“Accrual” in terms of an antenuptial contract (“ANC”) is the growth of a spouse’s estate calculated by taking the net value on dissolution of the marriage and subtracting the net value at the commencement of the marriage. This amount is then adjusted in terms of the weighted average consumer price index (“CPI”) taken on commencement and termination of the marriage which gives the accrual of a spouse’s estate. If, after applying this calculation, there appears to be a negative amount the accrual will be deemed to be nil.
Prospective spouses may specifically exclude assets from their accrual when entering into an ANC. The result being that the excluded assets will not be taken into account when calculating the accrual on dissolution of the marriage.
Where spouses wish to exclude an asset, such as a house, from their accrual, they may decide either to exclude the market value of the house at the time of entering the ANC or the house itself.
In making this decision, the following implications must be considered:
Prospective spouses should, therefore, carefully consider these implications before excluding any assets from the accrual agreed in terms of the ANC.
Junior Associate in the Commercial Department at Garlicke & Bousfield Inc
For more information contact Dylan on telephone : +27 31 570 5439, email: email@example.com
NOTE: This information should not be regarded as legal advice and is merely provided for information purposes on various aspects of property law.