the marriage. The plaintiff left the common home on 6 May 1993. The defendant conceded that the plaintiff continued to service the bond instalments and maintained the defendant and child as dependants on his medical aid scheme. The plaintiff paid R400 per month toward the child’s maintenance without fail until 1999, and later stopped paying maintenance from 2004.


A schedule of expenses was produced by the defendant relating to expenditure on the minor child and the “common home”. The plaintiff accepted the schedule and annexures as proof of the expenses incurred, with a recorded figure of R379 170.50. The schedule included items described as improvements and maintenance to the home, including (as listed in the judgment) a Wendy house, tiles in the passage, carpets, internal and external painting, roof fans, fascia boards, and replacement of a burst geyser.


Regarding the parties’ means, the judgment recorded that the plaintiff had limited income of R2 000.00, notwithstanding that he had received a severance package of approximately R995 000.00 in 2006. The defendant was employed and earned a net salary of R7 400.00. It was also placed before the court in argument that the defendant was expected to receive pension benefits approximated at R1 050 000.00 in about ten years.


It was undisputed that the plaintiff continued paying the bond until 2009, and it was also undisputed that the defendant maintained the house in a manner that increased its value. The judgment further recorded, as part of the overall circumstances, that the plaintiff had engaged in an adulterous relationship with Ms V[...].


3. Legal Issues


The central legal question was whether, on the facts accepted by the court, the defendant had shown entitlement to a redistribution order under section 7(3) read with sections 7(4) and 7(5) of the Divorce Act 70 of 1979, specifically whether she had contributed directly or indirectly to the maintenance or increase of the plaintiff’s estate during the marriage and whether a redistribution order would be equitable and just.


A further issue was whether either party should receive spousal maintenance under section 7(2) of the Divorce Act, given the parties’ respective means and circumstances as presented.


In addition, the defendant sought an amount allegedly contributed by her toward the child’s maintenance for a specified period. This raised a question about the appropriate treatment of maintenance in respect of a now-major child who was not a party to the proceedings.


The dispute therefore involved the application of statutory discretion to largely common-cause or accepted factual material, and an evaluative determination of what was fair and equitable in the redistribution context, rather than resolution of sharply contested primary facts.


4. Court’s Reasoning


The court approached the redistribution claim through the framework of sections 7(3), 7(4), and 7(5) of the Divorce Act 70 of 1979. It treated the relevant inquiry as a discretionary one: an order may be granted if the court is satisfied it is equitable and just because the party in whose favour the order is granted contributed directly or indirectly to the maintenance or increase of the other party’s estate, whether through services rendered, saving of expenses, or otherwise.


In addressing the nature of “contribution”, the court referred to Beaumont v Beaumont 1987 (1) SA 967 (A) as authority explaining the mischief at which the redistribution provisions were aimed, namely the inequity that could result where the law failed to recognise a spouse’s right to claim adjustment of asset disparity that was inconsistent with their contributions during marriage. The judgment also reflected that both counsel relied on Beaumont, with emphasis placed on contribution as the primary focus and on the notion that the assessment is not necessarily an exercise of counting exact monetary equivalents.


Applying those principles, the court treated the plaintiff’s acceptance of the defendant’s expense schedule as significant. In the court’s view, that acceptance made it clear that the defendant had contributed directly to the maintenance of and increase in value of the property, which formed part of the plaintiff’s estate. The court also took into account that the plaintiff consistently paid the bond, while the defendant maintained the home in a manner that increased its value. In line with Beaumont, the court indicated that the exercise was to examine all the circumstances and attempt to achieve a fair and equitable redistribution, rather than to perform a strict accounting.


The court then evaluated the statutory factors in section 7(5), including the parties’ existing means and obligations, and other relevant considerations. The plaintiff’s limited current income was weighed alongside the fact of his severance package in 2006. The defendant’s present earnings and the submission regarding her prospective pension benefits were also recorded as part of the comparative means and future prospects. The court further referenced the plaintiff’s adulterous relationship as part of the circumstances it considered.


On maintenance, the court concluded that the parties’ current positions did not justify an order that either should maintain the other. In relation to the child, the court noted that the child was now over 18, earning, and not a party to the proceedings; it stated that the child could institute action against both parents if maintenance were needed. This was treated as a basis not to make maintenance-related orders in the divorce proceedings in respect of the adult child.


5. Outcome and Relief


The court granted a decree of divorce. It ordered that the immovable property at 15 S[...] Avenue, W[...] R[...], Boksburg be sold, and that the defendant be paid 30% of the net proceeds of the sale. The court made no order as to costs.


The court refused to grant spousal maintenance to either party.


Cases Cited


Beaumont v Beaumont 1987 (1) SA 967 (A)


Legislation Cited


Divorce Act 70 of 1979, section 7(2)


Divorce Act 70 of 1979, section 7(3)


Divorce Act 70 of 1979, section 7(4)


Divorce Act 70 of 1979, section 7(5)


Divorce Act 70 of 1979, section 9


Black Administration Act 38 of 1927, section 22(7)


Rules of Court Cited


No rules of court were cited in the judgment.


Held


The court held that, in light of the accepted evidence and the plaintiff’s acceptance of the defendant’s schedule of expenditure, the defendant had made a sufficient direct contribution to the maintenance and increase in value of the plaintiff’s estate, particularly in relation to the immovable property registered in the plaintiff’s name. Having considered the circumstances and the statutory factors relevant to redistribution, the court exercised its discretion to award the defendant a 30% share of the net proceeds of the sale of the property.


The court held that the parties’ circumstances did not warrant an order of spousal maintenance in favour of either party. It further treated any maintenance needs of the now-major child as a matter for the child to pursue, if necessary, in separate proceedings.


LEGAL PRINCIPLES


The judgment applied the principle that a redistribution order under section 7(3) of the Divorce Act 70 of 1979 is discretionary and may be granted only where the court is satisfied, in terms of section 7(4), that it is equitable and just by reason of the claimant spouse’s direct or indirect contribution to the maintenance or increase of the other spouse’s estate during the marriage, including through services rendered or saving of expenses.


It further applied the approach, drawn from Beaumont v Beaumont 1987 (1) SA 967 (A), that the redistribution inquiry is not confined to a strict monetary calculation; the court must evaluate the full circumstances and attempt to achieve a fair and equitable redistribution, taking into account the statutory considerations listed in section 7(5), including the parties’ means and other relevant factors.


The judgment also applied the principle that spousal maintenance under section 7(2) depends on the parties’ circumstances and that a court may refuse maintenance where the present positions of the parties do not justify such an order.

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[2010] ZAGPPHC 621
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D.J.K v D.C.J.K (57991/2007) [2010] ZAGPPHC 621 (10 March 2010)

SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
IN
THE
HIGH COURT OF SOUTH AFRICA
(NORTH GAUTENG
HIGH COURT, PRETORIA)
CASE NUMBER:
57991/2007
DATE: 10 MARCH
2010
In the matter
between:
D[...] J[...]
K[...]
…..........................................................................................................................
PLAINTIFF
And
D[...] C[...]
J[...]
K[...]
..................................................................................................................
DEFENDANT
JUDGMENT
PHATUDI J
[1] In this divorce
action, the Defendant prayed in her counterclaim for a redistribution
order in terms of Section 7(3) of
Divorce Act 70 of 1979
on the basis
that the Plaintiffs estate has been increased by

12.1
Die Verweerderes wat die Eiser by
tye
van klere, kos en nood-saaklike benodighede voorsien;
12.2
Die Verweerderes het by tye sekere uitgawes namens die Eiser
aangegaan...'(counterclaim)
[2] The Defendant
further pray for maintenance for herself in terms of
section 7(2)
of
the
Divorce Act 70 of 1979
and the amount allegedly contributed by
her toward D[...]’s(child born of the marriage) maintenance for
the period April
2005 up to April 2008.
[3] At the
commencement of the trial I found the duty to begin to befall on the
Defendant. She testified that she is married to
the defendant out of
community of property on 1 October 1983 which marriage still subsist.
The marriage certificate was handed
in and 1 marked it “X”.
She said that at the time of their marriage, both of them were
employed at the South African
Railways and Harbors. At that moment
the plaintiff had already applied for a home loan from their employer
which was only approved
after the marriage. The immovable properly
situated at 15 S[...] Avenue, W[...] R[...], Boksburg, was as a
consequent purchased
and registered in the Plaintiff s naino. They
then moved into the said property’ on 1 August 1984.
[4] She further
testified that various renovations, including the kitchen, were
effected to the said property financed by additional
loans obtained
by the Plaintiff. She, as well, contributed towards the said
renovations.
[5] D[...] K[...]
K[...] (D[...]), a girl, was born of the marriage on [...]. On 6 May
1993 the Plaintiff left the common home for
his “freedom”.
She helped him to pack his necessary necessities. She conceded that
the Plaintiff promptly serviced
the bond installment and kept both
the defendant and the minor child as dependants on his medical aid
scheme. The plaintiff further
paid an amount of R400.00 per month
towards maintenance of D[...] (then minor child) without fail up to
1999. He has since 2004
stopped paying the maintenance.
[6] The Plaintiff
accepted the Schedule and annexures as proof setting out the expense
incurred by the Defendant towards the maintenance
of the minor child
and the “common home’’. The figure of R379 170.50
is recorded as this amount so incurred as
such expenses. On perusal
of the Schedule, I noted that the Defendant incurred the expenses
termed

Verbetering
& instandhouding van woning”.
- Wendy house
- Teels in gang
Matte
-Binne en Buite verf
-Dakwaaiers
- Fascia Boards
- Gebarste geyser.'
[7]
Section 7(3)
of
the
Divorce Act 70 of 1979
provides that

A
court granting a degree of divorce may in accordance with a written
agreement between the parties make an order with regard to
the
division of the assets of the parties or the payment of maintenance
by the one party to the other.’
[8] Further thereto,
Section 7
(4) provides that:

an
order under subsection (3) shall not be granted unless the court is
satisfied that it is equitable and just by reason of the
fact that
the party in whose favour the order is granted, contributed directly
or indirectly to the maintenance or increase of
the estate of the
other party during the subsistence of the marriage, either by the
rendering of services, or the saving of expenses
which would
otherwise have been incurred, or in and other manner."
[9]
Ms De Klerk, counsel for the Plaintiff, submits by referring me to
BEAUMONT
V
BEAUMONT 1987(1)
SA
967
(A)
that:

What
the measure was designed to remedy is... the inequity which couid
flow from the failure of the Law to recognize 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.'
[10] She further
submits that the court held that "first and foremost is the
contribution by the one spouse to the estate of
the other, by which
is obvioush meant the nature and extent of the contribution."
[11]
Equally, on the other hand, Mr. Marx, counsel for the Defendant, also
refers me to
Beaumont’s
case
with emphasis on qualification of Defendant contribution to plaintiff
estate. He submits that there is no indication in the
Act nor in the
case law. that the coun counted Rands and cents.
[12]
Section 7(4)
of
Divorce Act provides
the court with the discretionary
power to grant an order ifSatisfied that it is equitable and just by
reason of the fact that the
party in whose favour the order is
granted, contributed directly or indirectly to the maintenance or
increase of the estate of
the other party..."
[13] Upon acceptance
by the Plaintiff the schedule of expenses handed in by the Defendant,
it is, in my view, clear that the Defendant
contributed directly to
the maintenance of and the increase of value to the property, being
the estate of the Plaintiff.
[14] In an attempt
to reach to a fair distribution of the asset, the court in Beaumont v
Beaumont added:

Rather
one must examine all the circumstances of the case and apply the
provisions of
Section 7(4)
and (5)... and then attempt to achieve a
fair and equitable re-distribution of assets'.
[15]
Section 7(5)
provides:

In
determination of the assets or pan of the assets to be transferred as
contemplated in subsection (3), the coun shall, apart from
any direct
or indirect contribution made by the party concerned to the
maintenance or increase of the estate of the other party
as
contemplated in subsection (4). also take into account-
(a) The existing
means and obligations of the parti's, including any obligation that a
husband to a marriage as contemplated in
subsection (3) (b) of this
section may have in terms of section 22(7) of the Black
Administration Act, 1927 (Act No 38 of 1927):
(b) any donation
made by one part} to the other during the subsistence of the
marriage, or which is owing and enforceable in terms
of the
antenuptial contract concerned:
(c) any order which
the court grants under section 9 of this Act or under any other law
which affects the patrimonial position of
the parties: and
(d) any other factor
which should in the opinion of the court be taken into account.'
[16] Currently the
Plaintiff has limited income of R2000.00 notwithstanding a severance
package of approximately R995 000.00 he
took in 2006. The Defendant
is employed and earns a nett salary of R7400.00.
[17] Counsel for the
Defendant submits that the Plaintiffs income will substantially
improve with time. On the other hand, counsel
for the Plaintiff
submit that the Defendant has a brighter future as she stand to
receive pension benefits approximated at R 1,050,
000.00 in 10 years
this year.
[18] It is
undisputed that the Plaintiff continued without fail to pay the bond
up to the year 2009. It is further undisputed that
the Defendant
maintained the house resulting in the value of the house being
increased.
[19] Considering all
these factors, including the adulterous relationship the Plaintiff
engaged with one Ms V[...], I am of the
view that the Defendant stand
to be awarded a certain percentage of the value of the house which is
the subject of this matter.
Both parties contributed immensely
towards the maintenance of D[...]. D[...] is now earning and above 18
years. She is not a party
to these proceedings and may institute
action against both her parents if she needs maintenance.
[20] Both parties'
current position does not warrant an order for maintenance of either
of them. I based on the above, make the
following order:
1. Decree of divorce
2. The House
situated at 15 S[...] Avenue, W[...] R[...]. Boksburg be sold.
3. The Defendant be
paid 30% of the nett proceeds from the sale of the house situated at
Boksburg.
4. No order as to
costs.
AML PHATUDI
JUDGE OF THE
NORTH GAUTENG HIGH COURT
Heard
on
:
3 March 2010
For
thePlaintiff
:
Adv M C de Klerk
Instructed
by Plaintiff:
Davel
De Klerk Kgatla Attorneys
For
the Defendant
:
Adv H E Marx
Instructed
by Defendant
:
Roets & Du Plessis Attorneys
Date
of Judgment
:
9 March 2010