Antenuptial Contracts: With or Without the Accrual System?

Antenuptial contracts (ANCs) determine the financial status of a marriage - whether it will be in community of property or out of community of property, with or without the accrual system.  

It must be signed by the marrying couple, two witnesses, and a notary public, then registered in the Deeds Registries office within the required timeframe.

The accrual system calculates how much the spouse with the larger estate must pay the spouse with the smaller estate if the marriage ends through death or divorce. It only takes into account property acquired during the marriage. Without the accrual system, each spouse keeps their own estate, consisting of property and debts acquired prior to and during the marriage, with nothing shared between them. The accrual system is based on the idea that each spouse should take out the value of assets they brought into the marriage and share what they built together during the marriage. However, it only applies if the marriage ends and cannot be claimed while the couple is still married.

Whether to include the accrual system in the ANC is a decision left to the couple, but it is crucial that they consult with a neutral and professional lawyer who can advise and mediate the agreement. 

Emotions and personal biases can affect the outcome, especially if one spouse has significantly more assets than the other. Please note that this article is for informational purposes only and should not be used or relied upon as legal or professional advice. 

Contact Louwrens Koen Attorneys for specific and detailed advice.