Understanding the Disadvantages of Marriage With Accrual
Marriage with accrual is a popular matrimonial property system in South Africa. It offers fairness and protection for spouses by allowing them to share the growth in their estates during the marriage. While the system has several benefits, it also presents certain disadvantages that couples should understand before signing an antenuptial contract.
Explaining the Accrual Marriage System
Under the accrual system, each spouse retains ownership of their respective assets during the marriage. However, upon dissolution of the marriage through divorce or death, the spouse with the smaller estate gains a claim against the spouse with the larger estate for a portion of the difference.
Key Disadvantages of Marriage with Accrual
1. Accrual Can Create Complexity During Divorce Proceedings
Even though accrual aims to simplify asset distribution, it can complicate divorce proceedings. Determining the value of assets, liabilities, and excluded inheritances requires assessments, valuations, and financial disclosures that may take time.
When Complexity Becomes a Problem
- Where spouses disagree on the value of assets
- If one spouse owns businesses or property portfolios
- When assets are inherited or excluded from the estate
- In cases where valuations require experts
2. Business Owners May Be at a Disadvantage
Business owners often find the accrual system less favourable. A spouse who operates a profitable business may be required to share the increase in the value of their company, even if the other spouse was not involved in running or building it.
Potential Financial Implications for Business Owners
- Loss of shares or value through a financial payout
- Reduced liquidity due to settlement obligations
- Possible disruption to the operation or continuity of the business
3. Difficulty in Proving Initial Values
At the start of the marriage, spouses can declare the value of their estates in writing. However, many fail to do so, and this oversight can cause problems during divorce.
Challenges When Initial Values Aren’t Declared
- Spouses may dispute how much each person contributed before the marriage
- Courts may rely on estimates that do not reflect true values
- A spouse could receive less than they would have if records were kept accurately
4. Accrual Does Not Protect Against Debt Accumulation
While accrual focuses on the growth of estates, it does not shield spouses from the effects of debt. If one spouse accumulates significant liabilities during the marriage, the net accrual calculation may reduce the other spouse’s benefit.
5. Emotional and Financial Tension During Divorce
Accrual may increase conflict in contested divorces, particularly when assets such as businesses, pensions, or properties form part of the calculation.
When Marriage with Accrual May Not Be Ideal
Couples may consider alternatives when:
- Large business assets exist
- One spouse expects significant inheritances
- Financial privacy is a priority
- Complex asset structures are involved
- There is a desire to keep estates strictly separate
Frequently Asked Questions
- Can a couple exclude certain assets from accrual?
Yes, assets such as inheritances or specified property can be excluded in the antenuptial contract. - Does accrual require both spouses to disclose finances?
Yes. Full financial disclosure is necessary for calculating estate values during divorce or death. - Can business assets form part of accrual?
Yes, unless specifically excluded. This is often where disputes arise in divorces involving entrepreneurs. - Can spouses change their marital regime later?
Yes, but it requires a High Court application and consent from both spouses. - Is accrual always beneficial?
Not always. Its suitability depends on assets, financial goals, and individual circumstances.
Need Legal Advice? Contact JA Attorneys
JA Attorneys specialises in matrimonial law, antenuptial contracts, and marital property systems. Professional legal guidance ensures that couples understand the long-term legal and financial implications before entering into marriage. The firm offers tailored advice that protects both spouses’ rights and interests.
Take the Next Step
Choosing the right matrimonial property regime is a decision with lasting effects. JA Attorneys provides clarity, legal protection, and personalised support for couples preparing for marriage or seeking advice on marital property implications.
Contact JA Attorneys today to book a consultation and secure your future with confidence.
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