B F v R F (2017/5018A) [2018] ZAGPJHC 699; 2019 (4) SA 145 (GJ) (2 July 2018)

B F v R F (2017/5018A) [2018] ZAGPJHC 699; 2019 (4) SA 145 (GJ) (2 July 2018)

The majority held that clause 4 of the ante-nuptial contract, properly interpreted in light of section 4(1)(b)(ii) of the Matrimonial Property Act, excludes only those assets possessed by the husband at the commencement of the marriage. The text and structure of the clause, as well as the statutory scheme, do not permit the exclusion of assets acquired after marriage unless they are the fruits of the initial excluded assets and this is specifically alleged and proved. The majority found that the additional shares and increased loan account balances acquired during the marriage are subject to accrual sharing. The minority (Siwendu J) dissented, finding that the evidence was insufficient to...

Citation
[2018] ZAGPJHC 699
Parties
Appellant: F B; Respondent: F, R
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
2 July 2018
Case Number
2017/5018A
Procedural Posture
Civil Appeal / Appeal From Trial Court on Separated Issue Regarding Interpretation of Ante Nuptial Contract
Outcome
Appeal upheld by majority; declaration made that only assets possessed at commencement of marriage are excluded from accrual. Minority would have dismissed the appeal and referred the matter back for determination on full facts.
Judges
Sutherland, Matojane, Siwendu
Legal Topics
Matrimonial Property Act, Accrual System, Ante Nuptial Contract Interpretation, Excluded Assets, Contractual Intention

Case Brief

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Parties

F B

Appellant

F, R

Respondent

Procedural Posture

Civil Appeal / Appeal From Trial Court on Separated Issue Regarding Interpretation of Ante Nuptial Contract

  1. 1 Whether clause 4 of the ante-nuptial contract excludes only the assets held by the husband at the commencement of the marriage or also assets acquired after marriage.
  2. 2 Whether the exclusion of future-acquired assets is permissible under section 4(1)(b)(ii) of the Matrimonial Property Act.
  3. 3 Whether the additional shares and increased loan account balances acquired during the marriage are subject to accrual sharing.

Ratio Decidendi

The majority held that clause 4 of the ante-nuptial contract, properly interpreted in light of section 4(1)(b)(ii) of the Matrimonial Property Act, excludes only those assets possessed by the husband at the commencement of the marriage. The text and structure of the clause, as well as the statutory scheme, do not permit the exclusion of assets acquired after marriage unless they are the fruits of the initial excluded assets and this is specifically alleged and proved. The majority found that the additional shares and increased loan account balances acquired during the marriage are subject to accrual sharing. The minority (Siwendu J) dissented, finding that the evidence was insufficient to...

Court Disposition

Appeal upheld by majority; declaration made that only assets possessed at commencement of marriage are excluded from accrual. Minority would have dismissed the appeal and referred the matter back for determination on full facts.

Orders

  • The appeal is upheld with costs, including costs of two counsel.
  • The difference in the issued share capital now owned by the plaintiff in Rand Building Hydraulics (Pty) Ltd and National Reinvestments (Pty) Ltd and that which was owned by him at the date of the marriage, and the difference between the credit balances now due to the plaintiff under the loan accounts in those...