key to the study guide - Name

Accrual and accrual
claim relate to value
of estate
subsistence of the marriage to share in the accrual of the other spouse's
estate). In Reeder v Softline the court recognised the difference between the
claim and the right. Ensure that you understand the remarks made by the
court in this regard. This case also provides authority for the fact that the
accrual and the accrual claim relate to the value of an estate, and not the
assets in that estate.
Finally, note that you need not study the discussion on pages 99±100 of
your prescribed textbook on renunciation of the accrual claim.
3 THE CALCULATION OF THE ACCRUAL
What is accrual? On page 100 of your prescribed textbook you will see that accrual is
basically the growth of a spouse's estate during the subsistence of the
marriage. This means that accrual is the amount by which the value of the
spouse's estate at the dissolution of the marriage exceeds the value of the
estate at the commencement of the marriage. In other words, accrual is the
difference between the net end value and the net commencement value of a
spouse's estate.
How is accrual calculated?
Stepstobefollowed
to calculate accrual
In terms of the Act, the accrual is calculated with reference to the net
value of the two estates at the commencement and at the dissolution of the
marriage. The net value means the value after all outstanding debts have
been paid, and it includes all amounts which are still owing to the estate.
In addition, certain assets are excluded from the accrual in terms of
sections 4 and 5 of the Matrimonial Property Act. This means that the
value of these assets is not taken into account in the calculation of the
accrual.
The steps which you must follow to calculate the accrual of each spouse's
estate, and any accrual claim, will now be explained to you briefly:
(1) First of all you have to determine the net end value of each estate
separately. Usually this is given to you in the facts of the question.
(2) Secondly, you must determine the net commencement or initial value
of each estate and subtract this from the respective net end values.
When determinating the commencement value of the spouses'
respective estates, you must take into account the provisions of the
Matrimonial Property Act which prescribes a number of methods for
proving the initial value of an estate. These methods are discussed on
pages 101±102 of the textbook. You should further note that the net
commencement values must be adapted according to the weighted
average of the consumer price index because the Act provides that the
depreciation of money must be taken into account. The net
commencement value of an estate must therefore be expressed in
terms of the value of money at the dissolution of the marriage.
Suppose, for instance, that at the time of entering into a marriage 20
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