In Manelis v Manelis, the SCA confirmed that commencement values in antenuptial contracts are binding unless challenged on recognised legal grounds.
Introduction
The Supreme Court of Appeal (SCA) has brought clarity to a long-standing debate in South African family law through its decision in Manelis v Manelis. The Court confirmed that when parties declare the commencement value of their estates in an antenuptial contract, those values are binding and conclusive, unless challenged on established legal grounds such as fraud, misrepresentation, duress, or mutual error.
This judgment provides critical certainty for couples married out of community of property subject to the accrual system, and it reaffirms the principle of contractual certainty in the context of the Matrimonial Property Act 88 of 1984 (MPA).
Background of the Case
The parties married out of community of property with the accrual system. In their antenuptial contract, the husband declared a commencement value of R68.7 million, while the wife declared a nil estate.
When divorce proceedings began, the wife challenged her husband’s declared value, alleging it was overstated and claiming an accrual benefit of approximately R18 million. The High Court dismissed her claim, prompting an appeal to the SCA.
The core issue was whether the husband’s declared commencement value served only as prima facie proof (capable of rebuttal) under Section 6(3) of the MPA, or whether it was conclusive proof binding on both parties.
The Court’s Findings
The SCA undertook a detailed analysis of Section 6 of the MPA and relevant case law. It drew a distinction between:
- Declared commencement values in antenuptial contracts, and
- Separate commencement value statements filed under Section 6(1) when no declaration is made in the contract.
The Court held that Section 6(3) applies only to the second scenario. Where commencement values are expressly declared in an antenuptial contract, those figures are contractually binding.
In reaching this conclusion, the Court rejected the reasoning of earlier judgments such as Thomas v Thomas and TN v NN, which treated such declarations as rebuttable. Instead, it aligned with Olivier v Olivier, confirming that antenuptial contracts are governed by the common law of contract. This means that declared values are enforceable unless a party can prove recognised vitiating factors such as fraud or misrepresentation.
Application to the Facts
On the facts of Manelis v Manelis, the husband’s commencement value of R68.7 million, adjusted for inflation to R129 million at the time of divorce, stood as binding.
The wife’s own expert valued the husband’s estate at R117 million, less than the adjusted commencement value. Because his estate had not grown beyond the commencement value, no accrual claim could succeed. The wife’s challenge therefore failed.
Key Lessons for Couples and Practitioners
This judgment has important implications for anyone entering into, or litigating, antenuptial contracts:
- Declarations Are Final: Once a commencement value is declared in an antenuptial contract, it cannot be challenged lightly.
- Grounds for Challenge Are Limited: Only recognised common-law defences such as fraud, mistake, or duress can be relied upon.
- Contractual Certainty: The SCA reinforced the sanctity of contract, ensuring predictability in matrimonial property law.
- Practical Advice: Couples should take great care in valuing their estates at the commencement of marriage, and legal practitioners should ensure clients understand the long-term implications of these declarations.
Conclusion
The SCA’s ruling in Manelis v Manelis is a turning point in matrimonial property law. By affirming that commencement values declared in antenuptial contracts are binding and enforceable, the Court has eliminated ambiguity and strengthened contractual certainty in the accrual system.
For couples, the message is clear: there is no room for regret once commencement values are recorded in a marriage contract. For practitioners, the case underscores the need for careful drafting and accurate financial disclosure when advising clients entering into antenuptial agreements.
At Mayet & Associates, we advise clients on antenuptial contracts, accrual calculations, and matrimonial property disputes. Whether you are preparing for marriage or navigating divorce, our team provides expert legal guidance to protect your financial interests under South African law.
