Binding Commencement Values in Antenuptial Contracts: What the SCA's Judgment Means for Divorcing Spouses

 

A discussion of D.C.M v C.C.M

Written by Roy Bregman, admitted attorney with over 51 years' experience in family and matrimonial law.
Read more about Roy Bregman

Introduction: The Legal Significance of Commencement Values in ANCs

In South Africa, when couples marry out of community of property with accrual, the value of each spouse’s estate at the start of the marriage (the “commencement value”) plays a central role in calculating how assets will be divided upon divorce. These values are typically recorded in an antenuptial contract (ANC), a binding legal agreement signed before marriage.

Until recently, it remained uncertain whether either party could later dispute a commencement value recorded in an ANC. The Supreme Court of Appeal (SCA) has now addressed this issue in the landmark 2025 case of D.C.M v C.C.M, bringing much-needed clarity and contractual certainty to the legal framework surrounding accrual calculations in divorce proceedings.

Understanding the Accrual System and Commencement Values

Under the Matrimonial Property Act 88 of 1984, couples married with the accrual system each retain their own estates during the marriage, but any increase in value (the "accrual") is shared equally upon divorce. The calculation requires two values for each spouse:

• Commencement value: The net value of a spouse's estate at the date of marriage.
• Estate value at dissolution: The value at the time of divorce or death.

The difference between these two values represents the accrual, and the spouse with the smaller accrual may claim half the difference from the other.

Thus, the accuracy and integrity of the commencement value are essential to a fair division of assets.

Case Law Discussion: D.C.M v C.C.M (2025)

Facts of the Case

The parties were married in 2009 under an ANC with accrual. The contract declared that the husband’s estate was worth R68.7 million and the wife’s estate was valued at zero.

Upon their divorce in 2022, the wife challenged the commencement value recorded in the ANC. She argued that her husband had overstated his wealth at the time of marriage and based on her calculations, his estate had grown significantly. She claimed R18 million as her share of the accrual.

The husband denied this, stating that his estate had in fact shrunk since marriage and was now worth only R11.5 million. As such, he claimed there was no accrual to share.

The High Court accepted the husband’s position, and the wife appealed to the SCA.

Legal Issues and the SCA’s Findings

At the heart of the case was Section 6 of the Matrimonial Property Act, particularly subsection (3), which provides that a commencement value declared after the marriage serves only as prima facie (rebuttable) proof of the actual value unless proven otherwise.

The wife attempted to apply this principle to the value in the ANC. However, the SCA clarified that Section 6(3) does not apply to commencement values declared in an antenuptial contract. Such values are considered final and binding unless one of the following grounds is established:

• Fraud
• Duress or undue influence
• Material mistake

The wife had not alleged any of these. Consequently, the SCA held that she could not dispute the ANC’s recorded value years after the fact.

In reaching its decision, the SCA reviewed conflicting past judgments. Some earlier courts had allowed commencement values in ANCs to be challenged. Others treated them as binding. The SCA resolved this inconsistency by aligning with the latter interpretation—giving weight to the sanctity of contract.

Final Judgment

The SCA confirmed that the husband's declared commencement value of R68.7 million (adjusted to R129 million to account for inflation) was binding.

Since his estate at divorce was worth less than that, there was no accrual.

The wife’s R18 million claim was dismissed, and she was ordered to pay the legal costs of the appeal.

Why This Case Is Important

This judgment strengthens legal certainty in family law, affirming that what is recorded in an ANC will be upheld—unless fraud, mistake, or coercion is clearly established. It reinforces the idea that antenuptial contracts are binding legal instruments, not mere formalities.

Practical Takeaways for Clients and Legal Practitioners

For Attorneys

• Advise clients to accurately assess and record commencement values in the ANC.
• Warn them that these values are binding and can rarely be challenged later.
• Ensure proper financial disclosures before signing the ANC.

For Clients and Couples

• Don’t guess your estate’s value—get it properly evaluated before marriage.
• Understand that once you sign the ANC, you are likely locked into those figures.
• Speak to a lawyer before marriage to ensure full transparency and fairness.