Financial whizz


Posted by: Amanda | 2013/11/21 17:47

How is property treated in Out of Community of Property with Accrual

Hi, my hubby-to-be and I will be drawing up our anti-nuptial contract soon - Out of Community of Property with Accrual. He has an existing property of which about 60% is paid off. Once we are married we would like to tackle the remaining debt together as soon as possible. How should this asset be treated in the marriage contract. Included? Say the value of the home increases by R500 000 while we are married and we both contributed equally to the outstanding debt on the house, does one party have a claim against the other or are we seen to have grown equally? Regards Amanda

expert answer

Posted by: Sorè Cloete | 2013/11/22 10:28

Dear Amanda

Thank you for your question.  Congratulations on your upcoming wedding.

Should you which to get married out of community with accrual, and you wish to include assets for purposes of accrual, the net value (after the paying of outstanding debt) will be used to determine the accrual on dissolution of the marriage.  Therefore should your husband’s property value grow from say R1 000 000 to R1 500 0000 during the marriage, the outstanding debt in each case would be taken into account. This could mean at the start of the marriage the net asset value: R1 000 000 – R400 000 (debt)  = R600 000.  At the dissolution of the marriage the net asset value is R1 500 000 (assume all the debt is paid).  The growth in the asset value is then equal to R1 500 000 – R600 000 (if we ignore the inflation adjustment on R600 000) = R900 000.  If we assume there are no other assets, you would have an accrual claim of R900 000/2 = R450 000.  The accrual claim is thus not half of the actual asset value.  Should you contribute to paying the debt on the house, you would benefit in the end result of the accrual, provided your estate has a smaller accrual.


Alternatively you could also decide to exclude the property from accrual, and if that is the case and you contribute to the payment of his debt you may have a claim against him upon the dissolution of the marriage.

Trust this answers you question.



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