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Lwfla1 Week 4
Lwfla1 Week 4
Lwfla1 Week 4
LWFLA1-44
Eduvos (Pty) Ltd (formerly Pearson Institute of Higher Education) is registered with the Department of Higher Education and Training as a private higher education institution under the
Higher Education Act, 101, of 1997. Registration Certificate number: 2001/HE07/008
What will be covered in today’s lesson?
1 2 3
Week 4
Understand the concepts of Discuss the legal Discuss the effect of section
Lesson 1
'marital property' and
identify the various
consequences of delicts
committed against, or by a
15 of the Matrimonial
Property Act 88 of 1984 on
matrimonial property spouse, married in the administration of the
systems in South African community of property. joint estate for spouses
law. married in community of
property.
The Matrimonial Property Act 88 of 1984 took effect on 1 November 1988,
and since then spouses can elect between the following matrimonial property
systems:
1. In community of property;
2. Out of community of property excluding community of profit and loss;
3. Out of community of property with the accrual system.
MARRIAGE IN COMMUNITY
OF PROPERTY
There are legal costs associated with
it is the default regime and no
the concluding of an antenuptial
antenuptial contract (a notarial
contract, and some couples wish to
contract concluded prior to marriage)
avoid such costs, thus rendering their
is required
union in community of property.
There are legal costs associated with the concluding of an antenuptial contract, and some couples wish to avoid such costs,
thus rendering their union in community of property.
Being married in community of property results in, for example, a joint estate in terms whereof one is responsible for any debt incurred by
one’s spouse, including debts incurred prior to marriage (Skelton and Carnelley, 2011). Debt incurred prior to marriage may include, for
example, contractual debt, maintenance payable to an ex-spouse from a previous marriage or maintenance payable to children born of a
previous marriage or extramarital children). Each spouse has an undivided or indivisible half-share of the joint or communal estate and each
spouse has equal management of the joint estate, and the consent of the other spouse is required for certain transactions.
All assets belonging to the spouses prior to the marriage and all assets accumulated during the marriage fall into the joint/communal estate
(with certain exceptions). Each spouse has the capacity to bind the joint estate through their actions (Cronje and Heaton, 2016). Should
insolvency result, both spouses will be declared insolvent. Upon divorce, the assets of the joint estate, at the date of dissolution, will be
divided equally among the parties to the marriage.
MARRIAGE OUT OF COMMUNITY
OF PROPERTY (W/O ACCRUAL)
In terms of this marital property system, prospective spouses will need to enter into an antenuptial contract drafted by a
notary public (a specialist legal practitioner) wherein they excluded the accrual system from operating in respect of their
marriage. Such a notarial contract also needs to be registered with the Registrar of Deeds in order to be valid as against third
parties.
This means that there is no joint estate, and each spouse keeps his or her estate separately (there is no joining and no
accrual). In this case, the patrimonial position of the spouses after the conclusion of the marriage will be similar to that
which prevailed prior to the marriage
Both spouses retain their own separate estates consisting of all the assets and liabilities they obtained before
entering into marriage (Skelton and Carnelley, 2011). Spouses are not liable for each other’s debts, with the
exception of household necessaries. Where the accrual system is excluded, one spouse cannot share in the
accumulation of the other spouse’s estate.
Please note: The consequences of a marriage out of community of property, with or without the accrual
system, remain identical during the marriage, the effects of the accrual system only manifest themselves at the
dissolution (by death or divorce) of the marriage
MARRIAGE OUT OF COMMUNITY
OF PROPERTY (WITH ACCRUAL)
In terms of this regime, an antenuptial contract notarised by a notary public, will also be required. Spouses retain control
over their separate estates, which are administered independently. All marriages out of community of property are
automatically deemed to be contracted with the accrual system operating unless its operation has been expressly excluded
in the antenuptial contract (Cronje and Heaton, 2010).
With the accrual system, the spouse whose estate has shown the smaller accrual can share in the growth/accumulation
shown by the other spouse’s estate (Skelton and Carnelley, 2011). The Matrimonial Property Act 88 of 1984 prescribes a
formula that needs to be followed when calculating the accrual. This marital property system is believed to be more just and
equitable as compared to a total separation of property that excluded the accrual system (Skelton and Carnelley, 2011).
• Couples are able to, in terms of section 21(1) of the Matrimonial Property Act 88 of 1984, to apply for
the amendment of their marital regime.
• However, there are a number of requirements that have to be adhered to in order for such an
amendment to be affected. For example, there must exist sound reasons for the proposed change,
notice of the intention to amend must be provided to the Registrar of Deeds, the same which must be
published in the Government Gazette as well as two local newspapers.
• A draft notarial contract must also be submitted along with the application to court, as well as written
confirmation that no other persons (e.g., creditors) will be prejudiced by the proposed regime change.
Discussion!
What are the implications of the
following in respect of the different
marital property regimes?
• ESTATE
• ASSETS
• BANK ACCOUNTS
• DEBTS
Delictual Damages
CE debiti (also sometimes referred to as a security cession), is where a debtor cedes (transfers) to a creditor certain
incorporeal personal rights to secure the repayment of a debt (the ‘principal debt’) (Mostert and Pope, 2010).
• Examples of these ceded personal rights are – book debts, insurance policies, shares etc. In a cession in security, the
SSI cedent transfers its rights of action to a debt owed to it, known as the ‘principal debt’, to the cessionary as security
for the debt owed by the cedent to the cessionary, known as the secured debt (Mostert and Pope, 2010).
ON
• A surety agreement generally is concluded in addition to the principal credit agreement where one person takes responsibility for the
debt in the event that the debtor can no longer meet the obligations of the credit agreement (Mostert and Pope, 2010).
• For example, it is common to find banks requesting a director to sign as surety for finance advanced to the company by a bank.
SU
Surety agreements usually involve three parties namely the creditor, the principal debtor and the surety. In these agreements, the
surety undertakes to the creditor that should the principal debtor fail in its obligations that he will indemnify the creditor (Mostert
and Pope, 2010).
• This practically means that the surety will assume the financial obligations of the principal debtor. When a surety signs an agreement
RE that binds him/her as not only surety, but as co-principal debtor it has the effect that the surety’s obligations are equal to that of the
principal debtor. In other words, the creditor is now in the position to take action against the surety as co-principal debtor without
having to first claim from the principal debtor (Mostert and Pope, 2010).
TY
Van Der Merwe v RAF
• The wife (Applicant) instituted an action against the Road Accident
Fund (RAF), an insurer which is a statutory body liable to compensate
her for bodily injuries caused by the driving of a motor vehicle.
• The RAF, however, would only be liable if Applicant could institute a
lawful claim against the driver of the motor vehicle that caused her
injuries.
• In casu, the parties were married in community of property. Applicant
sustained injuries when a motor vehicle driven by her husband collided
with her. It was common cause between the parties that Applicant’s
husband had intentionally knocked her over. In fact, he went on to
reverse over her while she was lying on the ground.
• The parties have since divorced. The RAF raised a special plea to the
claim in which it admitted that Applicant was entitled to claim non-
patrimonial damages but denied liability to compensate Applicant for
any patrimonial damages by reason of the provisions of section 18(a)
and (b) read with section 19(a) of the Matrimonial Property Act 88 of
1984, which in effect prohibited claims for patrimonial damages
between spouses married in community of property.
• Applicant replied that section 18 unfairly discriminated on the ground
of marital status against spouses married in community of property as
opposed to spouses married out of community of property. The court
agreed with Applicant and ordered amendments to section 18(b) of the
Act.
DISSOLUTION
OF CIVIL
MARRIAGES
1
Identify and discuss the legal
consequences of the dissolution
of a civil marriage. Apply the
relevant principles to a given set
of facts with reference to legal
authority.
The dissolution of a marriage has both personal and patrimonial
consequences for spouses. In terms of South African law there are
three ways in which a marriage may be dissolved (Conje and Heaton,
2010):
E.g. the consortium omnis vitae (the totality of rights, duties and
advantages accruing to spouses) is dissolved, and spouses no longer
have the rights and responsibilities that flow from the marital
consortium