Let's look at a practical example of an accrual calculation. Let say a couple got married in early 2000 with an ante nuptial contract which included the accrual system.
This is how things stood at the beginning of the marriage:
1. Husband owned a home worth R350,000 at the time and also a car worth R120,000.
2. Wife owned furniture worth R60,000 and a car worth R85,000.
3. Their combined assets stood at R615 000, with the husband responsible for R470 000 thereof and the wife the remaining R145 000.
4. Neither had any liabilities.
An accrual calculation should the marriage dissolve in 2010:
The husband's home is now worth R1,500,000 and his latest car is valued at R350,000.
The wife in the meantime had built up a collection of furniture worth R450, 000 and also owned a new car worth R240,000.
Her dad had also left her a holiday home which was currently worth R750, 000
Together their assets equaled R3, 290, 000 with the husband's share of that being R1, 850, 000 and the wife's share R1, 440, 000.
Neither of them had any liabilities.
Husband's assets: R1,850,000
Wife's assets: R1,440,000
Couple's total assets: R3,290,000
This is how the accrual claim is calculated:
The couple needs to find out what the weighted consumer price index (CPI) rate was at 2000 when they got married and also now in 2010 when they divorce. (Please download number 16 on the above link in order to see the information as published by Stats SA).
February 2000 : 60,40
June 2010 : 111,50
They need to adjust their asset values at the beginning of the marriage in order to take into account inflation.
Husband: R470, 000 x 111,50 ÷ 60, 40 = R867, 632
Wife: R145, 000 x 111,50 ÷ 60, 40 = R267, 674
Now both husband and wife know how much their original assets are worth in today's money.
They now calculated their accrual claim.
Net value of assets/estate R1,850,000 R1,440,000
Less: Inheritance R 750,000
Equals: Subtotal R1,850,000 R 690,000
Value at beginning of marriage R 867,632 R 267,674
Equals: Net value of assets R 982,368 R 422,326
Straight away they can both see that the wife, with the smaller estate, has an accrual claim against the husband.
They now need to determine the difference between each other's respective assets and award half of that to the wife since hers is the smaller of the two.
R982,368 – R422,326 = R560,042 as the difference
R560,042 ÷ 2 = R280,021
The wife has a claim against the husband's assets for an amount of R280,021 when they get divorced.