A.C.K v F.K (768/2018) [2021] ZAFSHC 299 (9 November 2021)
- Citation
- [2021] ZAFSHC 299
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Free State High Court, Bloemfontein
- Panel
- MOLITSOANE
- Case number
- 768/2018
More details
- Court
- Free State High Court, Bloemfontein
- Panel
- MOLITSOANE
- Case number
- 768/2018
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the interpretation of the divorce judgment by Murray, AJ suggested that the payment of 50% of the respondent's pension interest to the applicant was considered in calculating maintenance, not as an asset for accrual. Raikane, AJ's contrary finding was questioned, and the court held that there are reasonable prospects that another court may interpret the judgment differently. Therefore, leave to appeal was granted to allow the Full Court to reconsider whether the pension interest should be treated as an asset in the accrual calculation or as maintenance.
Court disposition
Leave to appeal granted to the Full Court of the Free State Division; costs to be costs in the appeal.
Orders
- The applicant is granted condonation to supplement her notice for application of leave to appeal.
- The application for leave to appeal is granted to the Full Court of this Division.
- The costs of this application shall be costs in the appeal.
02
Material facts
Parties
A.C.K
Applicant Counsel: Adv. SJ ReindersF.K
Respondent Counsel: Adv. S TsangarakisAmounts and remedies
- Amount Ordered to Be Paid to Respondent (original Judgment): ZAR 417,000
- Eskom Pension Fund Interest (disputed Asset): ZAR 1,944,036.36
- Rehabilitative Maintenance Per Month (divorce Order): ZAR 7,500
03
Procedural history
Posture
Leave to Appeal / Application for Leave to Appeal to the Full Court Following a Judgment Ordering Payment of Accrual.
04
Questions and positions
Legal issues
- 01
Whether 50% of the Eskom Pension Fund paid to the applicant should be considered an asset in the computation of the parties' estates for accrual purposes.
- 02
Whether the pension interest paid to the applicant forms part of maintenance or accrual.
- 03
Whether there are reasonable prospects that another court may reach a different conclusion regarding the interpretation of the divorce judgment.
Party arguments
- Applicant
- The applicant contends that the amount of R1,944,036.36 paid from the Eskom Pension Fund was for maintenance and should not be included as an asset in the accrual calculation. She relies on the divorce judgment, arguing that the payment was considered in determining maintenance, not accrual, and that maintenance and accrual are distinct legal concepts.
- Respondent
- The respondent argues that the R1,944,036.36, representing 50% of the Eskom Pension Fund interest, was transferred to the applicant as an asset and must be included in the accrual calculation. He maintains that the pension interest is part of the applicant's estate and should be considered when determining accrual.
05
Court’s reasoning
Legal principles
- 01
Matrimonial Property Act, 88 of 1984
A claim for accrual only arises upon dissolution of the marriage, and maintenance is awarded separately; maintenance should not form part of the accrual calculation.
- 02
Shawn Marx v Cornelia Marx, Case No: 83074/2014 Gauteng Division, Pretoria delivered on 18 December 2019
Accrual is a claim between spouses upon dissolution of marriage subject to the accrual system, while maintenance is determined by agreement or court discretion; treating maintenance as an asset in accrual leads to unjust results.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the interpretation of the divorce judgment by Murray, AJ suggested that the payment of 50% of the respondent's pension interest to the applicant was considered in calculating maintenance, not as an asset for accrual. Raikane, AJ's contrary finding was questioned, and the court held that there are reasonable prospects that another court may interpret the judgment differently. Therefore, leave to appeal was granted to allow the Full Court to reconsider whether the pension interest should be treated as an asset in the accrual calculation or as maintenance.
Obiter and limits
- Accrual and maintenance are distinct legal concepts and must be treated separately in divorce proceedings.
- Including maintenance payments as assets in accrual calculations may result in unjust outcomes contrary to legislative intent.
Court disposition
Leave to appeal granted to the Full Court of the Free State Division; costs to be costs in the appeal.
- The applicant is granted condonation to supplement her notice for application of leave to appeal.
- The application for leave to appeal is granted to the Full Court of this Division.
- The costs of this application shall be costs in the appeal.
Source and reliance status
Free State High Court, Bloemfontein
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Judgment reading view
Judgment text
The complete available source text.
Free State High Court, Bloemfontein
Judgment
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
FREE STATE DIVISION, BLOEMFONTEIN
Case No: 768/2018
In the matter between:
A[â¦.] C[â¦.] K[â¦.] Applicant/ Defendant
and
F[â¦.] K[â¦.] Respondent/Plaintiff
JUDGMENT BY: MOLITSOANE,
J
HEARD ON:
5 NOVEMBER 2021
DELIVERED ON: 9 NOVEMBER 2021
[1] The applicant seeks leave to appeal to the Full Court of this Division the whole of the judgment of Raikane, AJ delivered on 10 December 2020, in terms of which the applicant was ordered to pay the amount of R417 000.00 to the respondent together with interest and costs. For convenience I shall refer to the parties as applicant and respondent even where I make reference to them in the initial action before Murray, AJ.
[2] As a preliminary issue the applicant seeks condonation to supplement her notice of application for leave to appeal by expanding the grounds of appeal as more fully set out in the Amended Notice of Application of leave to Appeal. The condonation application is not opposed. I granted this application.
[3] The test for granting of an application for leave to appeal is settled. The parties were married out of community of property with accrual. On 23 July 2015 Murray, AJ dissolved their marriage and further granted, inter alia, the following orders:
a) That the respondent pays rehabilitative maintenance in the amount of R7 500 to the applicant for 5 years;
b) That the applicant is entitled to share in the accrual in accordance with the provisions of the Matrimonial Property Act, 88 of 1984, the amount to be determined as on the date of the divorce by agreement between the parties within the stipulated time failing which the parties were granted leave to approach the court further for the appointment of a receiver with the necessary powers to determine the accrual;
c) That the applicant is entitled to 50% of the respondentâs pension interest as on the date of divorce.
[4] Subsequent to this order of divorce, the respondent instituted an action (Case 768/2018) in this court against the applicant alleging that her estate showed bigger accrual than the one of his, thus entitling him to sharing therein. The matter was heard by Raikane AJ. The only issue the court was obliged to adjudicate and pronounce on, as agreed between the parties was:
a) Whether or not 50% of the Eskom Pension Fund, in the amount of R1 944 036.36 ought to be considered as an asset of the applicant in the computation of the partiesâ estates;
b) If the answer to the above question was in the positive, then in that case the parties agreed that the respondentâs claim must succeed and he is entitled to an amount of R417 000.00 plus interest thereon a tempore morae as from the date of judgment and costs of suite;
c) Conversely, and if the answer in (a) above is in the negative, then in that event the parties are agreed that the applicantâs claim must be dismissed with costs.
[5] The essence of the applicantâs case is that the amount of R1 944 036.36 was paid by the Eskom Pension Fund as part of the maintenance and should therefore not be taken into account as part of the respondentâs claim for accrual. For this contention the applicant relied heavily on paragraph 14 of the judgment of Murray, AJ in which the court stated that it considers thus the applicantâs maintenance claim on the basis of the factors listed in s7(2), taking into account her right to share in the net accrual in the estate of the respondent.
[6] On the other hand the respondent contends that the said amount of R1 944 036.36, being 50% of the Eskom Pension Fund interest, paid by the said Fund to the applicant in terms of clause 9 of the judgment of Murray AJ should be taken into account in calculating his accrual claim. Simply put I understand this contention to mean that the above-mentioned pension interest is an asset in the estate of the applicant and ought to be taken into account in the calculation of the accrual.
[7] Raikane, AJ as indicated above found in favour of the respondent and held as follows:
â[12] I find nothing in the interpretation of the judgment [of Murray AJ] that could be read to say that the anticipated amount was meant to be utilised by the Defendant for her maintenance other than as an asset that was transferred to her estate and stand to be utilised in the mathematical calculation of the accrual.â (my emphasis)
[8] The adjudication of the dispute between the parties in the matter before Raikane, AJ was largely dependent on the interpretation of the judgment of Murray AJ to which no appeal lies. At the onset it is necessary to note that in terms of sections 3(1) and (2) of the Matrimonial Property Act, it is only upon the dissolution of the marriage subject to accrual that a spouse acquires a claim against the other spouse or the estate. A claim thus only arises at the dissolution of the marriage. Maintenance is usually awarded separately and it is thus difficult to see how it can form part of a claim for accrual.
[9] The accrual and maintenance are separate legal concepts and ought to be treated differently. The court in Shawn Marx v Cornelia Marx said:[1]
âAccrual is a claim between spouses upon dissolution of the marriage, subject to the accrual system and maintenance is either a by agreement between the parties or otherwise determinable within the courtâs discretion. If the maintenance payable by the plaintiff to the defendant formed a liability in the estate of the plaintiff for purposes of calculating and computing the accrual in his estate, it will lead to an unjust result. This could not have been the intention of the legislature. If the maintenance payable is an asset in the estate of the defendant, for purposes of calculating and computing any accrual in her estate, this leads to an even worse result.â
[10] In my view, critical reading of the judgment of Murray, AJ appears to lead one to infer that she was of the view that the payment of the 50% of the respondentâs pension interest to the applicant was a factor to be taken into account in calculating the maintenance payable to the applicant. The applicant initially applied for life-long maintenance in the divorce action but the court, however, awarded her maintenance as alluded to above. It appears that she did not take the said pension interest as an asset of the applicant in the calculation of the accrual. This is contrary to the finding by Raikane, AJ. For this reason, I am of the view that there are reasonable prospects that another court might come to a different conclusion in the interpretation of the judgment of Murray, AJ. In the premises I make the following order:
ORDER
1. The applicant is granted condonation to supplement her notice for application of leave to appeal;
2. The application for leave to appeal is granted to the Full Court of this Division;
3. The costs of this application shall be costs in the appeal.
P.E. MOLITSOANE, J
On behalf of the Applicant: Adv. SJ Reinders
Adv. WJ Groenewald
Instructed by: Symington and De Kok
BLOEMFONTEIN
On behalf of the Respondent: Adv. S Tsangarakis
Instructed by: Hill Mc Hardy and Herbst
[1] Case No: 83074/2014 Gauteng Division, Pretoria delivered on 18 December 2019.
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