Antenuptial Contract with Accrual Explained

At Louwrens Koen Attorneys , we understand the importance of antenuptial contracts in South Africa. As experts in this field, we want to provide you with comprehensive information on this topic. 

In this article, we will explain what an antenuptial contract with accrual is, why it is important, and how to draft one.

What is an Antenuptial Contract with Accrual?

An antenuptial contract with accrual is a legal agreement between two individuals who are planning to get married. It outlines the division of assets and liabilities in the event of a divorce or death. 

The accrual system is a way of sharing the assets and liabilities accumulated during the marriage equally between the two parties. This means that both parties will benefit from the assets and liabilities acquired during the marriage, regardless of who earned them.

Why is it Important?

An antenuptial contract with accrual is important for many reasons. It provides legal protection for both parties and ensures that assets and liabilities are divided fairly in the event of a divorce or death. 

Without an antenuptial contract with accrual, the law in South Africa assumes that the couple is married in community of property. This means that all assets and liabilities acquired before and during the marriage are shared equally between the two parties. 

This can be problematic if one spouse has accumulated more debt or assets than the other.

How to Draft an Antenuptial Contract with Accrual: 

Drafting an antenuptial contract with accrual can be a complicated process. It is important to seek the guidance of a qualified attorney to ensure that the contract is legally binding and that all aspects of the agreement are properly addressed. Here are some steps to follow when drafting an antenuptial contract with accrual:

1. Hire a qualified attorney who specialises in antenuptial contracts.
2. Discuss your specific needs and goals with your attorney, including your current financial situation, future financial goals, and potential risks.
3. Your attorney will draft the contract and present it to both parties for review.
4. Once both parties are satisfied with the contract, it must be signed in the presence of a notary public.
5. The contract must be registered with the South African Deeds Office within three months of the date of the marriage.

Conclusion:

An antenuptial contract with accrual is an important legal agreement that can protect both parties in the event of a divorce or death. It is important to seek the guidance of a qualified attorney when drafting this contract to ensure that it is legally binding and that all aspects of the agreement are properly addressed. 

We hope that this article has provided you with a better understanding of antenuptial contracts with accrual in South Africa. If you have any questions or need assistance with drafting a contract, please do not hesitate to contact us.