South Africa’s (SA’s) legal landscape is undergoing a significant shift as it drafts laws to financially protect spouses and streamline marriage laws. For high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals and families, these reforms are a timely reminder that wealth planning is not a static exercise, but one that requires proactive adaptation.
The changing legal environment comes at a time when divorce is also becoming more prevalent. According to Statistics South Africa’s Marriages and Divorces report published in March 2026, 24 202 divorces were granted in South Africa in 2024, an increase of 8.9% from 22 230 in 2023. The crude divorce rate also rose to 39 divorces per 100 000 people, reinforcing the importance of ensuring that family wealth structures are designed to withstand significant changes in personal circumstances.
“As divorce and family laws evolve, affluent families need to prioritise the protection of their wealth by putting guardrails in place in terms of their assets. It’s not taking anything away from the marriage, it’s about cultivating open communication from the very beginning and understanding that every marriage will end in an exit one day, regardless of whether it is by death or divorce,” says Citadel Advisory Partner, Kirsten Smit.
A SHIFT IN LEGAL PRECEDENT AND ACCRUAL
Recent South African court developments indicate a move toward ensuring the accrual system is applied more rigorously and fairly, with a particular focus on uncovering assets that may have been moved into a trust during the divorce trial in order to reduce the accrual in the estate. The courts have held that assets need to be included accurately in the accrual calculation.
“The courts and attorneys will now have to make sure that the accrual system really is applied fairly and that assets can be recovered from trusts when applicable,” says Smit. She further cautions that “interim relief measures, such as Rule 43, which allows a spouse to apply for temporary maintenance, child-related relief or a contribution towards legal costs while divorce proceedings are ongoing, can set maintenance expectations that are difficult to manage and therefore, these measures need to be managed with great care.”
ESTABLISHING GUARDRAILS: THE ANTENUPTIAL CONTRACT
For families looking to protect generational wealth, the planning must begin before the “I do”. Smit emphasises that a well-structured Antenuptial Contract (ANC) is the most effective way to ensure fairness regarding assets brought into a union. Accrual can then be included or excluded dependent on circumstances.
“The best start to a marriage is actually to agree to have open communication around finances from the beginning,” says Smit. She highlights that “for families with established wealth, it is crucial to formally write clauses into the ANC that ring-fence and exclude inheritances from future accrual claims. “Under South African law, inheritances are automatically protected and kept separate from your spouse, but the exact mechanism depends on the terms of the ANC you choose – whether with or without accrual – and you can lose protection under certain circumstances. It is advisable to discuss how inheritances will be dealt with in your ANC with your attorney.”
THE ROLE OF FAMILY TRUSTS AND PROFESSIONAL TRUSTEESHIP
Smit says: “The efficacy of a family trust as a wealth preservation tool often depends on its initial design and the quality of its oversight. Many affluent individuals overlook the necessity of a well-structured trust deed that can evolve with changing legislation.”
“Trust deeds need to be set up properly from the start,” Smit explains. She advocates for “strong, independent professional trustees who are aware of family dynamics, legislative changes and can tweak guardrails if needed”. She further notes that “it is often necessary to ‘restrict trust assets to the bloodline’ through careful beneficiary designation and succession planning.”
SIMPLIFYING THE COMPLEXITY
Smit says one of the most common oversights among affluent families is allowing their financial structures to become overly fragmented and opaque.
She has observed that “there is often complexity going on which needs to be untangled as well as simplified and in doing so, unlock efficiencies”. She believes that simplification is empowering and reduces the immense emotional stress for families. “People tend to think that complexity is a good thing, but when you create more elegant, manageable solutions, you are truly adding value, transparency and fairness to everyone’s lives.”
CONCLUSION: ACT NOW TO SECURE THE FUTURE
Smit says that “As SA’s divorce laws and the courts’ interpretations of it continue to evolve, the message to HNW and UHNW families is clear: proactive planning and regular reviews are non-negotiable.”
Smit concludes with the following advice: “Firstly, you need open communication on the financial aspects of life within the family. Secondly, you need strong professional advisors who can provide objectivity and who are on the absolute top of their game when it comes to legislation, tax, investment management and advice.”
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