The Accrual System Explained: With or Without Accrual

What accrual means

Accrual is the growth in each spouse's estate during the marriage. The accrual system lets spouses keep their estates separate while still sharing the growth they build up while married.

When the marriage ends, the spouse whose estate grew by less can claim half of the difference between the two growths. This recognises the contribution both partners make, including non-financial contributions.

How accrual is calculated

Each spouse records a commencement value: the net value of their estate at the start of the marriage. This is usually set out in the antenuptial contract.

When the marriage ends, you compare each estate's value then against its commencement value, adjusted for changes in the value of money over time. The smaller-growth estate has a claim for half of the difference.

What can be excluded from accrual

• Assets specifically listed and excluded in the antenuptial contract.
• Inheritances, legacies and donations received during the marriage (and what is acquired with them), unless the spouses agree otherwise.
• Donations between the spouses themselves.
• Certain compensation, such as for non-patrimonial damages.

With accrual vs without accrual

With accrual, you protect what you owned before the marriage but share the growth created during it. This is often seen as a fair middle ground and is the default if accrual is not excluded.

Without accrual, there is complete separation. Nothing is shared, during or after the marriage. This can suit spouses who are both financially independent or who want to ring-fence a business entirely.