SU 6.

2 Variable
Consequences of
MPS: Out of CoP
Prescribed materials
• Chapter 7
• Section 2-10 of the MPA
• Calculation notes on efundi/tutor sessions.
ACCRUAL SYSTEM (MPA) Ch
1
s2 Every marriage …. is subject to the accrual system
… except … if is expressly excluded by ANC.
s3 Accrual system
(1) At… dissolution of a marriage … the spouse whose
estate shows no accrual or a smaller accrual than
the estate of the other spouse, …, acquires a claim
against the other spouse … for an amount equal to
half of the difference between the accrual of the
respective estates of the spouses.
(2) … a claim in terms of subsection (1) arises at the
dissolution … not transferable or liable to
attachment, and does not form part of the
insolvent estate of a spouse.
The accrual
• 4. Accrual of estate (1) (a) The accrual of the estate of a
spouse is the amount by which the net value of his estate
at the dissolution of his marriage exceeds the net value of
his estate at the commencement of that marriage.

• .
 ACCRUAL SYSTEM (MPA)
4 (1) (a) accrual = net value (dissolution) exceeds the net
value (commencement).
(b) In determination of the accrual …
(i) any amount … of damages, other than damages for
patrimonial loss, is left out of account;
(ii) an asset … excluded … in ANC (or substitute) is
excluded
(iii) net value (commencement of his marriage) is
calculated with due allowance … value of money…
weighted average of the CPI (GG) … serves as prima facie
proof of any change in the value of money.
ACCRUAL SYSTEM (MPA)
S5(1) An inheritance, a legacy or a donation ….
accrues … during the subsistence of his marriage
(or substitute) … does not form part of the accrual
… except in so far as the spouses may agree

(2) In the determination of the accrual … a

donation between spouses … is not taken into
account either as part of the estate of the donor or
as part of the estate of the donee.
ACCRUAL SYSTEM (MPA)
s6 Proof of commencement value of estate
(1) … declare that value in the ANC (of notarial
statement within 6 months)
(4) The net value of the estate … is deemed to be nil if-
(a) the liabilities of that spouse exceed his assets…
(b) that value was not declared …

s7 Obligation to furnish particulars of value of

estate (in a reasonable time … furnish full particulars of
the value of that estate.
ACCRUAL SYSTEM (MPA)
.

Now that you have the background / legal rules,

how do you calculate the accrual in practice? The
following framework may be of assistance:
 ACCRUAL SYSTEM (MPA)
Husband’s/Spouse A”s Wife’s estate/Spouse B’s
estate estate
Net value at dissolution
(time of divorce or death)
Minus: Net commencement
value at time of concluding
the marriage (as adapted for
decrease in value of money)

Minus: Excluded assets (as

per legislation)
Accrual of each estate

Claim: half of the difference

of accruals
 ACCRUAL SYSTEM (MPA)
Husband’s estate/Spouse Wife’s estate/Spouse B’s
A’s estate estate
Net value at dissolution A
(time of divorce or death) All H’s assets - liabilities All W’s assets - liabilities
Minus: Net commencement B
value at time of concluding Minus: (W’s assets
the marriage (as adapted for Minus: (H’s assets –
liabilities or nil if – liabilities or nil if
decrease in value of money) liabilities exceed
liabilities exceed
assets) as adapted assets) as adapted

Minus: Excluded assets (as CMinus - ex. Satisfaction/ Minus - ex. Satisfaction/
per legislation) pain/ inheritance pain/ inheritance
Accrual of each estate A–B–C=D A–B–C=E

Claim: half of the difference D – E = F/2

of accruals
H and W have been married for seven years, out of community
of property and including the accrual system.
At the time when the marriage was concluded, H owned a car
(R10 000) and a study loan (R10 000). W only had a few pieces
of furniture (R20 000) and a study loan of R5 000.
At the time of the divorce, H owned a house (valued at R800
000, but with a bond of R200 000) and a car (R200 000). He also
bought all the furniture in the house (valued at R50 000). He
received R20 000 in coins as a donation from an aunt (not to be
part of MPS). He lent his brother R30 000 (still to be repaid). W
owned a flat (R400 000), car (R100 000) and has some
investments in art (R40 000). She received R40 000 as an
inheritance from her father that is invested on the JSE in shares
(not to be part of the accrual). She received R10 000 for pain
and suffering after an accident that she keeps in cash.
Accept that, according to the consumer price index, money was
worth twice as much at the commencement of the marriage, as
at its dissolution.
Determine the accrual amount and identify who must pay the
accrual.
 Husband’s estate
Net value at dissolution R800 000 – 200 000 (house
(time of divorce or value – bond) =
death) R 600 000 Plus 200 000
(car) Plus 50 000 (furniture)
Plus 20 000 (coins) Plus 30
000 (owed to him)
= R 900 000
Minus: Net MINUS:
commencement value at R10 000 (car) – 10 000 (study
time of marriage loan)
(adapted for decrease in
value of money) = NIL
Minus: Excluded assets MINUS:
(as per legislation) R20 000 (donation)
Accrual of each estate 900 000 – NIL – 20 000
= 880 000
Claim: ½ of difference (880 000 – 500 000) / 2 = R190 000 H to W
of accruals
Wife’s estate
R 400 000 (flat) plus 100
000 (car) plus 40 000 (art)
plus 40 000 (shares) plus
10 000 (cash)
= R 580 000
MINUS:
R20 000 (furniture) – 5 000
(study loan) = 15 000
Adapted (x2)
= R30 000
MINUS:
R40 000 (inheritance) plus
R10 000 (Pain and
suffering) = R50 000
580 000 – 30 000 – 50 000
= 500 000
Another assignment

• Ryan and Susan were married in 1999. Out

of community of property. Their respective
estates are R0.00 at the initial value. They
decide to divorce. Net value of Ryan before
divorce is R1 000 000 while Alice is R500
000. Ryan inherited R100 000 from his
father Alice inherited a gift of R50 000.
• Calculate the accrual
Ryan Alice
Net value upon dissolution Net value upon dissolution
R100 000 R50 000

Minus net worth at time of marriage Minus net worth at time of marriage
R0: 00 R0: 00

Minus: Excluded assets Minus: Excluded assets R50 000

R100 000 (inheritance) (donation)

R900 000 – R450 000/2 R450 000 + R225 000 =R675

= R225 000
Thus
R900 000 – R450 000/2
= R225 000
• Ryan+ R900 000 – R22 500 =R675 000
• Alice R450 000 + R22 500 = R675 000
Assignment 2
• Hein van der Walt are married to Esmarie Viljoen. There are married
out of community of property with the accrual. When they got married
Hein had a car of R20 000 but owned the bank R60 000. Esmarie had
a old ring from her mother worth R60 000 at the time.
• After 15 years of marriage they decide to divorce. Hein's estate has
grown to R800 000 and Esmarie's to R1,2 million.
• Hein received a donation from Esmarie of R200 000.
• Esmarie in return was in a car accident and received R200 000 for
damages on the car and R100 000 for pain and suffering.
• Please calculate the accrual
Calculation of the accrual
Hein van der Walt Esmarie Viljoen
Net value before dissolution Net value before dissolution

Minus net worth at time of Minus net worth at time of marriage

marriage

Minus: Excluded assets Minus: Excluded assets

Accrual Accrual

? ?