Choosing the Right Matrimonial System: Part 2 – A Closer Look at Marriage out of Community of Property with Accrual

Understanding the Legal Aspects of Matrimonial Systems in South Africa

In our previous blog post, we explored the “Marriage in Community of Property” system, shedding light on the legal implications of merging individual estates. Now, we turn our attention to the “Marriage out of Community of Property with Accrual” system. This matrimonial arrangement offers couples a fair and balanced approach to sharing their assets while maintaining separate estates during their marriage. Clynton Steven Poole Attorneys brings you Part 2 of our blog series, providing essential insights for couples considering this matrimonial system in South Africa.

What is Marriage out of Community of Property with Accrual?

Marriage out of Community of Property with Accrual is a popular matrimonial system in South Africa, especially for those seeking to protect their pre-marital assets while still enjoying the benefits of shared growth during the marriage. Under this system, each spouse retains separate estates that encompass all assets and liabilities acquired before and during the marriage. However, the growth or increase in the value of assets during the marriage is shared equally between the partners upon divorce or death.

The Accrual System Explained

The accrual system ensures that both spouses share in the accumulation of wealth during the marriage, regardless of their individual financial contributions. It promotes fairness and equity, allowing partners to benefit mutually from each other’s success and efforts during the marriage. To implement the accrual system, couples need to draft a formal antenuptial contract (ANC) before their marriage, specifying the terms and conditions of the accrual.

Advantages of Marriage out of Community of Property with Accrual

1. Protection of Pre-marital Assets: The accrual system safeguards each partner’s pre-marital assets, ensuring they retain ownership of those assets in the event of divorce or death.
2. Shared Growth: Couples benefit from the joint growth of their estates, promoting a sense of partnership and teamwork in building wealth during the marriage.
3. Equitable Distribution: In case of divorce or death, the partners share the wealth accumulated during the marriage, providing financial security and fairness.

Important Considerations

While Marriage out of Community of Property with Accrual offers many advantages, it’s essential for couples to consider certain aspects:

1. Defining the Accrual: The antenuptial contract must clearly outline how the accrual will be calculated to ensure a smooth process during divorce or death.
2. Valuation of Assets: Accurately valuing assets at the commencement of the marriage is crucial for calculating the accrual.
3. Legal Guidance: Seeking assistance from a qualified attorney is essential to draft a comprehensive and legally binding antenuptial contract that meets the couple’s specific needs.

Marriage out of Community of Property with Accrual provides a balanced approach to financial sharing, protecting pre-marital assets while allowing couples to mutually benefit from the growth during their marriage. The accrual system promotes fairness and financial security, ensuring that both partners’ contributions are acknowledged and valued. However, it is crucial for couples to seek the guidance of an experienced attorney to draft a well-defined and legally sound antenuptial contract that caters to their unique circumstances.