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Marriage Out of Community of Property Print E-mail

Marriage Out of Community of Property

Before signing an ‘out of community of property’ contract, a couple must exclude any assets that they don’t want forming part of the joint estate. A couple can be married ‘out of community of property’ with accrual system, or without accrual.

Marriage Out of Community of Property (with accrual)

Marriage Out of Community of Property (with accrual) means that during the marriage, each spouse controls their own assets, and is responsible for their own debts.

On the dissolution of the estate, by death or divorce, the value of each spouse’s assets obtained during the marriage is calculated, and the spouse whose estate has grown less than the other’s estate during marriage will get half the difference between the growths in their respective estates.

There are advantages and disadvantages of marriage ‘out of community of property with accrual.’

Advantages of marriage with accrual:

  • Creditors of one spouse cannot attach the other spouse’s separate estate.
  • Spouses are liable for their own debts.
  • Each spouse is free to do as they want with their assets and they do not have to account to the other spouse before entering into transactions.

Disadvantages of marriage with accrual:

  • There is equal sharing of the growth of the spouses’ estates during the marriage, but no sharing what the other spouse brought into the marriage; that is what he or she owned at the time of the marriage.
  • One spouse can leave the marriage with a large amount of money and a large estate while the other leaves with a smaller amount and smaller estate.

Marriage Out of Community of Property (without accrual)

Advantages:

  • Spouses do not share their assets and on the dissolution of the estate, they get the whole estate.
  • They are each responsible for their own debts and each partner’s creditors cannot attach the other spouse’s estate.

Disadvantages:

  • If one spouse is unemployed and is financially dependent on their spouse, upon dissolution of the marriage, they will not be entitled to any property from his or her share, and may get only spousal maintenance.

 

 

 

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