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Prenup With Accrual

Prenup With Accrual Template for South Africa

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Key Requirements PROMPT example:

Prenup With Accrual

"I need a Prenup With Accrual agreement for my upcoming marriage in March 2025, which must account for my properties in both South Africa and the UK, with specific provisions for currency fluctuations and overseas asset valuation."

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Document background
The Prenup With Accrual agreement is a sophisticated matrimonial property arrangement available under South African law, designed for couples who wish to maintain separate estates while ensuring fair sharing of wealth accumulated during marriage. This document becomes necessary when prospective spouses want to marry out of community of property while still providing for shared growth in their respective estates. It must be executed before marriage and requires notarial execution and registration in the Deeds Office as per the Matrimonial Property Act 88 of 1984. The agreement includes detailed schedules of each party's assets and liabilities at commencement, specifies excluded assets, and establishes the mechanism for calculating the accrual claim. This type of agreement is particularly relevant for individuals bringing substantial assets into the marriage or expecting significant future growth in their estates.
Suggested Sections

1. Parties: Identification and details of both parties entering into the agreement

2. Background: Statement of intention to marry and choose the accrual system

3. Definitions: Key terms used in the agreement, including 'accrual', 'commencement value', 'final value', and other relevant terms

4. Marriage Out of Community: Declaration that the marriage will be out of community of property and profit and loss

5. Application of Accrual: Confirmation that the accrual system will apply to the marriage as per the Matrimonial Property Act

6. Commencement Values: Declaration of the initial net value of each party's estate

7. Excluded Assets: List of assets specifically excluded from the accrual calculation

8. Calculation of Accrual: Method and formula for calculating the accrual at dissolution

9. Financial Disclosure: Declarations regarding full disclosure of assets and liabilities

10. Death and Dissolution: Provisions for accrual claims in event of death or divorce

11. General Provisions: Standard contractual terms including amendments, governing law, and entire agreement clause

Optional Sections

1. Foreign Assets: Section dealing with assets held in foreign jurisdictions and currency calculations

2. Business Interests: Special provisions for handling business assets and valuations

3. Inheritance Provisions: Specific terms regarding treatment of inherited assets

4. Trust Interests: Provisions dealing with trust assets and benefits

5. Retirement Benefits: Special provisions for handling retirement funds and pension benefits

6. Life Insurance: Provisions regarding life insurance policies and beneficiary designations

7. Matrimonial Home: Special provisions regarding the primary residence

8. Alternative Dispute Resolution: Provisions for mediation or arbitration in case of disputes

Suggested Schedules

1. Schedule A - Initial Asset Declaration (First Party): Detailed list and values of first party's assets at commencement

2. Schedule B - Initial Asset Declaration (Second Party): Detailed list and values of second party's assets at commencement

3. Schedule C - Excluded Assets (First Party): Assets specifically excluded from accrual calculation for first party

4. Schedule D - Excluded Assets (Second Party): Assets specifically excluded from accrual calculation for second party

5. Schedule E - Liabilities Declaration: List of each party's liabilities at commencement

6. Appendix 1 - Asset Valuation Certificates: Independent valuations of significant assets

7. Appendix 2 - Supporting Documents: Copies of title deeds, share certificates, and other relevant documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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