Registering Ante Nuptial Contract – Cape Town
The default marital regime in South Africa is that of the in community of property. Basically, when you get married, all your assets and liabilities join, and you only have a single estate. If the husband borrows money from his friend, both the wife and the husband would be liable to repay it from the joint estate. This would be the case even if they divorce later.
Therefore, if you get married without an Ante Nuptial Contract (ANC), you are automatically married in the community of property. But what exactly is the purpose of having an ANC?
An ANC is a written agreement between two parties before entering into marriage. The agreement stipulates how their assets will be dealt with in the event of divorce or death. Having an antenuptial contract benefits you in the following ways:
- Debt incurred by the other party will not affect you financially due to the ANC in place.
- The ANC can be drafted and tailored according to your circumstances, so you can get the most out of it.
- The ANC allows the parties to remain separate in estates.
- Parties will not need each other’s consent in financial dealings.
- Parties can maintain their own financial independence.
Types of Antenuptial Contracts
Basically, there are two types of antenuptial contracts, which are as follows:
- Antenuptial contract where you are married out of community of property with the accrual regime; and
- Antenuptial contract where you are married out of community of property without the accrual regime.
What is the Accrual regime?
The accrual regime only applies to marriages out of the community of property. In short, if the accrual regime applies to your marriage, at death or divorce, you and the other party would share in the growth of each other’s estates.
Antenuptial Contract with Accrual
Having the accrual system included in the marriage out of community of property means that you and your spouse will manage assets separately during the marriage. This means that estates will also function independently from each other. Any assets and liabilities acquired during the marriage will remain separate as well. However, at death or divorce, you would share in each other’s growth.
Ante Nuptial Contract without Accrual
Having the accrual system excluded from the ANC means that you and your spouse will manage assets separately. This means that estates will also function independently from each other. Any assets and liabilities acquired during the marriage will remain separate as well. This situation would remain even in divorce or death.
It is essential to have your ANC professionally and legally drafted by a legal expert who is well-experienced and knows what he/she is doing. Some couples take the easy way or the least costly route, which is later to their detriment after being married.
