In South Africa, the art of love and law interweaves through the diverse matrimonial property regimes. Antenuptial contracts (ANCs) are pivotal for safeguarding a couple’s financial future, making them indispensable when planning to tie the knot.
South African law automatically places couples married without an ANC under the default matrimonial property regime: ‘in community of property’. This means you and your spouse are seen as ONE and you will be FULLY responsible for the liabilities and debts of your spouse, irrespective of when debt was incurred (before or after marriage) and on the flip side, you automatically become 50% owner of ALL your spouses assets, even if your spouse obtained same years before the marriage. It is therefore important for couples planning to tie the knot in community of property to carefully get to know their partners financial situation, as love really can be blind.
By signing an ANC, couples can opt for ‘out of community of property’, choosing either with or without the accrual system. The accrual system, introduced in 1984, allows spouses to retain their individual estates while sharing the growth in their assets during the marriage. This equitable approach ensures financial independence for each partner and offers a fair distribution in case of divorce or death. It is important to note that marriages entered into with the accrual system, neither spouse will be responsible for each other’s debt.
ANCs come in two primary types: with accrual and without accrual. Under an ANC without accrual, assets acquired before and during the marriage remain separate, and no sharing of growth occurs. This arrangement benefits couples with significant pre-existing assets or those who wish to avoid sharing future growth.
Couples can tailor their ANCs to their unique circumstances, specifying which assets are included or excluded from the accrual system. They may even establish special provisions, like addressing financial support or maintenance obligations. However, South African law prohibits provisions that are against public policy or limit either spouse’s rights to child custody or access.
Some interesting specifications that can be included in an ANC are:
In conclusion, ANCs are essential legal instruments that ensure a harmonious union by protecting both spouses’ financial interests. By including specific conditions and provisions, couples can create a tailored agreement that suits their individual needs and circumstances. Consult with us today to draft an ANC that reflects your unique preferences, and embrace the perfect marriage of love and law, South African style!