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29 February 2024 | Story VALENTINO NDABA | Photo Stephen Collett
Prof Bradley
Prof Bradley Smith tackles the ambiguities surrounding trust misuse during divorce proceedings.

In his inaugural lecture on 21 February 2024 at the University of the Free State (UFS), Prof Bradley Smith explored the complexities of trust misuse in the context of property disputes during divorce proceedings. Prof Smith is an Extraordinary Professor at the UFS Faculty of Law. Drawing on two decades of judicial evolution in the Supreme Court of Appeal (SCA), Prof Smith highlighted the inconsistencies in the SCA’s treatment of this issue that impedes attempts to curb “divorce planning” by way of a trust and proposed solutions to address them.

One of the core issues he identified is the abuse of trusts, where assets are placed within a family trust to diminish a spouse’s personal estate value while treating the trust property as personal property for personal gain. This is often done in an attempt to evade the financial consequences of divorce. Prof Smith explained that this practice undermines the essence of trust law and that the inconsistent approaches by our courts exacerbate the challenges in dividing property during divorce proceedings in a manner that respects the spouses’ matrimonial property regime.

Navigating challenges: reflections on research and its importance

Prof Smith’s proposal revolves around the development of a consolidated test for piercing the veneer of an abused trust, aiming to enhance legal certainty. He emphasised the necessity of a unified approach. “Utilising this test will ensure uniformity because of its applicability to all marriages out of community of property, irrespective of whether the accrual system is involved,” he said.

His meticulous examination of conflicting judgments was praised by Dr Brand Claassen, head of the Department of Private Law, who described it as “the work of a master craftsman”. Retired Judge of Appeal, Eric Leach, also highlighted its critical importance in clarifying complex legal issues for the public good.

“It is of critical importance and in the public interest for judicial decisions, particularly those of higher courts such as the Supreme Court of Appeal and Constitutional Court, to be subjected to careful and considered analysis and, if needs be, criticism. Prof Smith’s inaugural lecture on combating trust form abuse in the context of matrimonial property claims at divorce, in which he carefully considered and analysed the conflict between several Supreme Court of Appeal judgments, was a valuable and important study on the issue,” said Judge Leach. He added that he hoped Prof Smith’s research would be considered by the SCA in future.

Future directions: advancing discourse and sound legal theory

Looking ahead, Prof Smith envisions further research into the applicability of the consolidated test to marriages in community of property, aiming to address remaining uncertainties that lie at the intersection of matrimonial property and trust law. He emphasised the importance of countering the prevailing “catch-me-if-you-can” attitude in divorce matters, advocating for proactive measures to uphold fairness and justice in matrimonial property disputes.

In conclusion, Prof Smith’s inaugural lecture provided valuable insights into combating trust form abuse within the context of matrimonial property claims at divorce. His proposed solutions and ongoing research efforts signify a commitment to advancing discourse on trust law theory and practice, with the ultimate aim of a sound judicial approach that serves the needs of South African society.

News Archive

UV belê in gehalte met strategiese fokusgroepe - Volksblad
2006-02-09

Verslaggewer
DIE Universiteit van die Vrystaat (UV) gaan vanjaar R10 miljoen beskikbaar stel om sekere van sy akademiese en navorsingsaktiwiteite in strategiese fokusgroepe te bedryf.

 

Volgens prof. Frederick Fourie, rektor en visekanselier van die UV, is hierdie ’n belegging in gehalte wat sal help om die UV nasionaal en internasionaal van ander universiteite in die wêreld te onderskei.

Tydens die amptelike opening van die UV verlede week het Fourie beklemtoon dat die strategiese fokusgroepe veel meer behels as net ’n herorganisering van gevestigde navorsingsgebiede.

“Sulke fokusgroepe behels ’n gefokusde deskundigheidsgebied en nie slegs navorsing nie, maar ook sterk voorgraadse en veral nagraadse onderrig en ’n potensieel sterk wetenskaplike grondslag vir samelewingsdiens.

“Strategiese fokusgroepe sal georganiseer word op die grondslag dat hierdie kennisgebiede op kort termyn die vlagskepe van die UV kan word. Dit beteken dat hierdie die gebiede is waarin die UV nou of in die toekoms waarskynlik ’n kompeterende voorsprong sal hê.”
Hy het gesê dit is belangrik dat die UV hom in die volgende fase van sy ontwikkeling posisioneer, nie net as ’n goeie onderrig- en navorsingsuniversiteit nie, maar ook as ’n universiteit wat in strategies belangrike kennisgebiede uitblink. Dit is noodsaaklik om energie en hulpbronne so te rig.

Nie alle akademiese en navorsingsaktiwiteite gaan egter hierdeur geraak word nie. ’n Breë ondersteuningsgrondslag is die afgelope paar jaar geskep vir uitnemende navorsing deur alle akademiese personeellede in hul eie navorsingsgebiede. Dié inisiatief sal naas die nuwe fokusgroepinisiatief steeds voortgaan.

Fourie sê die strategiese fokusgroepbenadering sal in lyn wees met die benadering wat ontwerp word deur die Nasionale Navorsingsraad (NNR) om nasionale prioriteite in berekening te bring. Breedweg is die vyf strategiese gebiede vir die UV voorlopig die volgende:
1. Voedselproduksie, voedselgehalte en voedselsekuriteit vir Afrika.
2. Ontwikkeling en streeksontwikkeling binne die Afrika-konteks.
3. Maatskaplike transformasie binne die Suider-Afrikaanse en Afrika-konteks.
4. Waterhulpbron- en ekostelselbestuur.
5. Tegnologie vir die toekoms. (’n Aparte fokusgroep rakende die chemiese nywerheid kan dalk bepaal word).

“Binne elk van hierdie gebiede kan ’n aantal nisgebiede geïdentifiseer word. Die fokusgebiede dek sowel die geestes- as die natuurwetenskappe, maar uiteraard kan en moet dit nie alles vir almal probeer wees nie,” sê Fourie.

Die presiese formulering en inhoud van die fokus- en nisgebiede sal nog bepaal word tydens gesprekke op die kampus. Dit sal met die hulp van kundiges buite die UV geskied.
Hy sê dit het sin dat ’n mediumgrootte universiteit soos die UV sy menslike hulpbronne, infrastruktuur, finansiële hulpbronne en intellektuele kundigheid sal konsentreer om te verseker dat ’n bydrae gelewer word tot Bloemfontein, die Vrystaat, die land en die Afrika-vasteland.

Hy sê van die uitvloeisels kan ’n belangrike impak op nywerheidsontwikkeling hê, byvoorbeeld in die chemiese bedryf, en dit mag ook ’n grondslag skep vir samewerking met provinsiale, nasionale en internasionale vennote.

Behalwe die R10 miljoen vir die vestiging van die fokusgroepe is daar die afgelope paar jaar groot bedrae beskikbaar gestel vir talle projekte om gehalte in onderrig en leer, in navorsing en ander gebiede te verbeter.

Berig verskyn in Volksblad - Dinsdag, 7 Februarie 2006

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