Marriage Out of Community of Property WITH Accrual. The Most Popular Choice for Younger Couples

The "Accrual System" is the modern gold standard for South African marriages. It combines total financial independence during the marriage with equitable sharing if the marriage ends.

How the Accrual System Works

When you marry Out of Community of Property, you sign an Antenuptial Contract (Notarial Deed) before your wedding. This creates two separate estates, ensuring that:

• Asset Protection: You retain complete freedom to deal with your property as you choose.
• Debt Shielding: Under the Insolvency Act, if one spouse is declared insolvent, the other spouse’s assets are protected from creditors. You are never liable for your partner's business or personal debts.

The "Fairness Formula" (Accrual Explained)

The philosophy of the accrual system is simple: what you brought into the marriage stays yours, but what you build together is shared.

1. Commencement Value: At the start of the marriage, each spouse declares the value of their existing assets in the Antenuptial Contract.
2. Growth Sharing: Upon dissolution of the marriage (by death or divorce), the "accrual" (increase in value) of both estates is calculated. The spouse whose estate grew less has a claim for half the difference between the two estates' growth.

Why This is the "Best of Both Worlds"

We often recommend this regime to younger couples and business owners because it provides:

• Risk Mitigation: Your family home can be protected from business creditors.
• Economic Equality: It protects the spouse who might earn less or stay at home to raise children, ensuring they are not left financially disadvantaged.
• Total Autonomy: No consent is required from your spouse for commercial transactions, property purchases, or signing contracts.

Expert Note: At Louwrens Koen Attorneys, we can customize your contract to include or exclude specific assets—such as a family business, future inheritances, or existing property—to ensure your "Fairness Formula" is perfectly tailored to your needs.

1. COMPARISON TABLE ANTENUPTIAL CONTRACTS
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3. Feature	In Community of Property	Out of Community (WITH Accrual)	Out of Community (WITHOUT Accrual)
   Legal Status	One Joint Estate (Default)	Two Separate Estates	Two Separate Estates
   Before Marriage	No ANC required.	ANC signed before a Notary.	ANC signed before a Notary.
   Debts & Liability	Joint Liability. Creditors can seize all assets for either spouse's debt.	Protected. Creditors generally cannot touch the other spouse's assets.	Protected. Total separation of assets and liabilities.
   Contractual Power	Joint consent required for most major transactions (buying property, etc.).	Full Independence. No consent needed for contracts or purchases.	Full Independence. Total financial autonomy.
   At Death or Divorce	Joint estate is split 50/50.	Sharing of Growth. The spouse with the smaller growth claims half the difference.	No Sharing. Each spouse keeps only what is in their own name.
   Key Advantages	Promotes total economic equality.	The Fair Choice. Shares wealth built together while protecting pre-marital assets.	Asset Safety. Ideal for protecting business interests or existing wealth.
   Major Risk	Insolvency Risk. One spouse's business failure ruins both parties.	Requires accurate record-keeping of "Commencement Values."	Can leave a non-earning spouse financially vulnerable.
   Best Suited For	Not Recommended in modern South African law due to high risk.	Younger Couples starting a life together or business owners.	Second Marriages, couples with children from previous unions, or high-net-worth individuals.

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