Are you aware that the decisions you make today could impact the rest of your married life?
There are three main marital contracts that will influence your rights within marriage:
1. Marriage in Community of Property: This is the default marital contract. Assets are shared. Credit agreements require a spouse’s permission. Debt is shared. All assets are shared equally in the event of divorce. This means a lot of risk is involved, and very little individual protection is offered. Therefore, an antenuptial agreement is recommended.
2. Antenuptial Contract with Accrual: With the accrual system the property and wealth owned before and after the marriage remains separate. However, on the dissolution of the marriage, whether it is brought about by divorce or death, the spouse whose estate has accrued the least value will have a claim against the estate of the other spouse.
3. Antenuptial Contract without Accrual: Each spouse has a separate estate with no shared assets accrued during the marriage. No shared liability exists for each other’s debt. Assets remain separate in the event of divorce. Your antenuptial contract can be tailored to your wishes and outline how assets and liabilities are managed in marriage (as well as in the case of divorce). It offers protection in a way that marriage in community of property cannot.
Many married couples are also able to benefit from the protection of antenuptial contracts without ever going their separate ways.
Why not make the right decision today to protect yourself and your spouse within marriage? For more about this topic visit our website, www.vorsteyn.co.za, or reach out to us for a consultation at 028 313 0033/vorsteyn@hermanus.co.za
