Marriage affects more than day-to-day finances. It also determines what happens to assets and debts when a marriage ends. In South Africa, marriage out of community of property with accrual combines separate estates with a claim to share in their growth.

What does marriage with accrual mean?

Each spouse retains a separate estate during the marriage. When it ends through divorce or death, the spouse with the smaller accrual—or no accrual—generally has a claim for half the difference between the two accruals.

For qualifying marriages entered into under an antenuptial contract since 1 November 1984, accrual applies unless the contract expressly excludes it. Older marriages and other circumstances need separate consideration.

Are assets owned before marriage excluded?

Owning an asset before marriage does not automatically exclude that asset and all its subsequent growth. The calculation normally protects the spouse’s starting net estate value, adjusted for inflation. An asset expressly excluded in the antenuptial contract is treated differently.

For example, suppose someone brings an investment into the marriage. Unless it is validly excluded, its later value may form part of the closing estate, while the inflation-adjusted starting net estate value is deducted in calculating accrual.

How is accrual calculated on divorce?

1. Establish each starting net estate. This is the relevant assets less liabilities at marriage. The contract, declarations and supporting records matter; statutory rules may treat the starting value as zero in certain circumstances.
2. Adjust that starting value for inflation. Use the appropriate Consumer Price Index (CPI) figures for the relevant dates on a comparable basis.
3. Establish each closing net estate. Apply the relevant exclusions and value assets and liabilities at dissolution.
4. Calculate each accrual. Subtract the adjusted starting value from the closing net value used for accrual. If there is no positive growth, accrual is zero.
5. Compare the results. Half the difference is the accrual claim of the spouse with the smaller accrual.

Worked example: allowing for inflation

These are invented figures. Assume the CPI adjustment factor over this marriage is 1.50, meaning cumulative inflation of 50%, and that no exclusions or other adjustments apply. This is not an actual inflation figure for a specified period.

Difference: R750,000 − R450,000 = R300,000.
Half the difference: R300,000 ÷ 2 = R150,000.

In this simplified example, Spouse B has an accrual claim of R150,000 against Spouse A.

What if one spouse has zero accrual?

Now change only Spouse B’s closing net estate to R400,000. It is below B’s inflation-adjusted starting value of R450,000, so B’s accrual is zero. A’s accrual remains R750,000.

B’s claim is (R750,000 − R0) ÷ 2 = R375,000. Zero accrual does not mean zero entitlement to claim. If both spouses have zero accrual, there is no difference to share.

Other points to understand

Inheritances, legacies, donations and certain damages have specific exclusion rules and exceptions. The wording of the contract and the ability to trace excluded property matter. Accrual also does not mean that every asset must be divided in half.

Keep the antenuptial contract, starting valuations, debt records and evidence of exclusions together. An attorney should assess the actual contract and calculation, including any pension-interest issues.

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This article provides general South African financial education only. It is not personalised financial, tax or legal advice. Examples are simplified.

Sources: Matrimonial Property Act 88 of 1984, sections 2–6. Department of Justice: consolidated Act; South African Government: Act and commencement details.