Divorce can be a challenging and emotionally taxing process, but understanding the legal aspects involved can make it more manageable. In South Africa, divorce is governed by the Divorce Act, 70 of 1979, which outlines the rules and regulations for ending a marriage. One of the key components of divorce proceedings in South Africa is the calculation of the accrual, which determines the division of assets and liabilities accumulated during the marriage. In this article, we will provide a comprehensive guide on how to calculate the accrual in the context of divorce under South African law.
Understanding the Accrual System:
In South Africa, there are two main systems of marital property regimes: in community of property and out of community of property. The accrual system is a form of out of community of property regime that allows for the sharing of assets and liabilities accumulated during the marriage. It is important to note that the accrual system only applies to marriages entered into after November 1, 1984, unless the parties have specifically excluded it through a valid antenuptial contract.
The accrual system aims to ensure that each spouse receives an equitable share of the wealth accumulated during the marriage, regardless of their respective contributions. It provides a fair and balanced approach to property division, taking into account the economic partnership established during the marriage.
Calculating the Accrual:
To calculate the accrual, the net value of the estate of each spouse at the commencement of the marriage and at the dissolution of the marriage is determined. The net value of the estate is calculated by subtracting the liabilities from the assets.
Liabilities include any debts or obligations owed by the spouses, such as mortgages, loans, or credit card debts. Assets, on the other hand, encompass all properties and investments owned by the spouses, including immovable property, movable property, investments, and cash.
Once the net value of the estate at the commencement and dissolution of the marriage has been ascertained, the accrual is calculated by subtracting the net value of the estate at the commencement of the marriage from the net value of the estate at the dissolution of the marriage for each spouse. The spouse whose accrual is smaller is entitled to claim half of the difference between the two accruals from the other spouse.
Formula for calculating the accrual:
Accrual = Net value of estate at dissolution of the marriage – Net value of estate at commencement of the marriage
Example:
Let’s illustrate the calculation of the accrual with an example. Suppose John and Mary got married in 2000 and decided to get divorced in 2023. At the commencement of their marriage in 2000, John’s net estate was valued at ZAR 1,500,000, and Mary’s net estate was valued at ZAR 2,000,000. At the dissolution of their marriage in 2023, John’s net estate was valued at ZAR 4,000,000, and Mary’s net estate was valued at ZAR 3,000,000.
John’s accrual = ZAR 4,000,000 – ZAR 1,500,000 = ZAR 2,500,000
Mary’s accrual = ZAR 3,000,000 – ZAR 2,000,000 = ZAR 1,000,000
Since Mary’s accrual is smaller, she is entitled to claim half of the difference between the two accruals from John, which is ZAR 750,000.
Division of Accrual:
The division of the accrual can be done in two ways: by way of an agreed settlement or by a court order.
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