Commencement values are one of the most important parts of a prenup with accrual. They record the net value of each spouse’s estate at the start of the marriage. If the values are wrong, missing or unsupported, the accrual calculation can become difficult later.
Many couples focus on whether they want accrual or no accrual, but then rush the numbers. That is a mistake. Accrual depends on comparing the value of each estate at the start and at the end of the marriage.
The short answer
A commencement value is the starting net value of a spouse’s estate for accrual purposes. It should reflect assets less liabilities at the start of the marriage. If accrual applies, that starting value becomes part of the later calculation when the marriage ends by divorce or death.
If you are signing an ANC with accrual, do not guess the numbers and do not leave proof for later.
Why commencement values matter
The accrual system is meant to share growth during the marriage, not necessarily everything each spouse already had before the marriage. Commencement values help identify the starting point.
If one spouse owns property, investments, a business, shares, loan accounts or other assets before marriage, those values should be considered properly. If one spouse has debts, those liabilities also matter.
| Item | Why it matters | Proof to prepare |
|---|---|---|
| Immovable property | Property can be a major starting asset. | Title deed, bond statement and valuation. |
| Business interests | Shares, loan accounts and member’s interests can be disputed later. | Company documents, financial statements and valuation support. |
| Investments and savings | These may form part of the starting estate. | Statements as close as possible to the marriage date. |
| Debt and liabilities | Net value means assets less liabilities. | Loan agreements, credit statements and suretyship records. |
| Excluded assets | Some assets may need specific treatment in the ANC. | Clear list, wording and supporting records. |
What happens if no value is declared?
South African law allows a party to declare a commencement value in the antenuptial contract. If that is not done, there is a statutory route to declare it in a signed, notarised statement before marriage or within six months after marriage.
If the commencement value is not declared and the contrary is not proved, the value may be deemed to be nil. That can become expensive if one spouse later has to prove what they owned at the start of the marriage.
Nil commencement value is not always harmless
Sometimes a nil commencement value is accurate. For example, a person may genuinely have more liabilities than assets at the start of the marriage. But using nil because it is quick or convenient can be risky where there are real assets.
The better approach is to record values carefully and keep proof. If a value is uncertain, get advice rather than guessing.
Commencement values and debt
Debt affects net value. If one spouse enters the marriage with loans, overdrafts, tax debt, business debt or suretyship exposure, those liabilities should be understood before the ANC is signed.
For the debt-risk guide, read prenup and debt in South Africa.
Commencement values and excluded assets
Some assets may be excluded from accrual in the ANC. The wording matters. Poorly drafted exclusions, vague asset descriptions or weak records can lead to uncertainty later.
This is especially important for property, business interests, trusts, family donations, inheritances and assets owned before the marriage.
Checklist before signing an ANC with accrual
- List each spouse’s assets and liabilities.
- Calculate realistic net commencement values.
- Collect proof close to the marriage date.
- Identify assets that may need specific exclusion wording.
- Record business interests, loan accounts and suretyships.
- Keep copies of valuations, statements and signed documents.
- Get advice if the values are complex or uneven.
When to speak to SD Law
Get tailored advice if either spouse owns property, has business interests, expects inheritance, has significant debt, holds trust interests, wants to exclude assets, or is unsure how to calculate the starting estate value.
For tailored ANC advice, speak to SD Law’s antenuptial contract attorneys.
Related prenup guides
- ANC with accrual vs without accrual
- Types of marriage contracts in South Africa
- Prenup checklist South Africa
- Prenup and inheritance in South Africa
- Prenup for business owners in South Africa
FAQ: commencement values and accrual
What is a commencement value in a prenup?
It is the net value of a spouse’s estate at the start of the marriage for accrual purposes. It is usually assets less liabilities.
Do both spouses need commencement values?
If accrual applies, both spouses should consider their starting estate values and keep proof. The values may be simple or complex depending on the facts.
What if my commencement value is zero?
That may be correct if your liabilities exceed your assets or you have no meaningful starting estate. But do not use zero merely because it is convenient.
Can commencement values be declared after the wedding?
There is a statutory route for a signed, notarised statement before marriage or within six months after marriage. Get advice before relying on a late or informal record.
Why does proof matter?
Because the accrual calculation may be tested years later. Bank statements, valuations, bond records and business documents can become important evidence.
General information only. This page is not financial, tax, valuation or litigation advice for your specific facts.