M v M (332/2015) [2017] ZASCA 5; [2017] 2 All SA 364 (SCA); 2017 (3) SA 371 (SCA) (9 March 2017)

M v M (332/2015) [2017] ZASCA 5; [2017] 2 All SA 364 (SCA); 2017 (3) SA 371 (SCA) (9 March 2017)

The court found that the appellant's extramarital affair was the cause of the divorce, triggering the property provision in the antenuptial contract. Assets in the Shajo Trust and Capmark Business Trust were not excluded from accrual by the contract, but the respondent failed to prove that the trusts were used fraudulently or dishonestly to defeat her accrual claim. The evidence did not establish that the appellant transferred personal assets to the trusts with the intent to evade his obligations. The transfer of the Milcar interest was not proven to be fraudulent. Contributions made to the RMF Trust after marriage, including growth, were subject to the accrual system. The respondent was...

Citation
[2017] ZASCA 5
Parties
Appellant: REM; Respondent: VM
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
9 March 2017
Case Number
332/2015
Procedural Posture
Civil Appeal / Appeal From Gauteng Division of the High Court, Pretoria
Outcome
Appeal upheld in part; order of the court a quo substituted to reflect recalculated accrual amount due to respondent.
Judges
Shongwe, Swain, Mathopo, Mocumie, Dlodlo
Legal Topics
Accrual System, Antenuptial Contract, Trust Property Control Act, Piercing Trust Veil, Division of Assets on Divorce, Interpretation of Contracts
Family and Children Civil Procedure Accrual System Antenuptial Contract Trust Property Control Act Piercing Trust Veil Division of Assets on Divorce Interpretation of Contracts

Case Brief

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Parties

REM

Appellant

VM

Respondent

Procedural Posture

Civil Appeal / Appeal From Gauteng Division of the High Court, Pretoria

Legal Issues

  1. 1 Whether the appellant's extramarital affair was the cause of the divorce, triggering the property provision in the antenuptial contract.
  2. 2 Whether assets held in the Shajo Trust and Capmark Business Trust are excluded from the accrual system under the antenuptial contract.
  3. 3 Whether the trusts in question are the alter ego of the appellant and their assets should be included in the accrual calculation.

Ratio Decidendi

The court found that the appellant's extramarital affair was the cause of the divorce, triggering the property provision in the antenuptial contract. Assets in the Shajo Trust and Capmark Business Trust were not excluded from accrual by the contract, but the respondent failed to prove that the trusts were used fraudulently or dishonestly to defeat her accrual claim. The evidence did not establish that the appellant transferred personal assets to the trusts with the intent to evade his obligations. The transfer of the Milcar interest was not proven to be fraudulent. Contributions made to the RMF Trust after marriage, including growth, were subject to the accrual system. The respondent was...

Court Disposition

Appeal upheld in part; order of the court a quo substituted to reflect recalculated accrual amount due to respondent.

Orders

  • Paragraph 2 of the order of the court a quo is set aside and substituted with: 'The first defendant is to pay to the plaintiff the sum of R2 669 822.78'.
  • The respondent is ordered to pay the appellant’s costs of the appeal.