How Will Accrual Be Calculated During My Divorce?
Divorce is a challenging process, especially when it comes to dividing assets accumulated during the marriage. In South Africa, the Accrual System plays a pivotal role in determining how the growth of each spouse's estate is shared upon divorce. In this article, we will delve into the intricacies of how accrual is calculated in divorce cases and provide a scenario to illustrate the process.
Accrual System: Explained
The Accrual System is a legal framework designed to ensure fair distribution of wealth acquired during the marriage. It aims to protect the rights of spouses while considering individual contributions to the marital estate. Unlike the Community of Property regime, the Accrual System maintains separate estates for each spouse during the marriage, allowing for independent growth.
The calculation of accrual involves determining the difference between the growth of the estates of each spouse. This is done by comparing the net value of each spouse's estate at the commencement of the marriage with its net value at the time of divorce. The spouse with the smaller accrual has a claim against the other spouse for half of the difference between the accruals. Excluded Assets Certain assets are excluded from the accrual calculation, as they are not deemed to contribute to the marital growth.
These assets include:
1. Inheritances and Donations: Assets received as inheritances or donations specifically to one spouse are not included in the accrual calculation.
2. Assets Excluded by Antenuptial Contracts: Assets excluded by the terms of an antenuptial contract or an agreement between the spouses are also not factored into the accrual calculation. Scenario: Calculating Accrual Let's consider a scenario involving Alice and John. At the start of their marriage, Alice's estate is valued at R1 million, while John's estate is valued at R800,000. At the time of their divorce, Alice's estate is worth R2.5 million, and John's estate is valued at R1.6 million. Alice's Accrual: R2,500,000 - R1,000,000 = R1,500,000 John's Accrual: R1,600,000 - R800,000 = R800,000 Difference in Accruals: R1,500,000 - R800,000 = R700,000 John owes Alice half of the difference in accruals: R700,000 / 2 = R350,000.
Conclusion
The Accrual System in South African divorces ensures equitable distribution of wealth accumulated during a marriage, considering the contributions of each spouse. Understanding the calculation process and the assets excluded from accrual is vital for achieving a fair outcome. If you're facing divorce, consulting with legal professionals who specialize in family law can provide you with expert guidance to navigate the complexities of the Accrual System. For personalized assistance and guidance on Accrual System matters, contact Mary-Jane Mphahlele Attorney at info@mjmattorneys.co.za.
Our team of experienced family law experts is here to help you achieve a fair resolution during this challenging time.
Disclaimer: This article provides general information and should not be considered legal advice. Consult with a qualified legal professional for personalized guidance.
Calculation of Accrual