Antenuptial Contracts in South Africa
Submitted by: SchoemanLaw Inc
Celesté Snyders | SchoemanLaw Inc
Category: Contract Law | Antenuptial Contracts | Family Law
Marriage is an exciting and life-changing event but has significant legal and financial implications. One of the most important legal documents couples should consider before getting married is an antenuptial contract.
An Antenuptial Contract (ANC) is also known as a Prenup, Prenuptial Contract, marriage contract, or prenuptial agreement. This is a contract between two people before their marriage or civil union. The purpose of the contract is to stipulate the terms and conditions for the exclusion of community of property between them. The ANC must be notarized by an attorney notary and registered with the Deeds Office; otherwise, failure to do so will result in a complex process to enact a postnuptial agreement.
The ANC outlines how the parties' assets will be divided in the event of a divorce or the death of one of the spouses. One of the primary benefits of an ANC is that it provides certainty and clarity for both parties. In addition, by agreeing on the terms of the contract before the marriage, couples can avoid potential disputes and misunderstandings that could arise in the event of a divorce or separation. This can help to reduce stress and conflict and make the divorce process smoother and less costly.
Antenuptial Contracts and Deceased Estates
In addition to protecting assets, ANCs can also provide for the financial needs of each spouse in the event of a divorce, death or separation. The contract outlines how much spousal support or maintenance will be paid and how long. This can help ensure that both spouses can maintain their standard of living after the divorce. ANC's is an essential document in South African law, and failure to sign an ANC will result in your marriage being in community of property.
Why should I consider registering an Antenuptial Contract?
The most common reason why you should prefer to enter into an ANC to be married out of community of property is:
You do not want to be held liable for any debts that your spouse may have incurred before and during the marriage; You want to protect assets such as a house from creditors, particulary if one of the spouses has a business of his or her own; Both spouses may have acquired assets before the marriage that they don’t want it to become part of the joint estate; It gives you financial independence to enter into financial transaction without the consent of your spouse; During the existence of the marriage, each spouse controls their own property, builds up their own assets and estate and each is responsible for their own debts.
The Benefits of an Antenuptial Contract
An ANC is signed by the couple prior to their marriage, in order to be excluded from being married in community of property.
An ANC offers a number of benefits, including:
It prevents the intended marriage from being in community of property; It prevents unnecessary disputes between the two parties when the marriage is terminated
The two options regarding an Antenuptial Contract
There are two accrual options when entering into an ANC before getting married. The two accrual options:
Marriage out of community of property with the accrual system and; Marriage out of community of property without accrual system.
When you sign the ANC prior to your marriage, the accrual system will apply under the Matrimonial Property Act 1984, unless it is expressly excluded in the contract.
The accrual system is a from of sharing of the assets that are built up during the marriage. Each party is entitled to take out asset value that he or she brought into the marriage, and they share what they have built up together.
Conclusion
An ANC is an important legal document that couples should consider before getting married. It can provide certainty and clarity, protect assets, provide for the financial needs of each spouse and protect the interests of any children from previous relationships. By working with an experienced attorney to draft an ANC, couples can ensure that their legal and financial affairs are in order before saying “I DO”. Make signing an ANC part of your marriage plan. Contact an Attorney by contacting SchoemanLaw Inc today!
Celesté Snyders | SchoemanLaw Inc
Attorney
https://schoemanlaw.co.za/our-services/contract-drafting/antenuptial-contracts/
SchoemanLaw Inc Attorneys, Conveyancers and Notaries Public is a boutique law firm offering its clients access to high quality online legal documents and agreements, together with a wide range of legal services. The firm has an innovative and entrepreneurial mindset that distinguishes it from other law firms. We apply our first-hand understanding of the challenges facing entrepreneurs (regardless of their business size) to develop proven, practical solutions incorporating legal compliance, risk aversion and business sense. We achieve this by offering clients tailored, yet holistic support comprising of legal gap analysis, the design of tailored legal solutions and the practical implementation thereof through training and automation. With your personal interests in mind, our ultimate aim is to implement measures that protect the results of your hard work as effectively as possible.
