Antenuptial Contract With Accrual In South Africa Explained
Antenuptial contract with accrual refers to one of three civil marriage regimes recognised under South African law. Most commonly known as “Marriage out of Community of Property subject to the Accrual System”, this system requires an antenuptial agreement to be drawn up by an attorney before the date of marriage. This legal agreement supersedes the “In Community of Property Civil Marriage Regime” and must be registered with by the Department of Home Affairs.
In terms of this marriage regime and or system, it is important to note that each marriage regime has its own advantages and disadvantages and will largely depend on the couple’s history and needs before the marriage. For this article, we will briefly explain the main benefits and drawbacks of being married out of community of property with the accrual system. For more information on the different types of antenuptial contracts/marriage regimes to choose from, please contact us.
Advantages of Antenuptial contract with accrual:
- Married couples share assets accumulated during the marriage and the spouse with the smaller estate benefits;
- Assets obtained before getting married can be excluded;
- Each spouse keeps his/her own assets and has their discretion on how to deal with their finances;
- Married couples are not liable for each other’s debt. If one spouse becomes insolvent, creditors cannot touch the assets of the solvent spouse.
Disadvantages of Antenuptial contract with accrual:
- Economically stronger spouses have to share the profits that he/she made during the marriage;
No one marriage regime can be a one-size-fits-all solution. Each couple’s circumstances need to be investigated before recommending the marriage regime to best suit the prospective married couple. Contact our professional and discreet antenuptial contract lawyers for more information and or to book a consult.