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Advantages and Disadvantages of a Marriage Out of Community of Property with Inclusion of the Accrual System (With Accrual)

Advantages and Disadvantages of a Marriage Out of Community of Property with Inclusion of the Accrual System (With Accrual)

The parties enter into an Antenuptial Agreement before getting married which matrimonial property regime excludes community of property and community of profit and loss. The accrual system as contemplated in the Matrimonial Property Act is specifically included.

Advantages of a Marriage Out of Community of Property with Inclusion of the Accrual System (With Accrual)

This system is undoubtedly a the most fair marital property regime as each spouse effectively shares in the increase in the assets accumulated during the subsistence of the marriage. A Spouse that stays at home to raise children or who has less earning capacity than the other spouse is not unfairly disadvantaged as is the case in a marriage out of community of property with exclusion of the accrual system.

The parties have separate estates and have full commercial freedom to trade and contract and no consent is necesaary from the other spouse to contract. The spouses are not exposed to the creditors or business risk or insolvency of the other spouse. The parties do not share their spouses credit record.

The contract is can be customised according to their individual needs. During the subsistence of the marriage, the position is the same as if married out of community of property, but when the marriage dissolves as a result of divorce or death, each spouse shares equally in the profit and losses made during the marriage.

Disadvantages of a Marriage Out of Community of Property with Inclusion of the Accrual System (With Accrual)

The parties must keep careful record of transactions to be able to correctly calculate accrual at the dissolution of the marriage. In the event of death, the surviving spouse has a claim against the first-dying spouse’s estate for their share of the accrual. Additionally to the antenuptial contract the parties must do careful estate planning,

Marriage Out of Community of Property with Inclusion of the Accrual System (With Accrual) is Best Suited

Younger couples. Especially where one of the spouses has his/her own business or where one of the spouses stays at home as a home giver or to raise kids. Most far the popular choice among especially younger couples.