The long-running legal dispute between businessman Sbu Mpisane and socialite Shauwn “MaMkhize” Mkhize has taken a decisive turn after the KwaZulu-Natal High Court in Durban appointed a liquidator to oversee the division of their joint estate.
Acting Judge ED Mnyongani granted Mpisane’s unopposed application on Tuesday and appointed Eugene Nel to identify, collect and distribute the former couple’s estate equally between them.
Mkhize did not file opposing papers in the application.
The order follows an earlier court order issued in November 2024, which required a liquidator to be appointed to oversee the financial division of the estate after the couple’s separation.
Mpisane returned to court after Mkhize failed to appoint a liquidator as required.
The latest order gives Nel extensive powers to establish the value of the estate, determine its liabilities and prepare a final account for both parties.
Liquidator given wide powers
Nel may demand a full and accurate account of the former couple’s assets and liabilities.
He may value movable and immovable property, obtain professional appraisals and take possession of assets where necessary to complete his mandate.
The order also allows him to obtain legal advice, investigate the financial position of the estate and require Mpisane and Mkhize to attend meetings or answer questions on written and reasonable notice.
Nel may hear representations from the parties, consider objections and rule on disputes relating to the proposed division.
If he requires further instructions, he may approach the court for directions.
The liquidator and any people appointed by him may enter premises to carry out valuations and appraisals.
The order is intended to turn a court-directed division into a formal process in which the assets and debts are identified before the remaining estate is divided.
Nel must prepare and submit a final account to the parties’ attorneys within six calendar months.
That period may be extended if the parties agree or if circumstances justify a longer period.
Parties given time to object
Once Nel submits the final account, Mpisane and Mkhize will each have 14 days to lodge an objection.
If one party objects, the other will have an additional 14 days to make representations in response.
If no objection is lodged within the prescribed period, the account will become final and binding.
A ruling by Nel on an objection will also become final and binding unless the affected party approaches the court for relief within 14 days.
The process gives both parties an opportunity to challenge the proposed division, but it also sets strict deadlines for objections and court applications.
The costs of the liquidation process and Mpisane’s application will be paid from the joint estate.
Why Mpisane returned to court
Mpisane, represented by Strauss Daly Incorporated, told the court that Mkhize had failed to comply with her obligation to appoint a liquidator.
His legal team argued that her failure had delayed the finalisation of the financial aspects of their separation.
They said Mpisane had been placed in an untenable position because he could not access what he believed was his rightful share of the estate or move forward with his life.
The matter was previously heard on 13 April this year, when the court adjourned it sine die.
The Latin phrase means that the matter was postponed without a date being set for it to return.
Mpisane was given permission to supplement his court papers. The court indicated that the matter should proceed as an application for the appointment of a liquidator rather than as an attempt to reopen the earlier order.
He subsequently filed supplementary papers and returned to court.
Because Mkhize did not oppose the application, the judge granted the order without hearing a contested argument from her side.
The unopposed nature of the order does not itself determine all disputes about the value of particular assets, outstanding debts or the parties’ respective claims. Those issues will be dealt with during the liquidation process.
Estate affected by SARS action
The division of the joint estate is taking place against the backdrop of serious financial pressure and action by the South African Revenue Service.
SARS and the Asset Forfeiture Unit previously raided properties linked to the couple and seized luxury vehicles and other high-value items.
The vehicles included a Range Rover, a Mercedes-Benz G-Wagon and a BMW X7. Other seized items included designer furniture, electronic equipment and jewellery.
The assets were auctioned as part of efforts to recover an outstanding tax liability reported to be about R40 million.
The proceeds from the sales did not cover the full liability.
Earlier court proceedings linked the tax dispute to the Shandi Trust, a family entity associated with Mkhize. The reported tax figure in those proceedings was approximately R37.9 million.
The tax dispute and the asset sales have complicated the process of dividing the former couple’s estate.
Nel will have to establish which assets and liabilities form part of the joint estate, what has already been sold or attached and what obligations remain outstanding.
He will also have to distinguish between property belonging to the joint estate and assets held by trusts, companies or other legal entities.
Royal AM also affected by financial troubles
The financial problems have also had consequences for Royal AM, the Premier Soccer League club associated with Mkhize.
Mkhize acquired the football club after purchasing Bloemfontein Celtic’s league status in 2021 and later developed Royal AM into one of the most recognisable clubs in South African football.
The club was eventually expelled from the Premier Soccer League after failing to fulfil several fixtures.
Royal AM also faced difficulties paying player salaries during a period of mounting financial pressure.
The club’s problems formed part of the wider financial background surrounding the estate and the asset seizures.
The latest court order does not itself decide the future of Royal AM or determine ownership of every asset linked to the club.
Those questions depend on the ownership structures, the source of the assets and the legal claims made by the relevant parties.
The liquidator’s role is to investigate the joint estate covered by the court order and to prepare a final account for division.
Former power couple now facing formal asset division
Mpisane and Mkhize were once among South Africa’s most visible high-profile couples.
They were associated with luxury homes, designer clothing, expensive vehicles and a lavish public lifestyle.
Their business and football interests also made them a familiar presence at major social and sporting events.
The couple previously founded Royal Eagles in 2014 and later went their separate ways after their relationship ended.
Their separation led to a legal dispute over the financial division of property and other interests acquired during their marriage.
The latest order moves that dispute away from informal negotiations and places the work in the hands of a court-appointed liquidator.
Nel will now be required to gather the financial information needed to determine what the estate owns, what it owes and how the remaining value should be divided.
The process may require both parties to produce records, answer questions and co-operate with valuations.
If disputes arise, Nel may rule on objections, while the parties retain the right to approach the court within the deadlines set out in the order.
Six-month deadline now starts
The six-month period for preparing the final account is the next major deadline in the case.
The account will need to reflect the assets and liabilities identified by Nel and explain how the estate is to be divided equally between Mpisane and Mkhize.
The process may take longer if further information is required, if the parties agree to an extension or if circumstances justify additional time.
The order also means that the parties cannot simply leave the division unresolved after the earlier court order requiring a liquidator.
Mpisane’s application has placed the implementation of that order under a formal court-backed process.
Mkhize has not opposed the latest application, but the liquidation process may still lead to objections once the final account is delivered.
Until Nel completes his work, the exact value of the estate and the amount available for distribution cannot be confirmed.
The former couple’s financial dispute remains ongoing, but the Durban High Court has now set out the mechanism and deadlines for bringing the division of their joint estate to a conclusion.