Case name: EB (Born S) v ER (Born B) N.O. v and Others v KG v Minister of Home Affairs and Others
Citation: [2023] ZACC 32
Court: Constitutional Court of South Africa
Date of judgment: 10 October 2023
The Matrimonial Property Act was enacted on 1 November 1984 and established the accrual system. Accrual entitles spouses to share in the growth of their separate estates upon dissolution of the marriage.
Accrual is the default system for marriages out of the community of property entered into after 1 November 1984 unless it is expressly excluded by the parties in their antenuptial contract.
The Matrimonial Property Act also created a remedy called a “redistribution order” for marriages entered into before 1 November 1984.
This remedy was included in section 7(3) of the Divorce Act and allows a spouse in a divorce matter to apply to court for some of the other spouse’s assets to be transferred to them.
It is available for spouses married in terms of an antenuptial contract that excludes community of property, community of profit and loss and accrual sharing. Before the EB decision, this remedy was limited in two ways.
First, it only applied to marriages ending in divorce, not death.
Second, it only applied to marriages entered into before 1 November 1984.
The landmark case of EB challenged the constitutional validity of these two limitations.
This judgment dealt with two cases that challenged section 7(3) of the Divorce Act on different grounds.
The case of Mrs B concerns the absence of a redistribution order where the marriage is terminated by death rather than divorce.
The case of Mrs G concerns the absence of a redistribution remedy where the marriage is entered into on or after 1 November 1984.
The legal issue in this case centred around the constitutional validity of section 7(3) of the Divorce Act to the extent that it excludes the redistribution remedy to marriages dissolved by death and marriages entered into after 1 November 1984.
This case significantly changes the law around the redistribution of marital property and has far-reaching consequences for individuals in similar circumstances.
The Matrimonial Property Act, which governs matrimonial property regimes in South Africa.
The Divorce Act governs divorce in South Africa.
The Constitution, the highest law in South Africa, sets out the Bill of Rights.
Section 2: Every marriage entered into after the commencement of the Matrimonial Property Act that excludes community of property and assembly of profit and loss is subject to the accrual system unless the antenuptial contract expressly excludes it.
Section 3(1): Upon dissolution of such a marriage by divorce or death, the spouse whose estate shows no accrual or a smaller accrual than the estate of the other spouse or the estate of a deceased spouse acquires a claim against the other spouse or deceased estate.
The amount of this claim is equal to half of the difference between the accrual of the respective estates of the spouses.
Section 7(3) – A court granting a decree of divorce may, on application by one of the parties to that marriage, and, in the absence of any agreement between them regarding their assets, order that such assets or such part of the assets of the other party – as the court may deem just – be transferred to the first-mentioned party.
Section 7(4) – A redistribution order will not be granted unless the court is satisfied that 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 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 be incurred, or in any different manner.
Section 7(5) – In making a redistribution order, the court will take the following factors into account:
Section 9(1) – Everyone is equal before the law and has the right of equal protection and benefit of the law.
Section 9(3) – The state may not unfairly discriminate directly or indirectly against anyone on one or more grounds, including race, gender, sex, pregnancy, marital status, ethnic or social origin, colour, sexual orientation, age, disability, religion, conscience, belief, culture, language and birth.
Mrs B and Mrs G could not access the redistribution remedy due to the limiting provisions of the Matrimonial Property Act and the Divorce Act.
The court had to decide the constitutional validity of these limitations concerning the equality provisions in the Constitution.
Mrs B married her husband, Mr B, in 1983 in terms of an antenuptial contract. She instituted divorce proceedings against him in 2015 and claimed a redistribution order in terms of section 7(3) of the Divorce Act.
Mr B died before the divorce order was granted. Mrs B wished to carry on with her claim for redistribution.
Mrs G married her husband, Mr G, in 1988. She instituted divorce proceedings against him in 2017, which are still pending. Mrs B wished to pursue a claim for redistribution under section 7(3) of the Divorce Act, stating that she contributed to her husband’s estate mainly in non-financial ways and that he is now very wealthy.
The High Court in each case, made an order of constitutional invalidity of section 7(3). The High Court orders came before the Constitutional Court for a confirmation of their invalidity.
Mrs B is the applicant in the first matter.
Mrs R, the first respondent in the second matter, is the daughter of Mrs B and co-executor of the late Mr B’s estate.
The Minister of Justice and Constitutional Development is the second respondent in the first matter.
Mrs G is the applicant in the second matter.
The Minister of Home Affairs is the first respondent in the second matter.
The Minister of Justice and Constitutional Development is the second respondent in the second matter.
Mr G is the third respondent in the second matter and the husband of Mrs G.
The Commission for Gender Equality and Gauteng Attorneys Association were admitted as amici curiae (friends of the court).
The court had to determine the constitutional validity of section 7(3) of the Divorce Act.
The court had to determine the following legal questions:
Determining these issues would result in a significant change in the law and affect many individuals in similar situations.
Mrs B argued that the law unjustifiably differentiates and discriminates against old antenuptial marriages dissolved by death based purely on the marriage date.
She contended that this discrimination is based on marital status and impairs the fundamental dignity of spouses married before 1 November 1984.
In the first matter, the Minister of Justice and Constitutional Development argued that the Divorce Act deals with divorce matters and the applicant should have directed any constitutional attack on the Matrimonial Property Act.
He submitted that there would be difficulties in adjudicating a redistribution claim against the estate of a deceased spouse who did not contractually commit to such an outcome and can no longer dispute the extent of the claimant’s contributions.
Mrs G argued that the exclusion of the redistribution remedy for individuals married after 1 November 1984 differentiates between these individuals and the following classes of spouses who have access to the remedy:
She contended that this differentiation is irrational and constitutes discrimination based on sex, gender, marital status, culture, race and religion.
Mrs B also advanced expert evidence that showed that women typically enter marriage poorer and more dependent than men and tend to have less bargaining power.
The expert evidence further contended that the absence of a redistribution remedy for new antenuptial contract marriages fails to correct the exploitation of women’s care and domestic labour to the direct and structural advantage of men, who are generally favoured by antenuptial contract marriages.
The Minister of Justice and Constitutional Development did not oppose confirmation in the second case but submitted that the order of invalidity, if granted, be suspended because the South African Law Reform Commission is already reviewing the matrimonial property law and the possible extension of the redistribution remedy.
The Commission for Gender Equality cited various international law instruments that permit and oblige South Africa to allow a departure from unjust antenuptial contracts in all marriages.
They argued that antenuptial contracts often involve unequal bargaining power, and enforcing them routinely can have severe consequences for a spouse.
The Gauteng Attorneys Association submitted that the redistribution remedy was introduced for a limited purpose – to alleviate the plight of women who never had the choice to marry according to the accrual system.
The Association further argued that extending the redistribution remedy to new antenuptial contract marriages would be an unjustifiable arbitrary deprivation of property infringing on section 25(1) of the Constitution.
After carefully considering all the arguments presented, the court was persuaded by the arguments in favour of extending the redistribution remedy.
The Court agreed that the exclusions constituted unjustifiable discrimination against old antenuptial contract marriages dissolved by death and unjustifiable indirect discrimination against new antenuptial marriages.
The court referred to Harksen v Lane, which set out the framework for determining whether a provision of the law constitutes unfair discrimination.
Stage 1 determines whether the provision differentiates between people or categories of people and whether the differentiation bears a rational connection to a legitimate government purpose.
Stage 2 determines whether the differentiation amounts to unfair discrimination.
This case demonstrated that the court may be sensitive to the emotional or cultural reasons why prospective spouses do not press for their commercial advantage in antenuptial contracts.
Individuals facing similar situations are advised to consult divorce and family law specialists.
Rogers J, Zondo CJ, Kollapen J, Madlanga J, Majiedt J, Makgoka AJ, Potterill AJ, Rogers J, Theron J and Van Zyl AJ
For the Applicant: R du Plessis SC, D Gianni and C Strydom
Instructed by Vogel Inc, Pretoria
For the Second Respondent: MPD Chabedi
Instructed by the State Attorney, Pretoria
For the Applicant: W Trengove SC and S Scott
Instructed by Clarks Attorneys, Johannesburg
For the Second Respondent: M Mphaga SC, D Mtsweni and D Sekwakweng
Instructed by State Attorney, Pretoria
For the First Amicus Curiae: M Bishop and A Christians
Instructed by Legal Resources Centre, Johannesburg
For the Second Amicus Curiae: LC Haupt SC, S Mentz, A Thompson and SM Stadler
Instructed by Adams & Adams, Pretoria
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