Antenuptial contracts are also referred to as prenuptial agreements. The main purpose of the antenuptial contract is to protect both parties’ interests should the marriage come to an end.
In the antenuptial contract, there may be terms and conditions that both parties have to agree to abide by during the marriage, in the event of a future divorce, or in the event of one party’s death.
What Is An Antenuptial Contract?
An antenuptial contract is a contract entered into by a couple intending to get married. They can be used to protect assets and property, or to outline responsibilities or expectations of each partner. Couples married under this contract are referred to as married out of community of property.
This type of marriage contract allows for exclusion of property between partners. While antenuptial contracts are not necessarily required for a marriage to be valid, they do serve as a helpful way of outlining expectations in a marriage and detailing how a couple’s assets will be managed within the marriage or distributed in the event of death or divorce. It is often recommended that couples seeking to get married enter into an antenuptial contract to protect themselves and their future wealth.
Out Of Community Of Property With Accrual
Couples preparing to marry often favour a marriage in which each spouse retains ownership of their separate property but shares the wealth they build together.
Prior to the marriage, each spouse retains ownership of their property, but the accumulated wealth gained during the marriage is shared. This is called “equitable distribution” and is determined by the court, taking into consideration each spouse’s earnings, assets, and effort put into the marriage. It is important to note that in the case of a divorce, you give up the rights to your spouse’s assets. Equitable distribution does not necessarily mean an equal split of assets.
Out Of Community Of Property Excluding Accrual
An ANC is signed when you get married out of community of proeprty. In the absence of an antenuptial agreement, the financial rules of marriage can be quite rigid and unresponsive to changed circumstances.
For example, if one spouse earns significantly more money than the other spouse and they are getting married, the spouse with lower earnings may not be able to collect spousal support during the marriage, even if they end up in a situation where they need it. Similarly, if one spouse has a significant amount of debt, that debt will likely become the responsibility of the other spouse during the marriage.
Married In Community Of Property
When you marry without an antenuptial contract, you are married in community of property which means everything you own on your wedding day is now shared between you and your spouse.
On top of all this, you are now responsible for each other’s debts as well. If one of you has a credit card with a balance on it, that debt is now shared. You now have joint responsibility for paying off that debt. If you are getting married without any type of contract, you are taking on significant responsibility that lasts for the rest of your life.
