The judgment creditor, African Banking Corporation of Zimbabwe, obtained a writ of execution against immovable property registered in the name of Walter Madziro (the judgment debtor). The Sheriff attached the property known as No. 28 McGowan Road, Belvedere, Harare (Stand 13594 Salisbury Township). The claimants (Walter Madziro's ex-wife Nomvuyo Hilary Madziro and their two minor children, Anesuishe and Ruvarashe Madziro) filed an interpleader claim asserting ownership of the property. The property had been awarded to them in a divorce order granted on 8 December 2011, which incorporated a consent paper stipulating that the property be transferred to the first claimant and the two minor children within six months, with costs of transfer to be met by the plaintiff (Walter Madziro). However, transfer had not been effected and the property remained registered in Walter Madziro's name. The judgment creditor argued that since transfer had not occurred and the property remained registered in the judgment debtor's name, it was executable.
1. The claimants' claim to Stand 13594 Salisbury Township measuring 1543 square metres held under deed of transfer 503/2002 dated February 2002 under attachment in execution of judgment HC 5306/12 was granted. 2. The property was declared not executable. 3. The judgment creditor was ordered to pay the costs of the claimants and the applicant.
Where a court order in divorce proceedings orders the transfer of immovable property from one spouse to another (and/or to children of the marriage) pursuant to section 7(1)(a) of the Matrimonial Causes Act, ownership of that property passes to the party awarded the property by virtue of the court order itself, notwithstanding that registration of transfer has not yet been effected. The party in whose name the property remains registered after such a court order holds title only on behalf of the true owners as determined by the court order. Such property is not executable at the instance of creditors of the spouse divested of ownership by the divorce order, even though formal transfer has not been completed. The registration of transfer is merely the final administrative stage in giving effect to the court's order, and delay in effecting transfer does not invalidate the court order or restore ownership to the party divested thereof.
The court observed that where a party has been ordered to transfer title to property following a divorce order and continues to hold onto such title, the court retains the power to coerce the transfer and to punish by contempt of court should it be so approached by the party who was awarded the property. The court also noted that there was no justification for the judgment creditor to resist the interpleader claim once the claimants had produced a valid court order, thereby putting forward a tangible foundation for their claim, and that the claimants were unnecessarily put through expense by the resistance.
This case establishes important principles regarding the protection of property awarded in divorce proceedings from execution by creditors of the spouse divested of ownership. It clarifies that ownership passes upon the granting of a divorce order incorporating asset division under section 7(1)(a) of the Matrimonial Causes Act, and not merely upon registration of transfer. The judgment protects vulnerable parties, particularly spouses and children awarded matrimonial property, from having such property attached due to the judgment debtor's failure to comply with transfer obligations. It reinforces the binding nature of court orders in matrimonial property disputes and limits the ability of judgment creditors to rely on registration formalities to defeat substantive court orders divesting a debtor of property ownership.