How does one Calculating the accrual? - answer-1

PVL2601 - 13. The Accrual System What is the Accrual System? - answer-Fundamental idea - one spouse contributes financially & otherwise to the growth of the other spouses' estate & should therefore be entitled to share in that spouse's estate on the dissolution of the marriage. Donations between spouses are allowed. Accrual system automatically applies to all marriages that do not specifically exclude it concluded on or after 1 November 1984 & for black marriages on or after 2 December 1988. How does one Calculating the accrual? - answer-1. End value - commencement value (CPI) - assets which do not form part of accrual. 2. The smaller estate - larger estate / 2 = accrual claim 3. Commencement value - usually state value in ANC, deemed nil if liabilities are more than assets, if no value is declared it is deemed to be nil. Which Assets do not form part of accrual? - answer-1. Non patrimonial damages a spouse received during marriage. 2. Assets excluded in the ANC, proceeds of such assets also excluded. 3. An inheritance, legacy or donation one spouse receives from a 3rd party. 4. Donations inter vivos - between living spouses. What are the Advantages of Accrual System? - answer-1. Spouses share in the accrual of each others estate. 2. Whatever amassed prior to marriage is not shared. 3. Spouses are not liable for each others debts. 4. Spouses free to enter into contracts. 5. Administration of each others estate is uncomplicated...