Before you begin your wedding event planning in earnest, you need to decide what kind of contract your marriage will abide by in the event of death or legal separation. An ante-nuptial agreement has become a popular choice for asset holders.
There are essentially three kinds of contracts – an antenuptial agreement, marriage in community of property contract, and marriage out of community of property. Each of these agreements can be with or without accrual. The accrual system essentially defines how each partner’s growth after marriage may be shared in the event of legal separation or death. Without accrual means that wealth gained after marriage also remains the property of each partner separately.
You can discover more about the various agreements in the HAPPLy.co.za resources.
Also called a prenuptial agreement, the ante-nuptial document essentially allows each partner in the marriage to retain her or his property or assets. This includes assets accrued before marriage, and even afterward, depending on individual stipulations.
It is essential to know the basic benefits and pitfalls of the agreement in the event of death or divorce so that both partners may make an informed decision they both agree on. They include:
• Partners keep their property before marriage, and afterward if without accrual
• Some assets can be left out of the accrual system, for example, inheritance, winnings, or donations
• No partner is liable for another’s debt or insolvency
• No complicated joint administration
• Marriage partners can sign administrative documents and own assets separately
• If one partner works and the other does not, to be with the children, for instance, he or she will be dependent on the working spouse without protection from a joint system
• If with accrual, the financially stronger spouse is required to support the weaker in the event of divorce
• Depending on individual circumstances, some of these factors may vary.
An Antenuptial agreement is often signed when one or both partners enter marriage when they already have their own significant assets. These assets can include a business, property such as a house or office space, etc.
In the event of a divorce, asset holders are then protected from losing their property by the document.
Spouses to-be should sign an antenuptial agreement well before a marriage takes place. It can take time for these documents to be processed, so it is best to get the matter sorted out well in advance. Work on sorting this out four to six months before your wedding day.
Typically, the document is signed by both partners in the presence of two witnesses and a notary. The law firm you engage with must then lodge the agreement for you at the deeds office, i.e. with the registrar of deeds.
As you can see, you have some decisions to make concerning the formalities of getting married. It is essential to think these things through carefully before your big day arrives.
If you are unsure if getting an ante-nuptial agreement is the best option for you, consult with your lawyer for personalised advice.
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