Once you've said 'yes' to his or her proposal, you need to know how your marriage will work regarding your assets and transactions. So what does in Community of Property mean, exactly?
Let's explore it a bit for you.
If you get married without having an antenuptial or prenuptial agreement in place, you will automatically be married in Community of Property. This means you and your marriage partner will have a joint estate. You will share everything in terms of assets and wealth.
The joint estate scenario also means you share each other's debts and other liabilities. This includes liabilities accrued before as well as after getting married - so it's a big decision.
Each spouse will have equal control to make transactions, except for larger transactions where both spouses' agreement and signatures will be required.
You will be married out of Community of Property if you sign an antenuptial agreement before getting married. We explore this a bit more in a separate article.
1. This contract can benefit the financially weaker spouse.
2. No agreements, signings, and extra-legal fees are needed before marriage.
3. Fosters a sense of equality and open communication concerning financial concerns
1. The main disadvantage is that if one partner is less responsible with the shared assets, the other is accountable.
2. If one partner accrues a lot of wealth and the other does not, the less affluent partner will still have a half share in the estate. This can be particularly difficult in the event of divorce.
3. Administration of a joint estate can be quite convoluted.
4. Several kinds of transactions must be co-agreed or signed by both partners.
5. In the event on a disagreement between spouses regarding the estate, it can be not easy to settle.
Yes, if you find you would rather sign an antenuptial contract after you have already gotten married in Community of Property, it's still possible to adjust this. It is a bit more expensive and admin intensive, but it can be done.
You will need to make a High Court application to change your agreement, which is very expensive. You will also need to advertise your intentions, so any creditors have the opportunity to object to the matter. An attorney can help you to navigate this process if need be.
To save yourself some expense and time, it is best to do your homework and decide on a contract before getting married.
Essentially, it would help if you weighed up your financial situations individually and together. This will assist you in finding out if a marriage in Community of Property would be the best thing for as a couple, or not.
It is best to also consult with your legal advisor about what is best for you and your spouse to be. Talking with a legal professional can go a long way to helping you understand more thoroughly how things work and what the best option is.
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