Commencement Values, Explained

If your antenuptial contract includes the accrual system, each spouse declares a “net commencement value” — the value of their estate at the start of the marriage. This figure is the baseline against which growth is later measured. Getting it right matters: it directly affects the accrual calculation when the marriage ends.

What is the net commencement value?

The net commencement value is the value of each spouse’s estate at the date of marriage, after deducting all liabilities (debts). It is declared in the antenuptial contract itself, or in a schedule annexed to it.

The formula:

Net commencement value = total assets − total liabilities

What counts as an asset

Cash and bank balances
Immovable property (homes, land, units — at fair market value)
Vehicles, at trade-in value
Investments — unit trusts, share portfolios, retirement annuities, endowments
Business interests — share value or member’s interest, including shareholder loan accounts
Valuable household contents, artwork, jewellery (where significant)
Loans you have advanced to others

What counts as a liability

Bond on immovable property
Vehicle finance
Personal loans, credit-card balances, store cards
Suretyships you have signed (where likely to be called)
Tax owing
Any other contractual debts

If you declare zero

The Matrimonial Property Act provides that if no commencement value is declared, it is deemed to be zero. Many couples deliberately declare zero or a nominal amount — especially where neither party has significant pre-marriage wealth.

The practical effect of declaring zero: the entire net value of your estate at the end of the marriage will count as accrual. Whatever you brought into the marriage will, after CPI adjustment, count as nothing — everything is shareable.

This is fine for couples without significant pre-marriage assets. But for couples where one or both bring substantial wealth, declaring an honest, accurate commencement value protects what you brought and ensures only the growth during the marriage is shared.

The CPI adjustment

The commencement value is fixed in nominal Rand on the date of marriage. To prevent inflation eroding its real value, the Act provides that the figure is adjusted upwards using the Consumer Price Index (CPI) at the date of dissolution.

Example: a commencement value of R400,000 declared in 2024. By 2034, if cumulative CPI inflation has been roughly 60%, the adjusted commencement value is R400,000 × 1.6 = R640,000. That R640,000 is the figure deducted from your net estate at dissolution to determine your accrual.

How accurate must the figure be?

Honest and reasonable. You do not need a formal valuation of every asset, but the figure should reflect a fair best estimate of net worth on the wedding day.

Inflating your commencement value to reduce your eventual accrual obligation is a form of fraud against your future spouse and is unenforceable to the extent of the inflation. Equally, deliberately under-declaring to seem more generous is a poor strategy — you are giving up legitimate protection.

The section 6(1) statement

Section 6 of the Matrimonial Property Act allows for a separate declaration of net commencement value — signed within six months of the marriage and lodged at the Deeds Office. This is useful where the commencement values have not been finalised at the date of contract signing (for example, where one spouse is overseas and asset details are still being assembled).

In practice we usually capture the figures in the contract itself. The section 6(1) mechanism is the back-up.

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We help you arrive at sensible commencement values during drafting. No formal valuations needed — just an honest assessment of what you each own and owe on the wedding day.

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