Antenuptial Contract Including The Accrual System
When you marry in South Africa, and you decide to conclude an antenuptial contract before you marry, you have 2 options available to you.
You can elect to include the operation of the accrual system as provided for in the Matrimonial Property Act.
If you do so, you have the option in the contract, to exclude certain assets from your estate at the termination of your marriage, either by divorce or death. You can also insert in the contract your value in rand terms.
Upon the termination of the marriage, whether by divorce or death, your estate is valued in rand terms. Then your excluded assets as well as your rand commencement value (adjusted to present day value applying the consumer price index) are deducted from your end value. This calculation is done for both the husband and the wife. The amount so calculated is known as your accrual (or growth in layman’s terms).
The party whose estate shows a larger accrual must give half of the difference to the party who shows a smaller accrual or no accrual.
It may seem complicated, but at Simpson Incorporated we have 30 years of expertise to explain to you in simple language the implications of the contract and to prepare an antenuptial contract that best serves your circumstances.
Marriage also has other important legal consequences, including estate planning. We can also assist you will the drafting and execution of a will at an affordable rate.
We look forward to being of assistance to you.