{"id":696,"date":"2016-01-20T09:58:20","date_gmt":"2016-01-20T07:58:20","guid":{"rendered":"http:\/\/anthonywhatmore.co.za\/?p=696"},"modified":"2016-01-20T10:28:02","modified_gmt":"2016-01-20T08:28:02","slug":"before-you-tie-the-knot","status":"publish","type":"post","link":"https:\/\/anthonywhatmore.co.za\/index.php\/2016\/01\/20\/before-you-tie-the-knot\/","title":{"rendered":"BEFORE YOU TIE THE KNOT…."},"content":{"rendered":"

\"tietheknot\"<\/a><\/p>\n

\u201cKeep your eyes wide open before marriage, half shut afterwards\u201d (Benjamin Franklin)<\/em><\/strong> Whether or not you elect to follow the second part of Ben Franklin\u2019s advice, be sure to follow the first – keep your eyes wide open when choosing which \u201cmarital regime\u201d will apply to your marriage.<\/p>\n

To ANC or not to ANC? \u00a0That is the question<\/em><\/strong> Do you or don\u2019t you need an ANC (\u201cantenuptial contract\u201d)? \u00a0 Firstly, it\u2019s not<\/u> an admission that you may divorce, so don\u2019t fall into the trap of thinking \u201cwe don\u2019t want to even think about divorce so no ANC for us thanks\u201d. \u00a0Not only do our divorce statistics make that a very short-sighted approach, but your choice now also affects you both during your marriage and when one of you dies.\u00a0<\/strong> Secondly, familiarise yourself with the three options that our law allows. \u00a0The guidelines below are simplified and there are many factors to take into account – seek specific advice on the right option for your particular needs and circumstances. \u00a0And don\u2019t leave it to the last minute; you are going to be making important decisions here! \u00a0 Your choices<\/em><\/strong><\/p>\n

1.\u00a0\u00a0\u00a0\u00a0 Marriage in community of property <\/em><\/strong> Your assets and liabilities are merged into one \u201cjoint estate\u201d. \u00a0Everything (with only a few specific exceptions) that you bring into, or accrue during, the marriage falls into this joint estate. \u00a0You will need your spouse\u2019s written consent for some important transactions. \u00a0On divorce or death the joint estate is split equally between you, regardless of what each of you contributed to the marriage. \u00a0And if one of you runs up debts or gets into financial difficulties, it is the joint estate that must pay. \u00a0Your joint estate could even be sequestrated – you risk losing everything. \u00a0So this option is likely to be unsuitable for many couples – and beware it is the default regime i.e. you will automatically be married in community of property if you don\u2019t specify otherwise in an ANC executed before you marry.<\/strong><\/p>\n

2.\u00a0\u00a0\u00a0\u00a0 Marriage out of community of property without the accrual system <\/em><\/strong> Your own assets and liabilities, both what you bring in and what you accrue during the marriage, remain solely yours to do with as you wish. \u00a0You don\u2019t need your spouse\u2019s consent for any transactions relating to them. \u00a0You are not liable for your spouse\u2019s separate debts and if your spouse\u2019s estate is sequestrated you can claim your separate assets back (you will however need to prove that they are indeed yours). \u00a0Note that if you want to exclude the accrual system your antenuptial contract must specify accordingly.<\/strong> \u00a0Excluding accrual will be the right choice for some, but be aware that without accrual the poorer spouse (usually a spouse whose contribution to the marriage was more on the home-making side rather than financial) risks being left destitute after many years of marriage.<\/p>\n

3.\u00a0\u00a0\u00a0\u00a0 Marriage out of community of property with the accrual system <\/em><\/strong> Firstly, although this is generally regarded as the fairest and most popular option for modern marriages, it is not necessarily the best choice for everyone. \u00a0As with the previous option, your own assets and liabilities remain solely yours, you don\u2019t need your spouse\u2019s consent for any transactions relating to them, and you can protect your assets from your spouse\u2019s creditors. On divorce or death however, you share equally in the \u201caccrual\u201d (growth) of your assets (with a few exceptions) during the marriage, as the table below illustrates \u2013<\/p>\n

\"dotnewsanc\"<\/a><\/p>\n

Tailored ANCs, and a note for the long-married<\/em><\/strong><\/p>\n