Antenuptial Contract with Accrual – Everything You Need to Know

An Antenuptial Contract with Accrual is a legal agreement between two people who are about to get married. It outlines the terms and conditions of their marriage and helps to protect the individual assets of each spouse. This type of contract is recognized in South Africa and is commonly used by couples who want to ensure their financial independence and security in the event of a divorce.

What is an Antenuptial Contract with Accrual?

An Antenuptial Contract with Accrual is a legal agreement that outlines how the assets and liabilities of each spouse will be divided in the event of a divorce. It is a way for couples to protect their individual assets and financial security. An accrual system is used to ensure that both parties benefit equally from the increase in their joint estate during the marriage.

How does it work?

The accrual system is based on the idea that both spouses should share in the growth of their joint estate during their marriage. The joint estate is the total value of both spouses` assets and liabilities at the start of the marriage, and any increase in value during the marriage is shared equally between them. If the marriage ends in divorce, the increase in the joint estate is divided equally between the two spouses.

For example, if the joint estate at the start of the marriage is worth R1 million and it increases to R2 million during the marriage, the increase of R1 million will be divided equally between the two spouses. This means that each spouse will receive R500,000 of the increase in value of the joint estate.

Why choose an Antenuptial Contract with Accrual?

An Antenuptial Contract with Accrual is a popular choice for many couples because it offers financial protection and security. It allows each spouse to retain their individual assets and provides a fair way to divide any joint assets or liabilities that are acquired during the marriage. This type of contract also provides clarity and certainty in the event of a divorce, which can help to reduce stress and conflict.

However, it is important to note that an Antenuptial Contract with Accrual must be prepared and signed before the wedding takes place. If it is not signed before the wedding, the couple will automatically be married in community of property, which means that all assets and liabilities are shared equally between them.

Conclusion

An Antenuptial Contract with Accrual is a legal agreement that offers financial protection and security for couples who are about to get married. It allows each spouse to retain their individual assets and provides a fair way to divide any joint assets or liabilities that are acquired during the marriage. However, it is important to understand that this type of contract must be prepared and signed before the wedding takes place. If you are considering an Antenuptial Contract with Accrual, it is advisable to seek professional legal advice to ensure that the contract is prepared correctly and to your liking.

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