The prohibition against donations between spouses was repealed by the Matrimonial Property Act. Donations between spouses do not form part of the accrual, unless the parties agree otherwise in the contract Donations set out in the antenuptial can serve as proof on the insolvency of one of the spouses that the property in question belongs to the other solvent spouse.
This is of particular advantage to the spouses when the goods in question are attempted to be attached. Where the accrual systems is excluded in terms of the contract, the “breadwinner” spouse can out of consideration of fairness and to acknowledge the other spouse's contribution to the marriage, make donations in favor of that spouse. No donation tax is payable in respect of the value of property which is donated to the spouse of the donor under a duly registered antenuptial/postnuptial contract.
No estate duty is payable on the value of property donated to or for the benefit of the spouse of the donor under a duly registered antenuptial/postnuptial contract.
