Accrual Example

Mr T and Mrs T were married on the 1st of November 1994 with an ante-nuptial contract
excluding community of property and profit and loss. They were married for twenty (20) years
when Mrs T suddenly died of a heart attack a week ago.
You are provided with the following facts that relate to Mr T:
When he got married he had a bicycle worth R100 and a study debt of R1 500.
Mr T has an estate worth R700 000. Included in this amount is a house worth R650 000 and a
savings account of R35 000 at ABSA Bank. Part of his savings account money is a donation of
R10 000 which he received from his wife. His estate also includes a car he inherited from his
grandfather that is worth R15 000.
Mr T owes the bank R120 000 for his house, and he owes R5 000 to a friend for an overseas
trip he had been on.
You are provided with the following facts that relate to Mrs T:
When she got married she had a savings account of R1 000 which was recorded in their ANC.
She had no debts.
When she died her estate was worth R100 000. This includes R10 000 she inherited from her
mother. Also included as part thereof is her car worth R37 000 which Mr T had given to her as a
gift (donation). Mrs T has no debts.
Instruction: Does the estate of Mrs T have an accrual claim against the estate of Mr T? Do the
necessary calculations to determine accrual.
NB: Clearly indicate all calculations you make and explain the steps you take.
Take note that the consumer price index is 1:3 (R1 in 1994 = R3 in 2014).

Because Mr T and Mrs T were married after 1st of November 1984 with an ante-nuptial
contract excluding community of property, sec 2 of the Matrimonial Property Act 88 of
1984 applies, making their marriage subject to the accrual system.
In terms of the accrual system, the spouse who has the least estate growth is entitled to
half the difference in accrual at dissolution of the marriage.

Calculate the accrual of Mr T:

Step 1: Calculate the net end value
Value of all assets at dissolution
Minus: Donation (wife)
Inheritance (car)
Debt (bank)
Debt (friend)
Total
Calculation:

Assets at dissolution
Minus (deductions)
Mr Ts net end value

R700 000

R 10 000
R 15 000
R120 000
R 5 000
R150 000
R700 000
R150 000
R550 000

Step 2: Calculate the net commencement value

Mr T started his marriage with more debts than assets, so his net commencement value is nil
(R0) = R0
Step 3: Calculate Mr Ts accrual
Net end value
Minus net commencement value
Mr Ts accrual

R550 000
R
0
R550 000

Calculate the accrual of Mrs T:

Step 1: Calculate the net end value
Value of all assets at dissolution
Minus: Donation (car)
Inheritance (mom)
Total
Calculation:

R100 000

R 37 000
R 10 000
R 47 000

Assets at dissolution
Minus (deductions)
Mrs Ts net end value

R100 000
R 47 000
R 53 000

Step 2: Calculate the net commencement value

Mrs T started her marriage having R1000. Applying the CPI of 1:3 we can calculate her net
commencement value: 1000 x 3 = R3000 (net commencement value)
Step 3: Calculate Mrs Ts accrual
Net end value
Minus net commencement value
Mrs Ts accrual

R 53 000
R 3 000
R 50 000

Because Mrs T had the least accrual, her estate is entitled to half the difference in
accrual
Difference in accrual: Accrual of Mr T minus Accrual of Mrs T
: R550 000

R50 000
: R500 000 (difference in accrual)
Mrs Ts estate is entitled to half of this amount (half of the difference in accrual)
R500 000 2 = R250 000
Mrs T will thus receive R250 000 from the deceased estate of Mr T.