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Tuesday, October 10, 2023
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Nature of the Case

Both cases concerned the constitutional validity of section 7(3) of the 1979 Divorce Act, which provided differing financial protections regarding dissolution of different types of marriages in South Africa. In each case, the wife who brought the constitutional challenge was the plaintiff in divorce proceedings in the High Court. In EB (Born S) v. ER (Born B) N.O and Others, the court ruled on the absence of a redistribution remedy for assets where the marriage is terminated by death rather than divorce. In KG v. Minister of Home Affairs and Others, the court ruled on the absence of a redistribution remedy where the marriage is entered into on or after 1 November 1984.

Summary

Both cases concerned the constitutional validity of section 7(3) of the 1979 South African Divorce Act, which provided that “where spouses married out of community of property get divorced, the divorce court may make an equitable order that assets of the one spouse be transferred to the other” via a redistribution order. The key issue here was that for ordinary civil marriages, that remedy was only available for parties who entered into marriage before November 1, 1984. In both cases, the wife brought the constitutional challenge via the High Court of South Africa, Gauteng Division, Pretoria, where the High Court made a declaration of constitutional invalidity.

The Matrimonial Property Act came into force on November 1, 1984, establishing an ‘accrual’ system for marriages that delegated how assets may or may not be transferred to the parties during separation or death. In order to determine whether the distribution order was just and equitable, the Act held that a spouse must prove to the court that “the party in whose favor the order is granted contributed directly or indirectly to the maintenance or increase of the estate of the other party during the existence of the marriage, either by the rendering of services, the saving of expenses that would have otherwise been incurred, or in any other manner.” Thus, the Act only applied to marriages entered into before November 1, 1984. Previously, the Divorce Act always allowed a ‘richer’ spouse married out of property to hand over assets to the other spouse. This ruling means that the pool of spouses who can make such a request has widened.

Ruling on both cases together, the Constitutional Court held that section 7(3) of the 1979 Divorce Act was unconstitutional, and that indigent spouses are entitled to financial protections after the dissolution of their marriages. In the EB v. ER case, the Court upheld the High Court’s ruling that a marriage dissolved by death, as opposed to divorce, was missing from the Act such that it created a differentiation for spouses: such spouses would receive the benefit of a redistribution remedy only where the marriage is dissolved by divorce and not death. The Court found this unfair discrimination, and thus unconstitutional. In KG v. Minister of Home Affairs and Others, the Court similarly upheld the High Court ruling that section 7(3) was unconstitutional because it only applied to marriages before November 1, 1984, when it should apply regardless of the timing of the marriage.

Enforcement of the Decision and Outcomes

In issuing their decision in October 2023, the Constitutional Court suspended the order for two years and gave MPs in South Africa a two-year deadline to 1) fix the issues in the Divorce Act according to the Court’s decision, and 2) to pay the two women at the heart of the consolidated cases. In the interim, the Matrimonial Property Act and section 7(3) of the Divorce Act will apply to marriages dissolved by death, and a party to a new marriage under KG will be able to apply for the same redistribution order. As of January 2024, the advisory committee of the South African Law Reform Commission Project 100E was additionally reviewing other laws that deal with matrimonial property regimes to make recommendations that would further expand the Constitutional Court’s efforts.

Significance of the Case

The case is significant because it represents the Constitutional Court ordering changes to the Divorce Act in order to make the divorce process more considerate of equitable asset distribution. The decision will empower the courts to consider the entirety of a spouse’s contributions—both financial and non-financial—when dividing assets during a divorce. The judgment provides financial relief and assurance to spouses whose marriages end without accrual of property, regardless of when the parties were married or the nature of the separation. Additionally, the judgment will benefit spouses in Muslim marriages out of community of property without accrual who can now apply for a redistribution order to transfer assets. The decision highlights inequalities within marriage and within dissolution of marriage, particularly where the marriage contract or distribution of property may have been influenced by a familial power dynamic.

For their contributions, special thanks to ESCR-Net member: the Program on Human Rights and the Global Economy (PHRGE) at Northeastern University.