Publications
Partners
Shutterstock [http://www.shutterstock.com]
Cape Town - It is important to plan carefully before you tie the knot and Sanlam Trust has the following advice:
Before the wedding:
Marriage system
The South African law allows for two marriage systems when you get married: In or out of community of property.
In the absence of an antenuptial contract the marriage will automatically be in community of property.
In community of property:
Advantages:
Both spouses enjoy an equal share of all assets, with the exception of certain inheritances expressly excluded from the spouses’ joint estate.
Another advantage is that one spouse may not enter into contracts or sign important documents alone.
Disadvantages:
Both partners share in any liabilities, which means they might lose all their assets, including those that don't form part of the joint estate, in case of attachment or insolvency.
Out of community of property:
An antenuptial contract executed by a notary (lawyer), at a total cost of about R1 600, must be signed prior to the marriage.
It is advisable to obtain sound advice on the issue of including or excluding the accrual system with the antenuptial contract.
Many couples married in community of property never thought of the possibility that one or both of them might start their own business one day, before they got married.
So neither spouse’s assets are protected against potential liabilities of the other spouse.
Advantages:
Each spouse’s assets are kept separate and each spouse is able to enter into contracts and sign documents without requiring the signature and consent of the other spouse.
Likewise, each partner is able to run their own business and in case of attachment and insolvency the other spouse’s assets are intact, unless he or she stood surety.
Disadvantages:
Marriage partners don’t share in each other’s assets, but legislation sufficiently covers the protection of the dependent spouse.
Will and beneficiaries on policies:
Getting married doesn’t mean that the nomination of heirs in existing wills and beneficiary nominations on policies are cancelled.
It is vital to draft a new will or revise an existing one, and to make possible amendments to or nominate beneficiaries on policies.
After the wedding:
Remember to make the necessary amendments to pension and medical funds.
Financial and estate planning:
If one or both spouses are insurable with a minimal or no loading, it is critical to take out the maximum affordable life and disability cover on one or both partners’ lives.
Banking:
Decide on separate and/or joint accounts, with or without proxies.
Acquiring assets and operating a business:
Obtain advice and then decide whether certain assets are to be acquired or operated in the name of a family trust or a close corporation respectively.
And if you are married out of community of property, decide whether it should be in one spouse’s name or both.
So apart from the wedding arrangements, there are a lot of things to consider. Set up a "to do" list and tick off the items as you complete them.
- Fin24
- Fin24
* Add your voice to our Women's Wealth Issue and help empower others this Women's Month.
Write a guest post
Share your coping tips
Ask the experts
Before the wedding:
Marriage system
The South African law allows for two marriage systems when you get married: In or out of community of property.
In the absence of an antenuptial contract the marriage will automatically be in community of property.
In community of property:
Advantages:
Both spouses enjoy an equal share of all assets, with the exception of certain inheritances expressly excluded from the spouses’ joint estate.
Another advantage is that one spouse may not enter into contracts or sign important documents alone.
Disadvantages:
Both partners share in any liabilities, which means they might lose all their assets, including those that don't form part of the joint estate, in case of attachment or insolvency.
Out of community of property:
An antenuptial contract executed by a notary (lawyer), at a total cost of about R1 600, must be signed prior to the marriage.
It is advisable to obtain sound advice on the issue of including or excluding the accrual system with the antenuptial contract.
Many couples married in community of property never thought of the possibility that one or both of them might start their own business one day, before they got married.
So neither spouse’s assets are protected against potential liabilities of the other spouse.
Advantages:
Each spouse’s assets are kept separate and each spouse is able to enter into contracts and sign documents without requiring the signature and consent of the other spouse.
Likewise, each partner is able to run their own business and in case of attachment and insolvency the other spouse’s assets are intact, unless he or she stood surety.
Disadvantages:
Marriage partners don’t share in each other’s assets, but legislation sufficiently covers the protection of the dependent spouse.
Will and beneficiaries on policies:
Getting married doesn’t mean that the nomination of heirs in existing wills and beneficiary nominations on policies are cancelled.
It is vital to draft a new will or revise an existing one, and to make possible amendments to or nominate beneficiaries on policies.
After the wedding:
Remember to make the necessary amendments to pension and medical funds.
Financial and estate planning:
If one or both spouses are insurable with a minimal or no loading, it is critical to take out the maximum affordable life and disability cover on one or both partners’ lives.
Banking:
Decide on separate and/or joint accounts, with or without proxies.
Acquiring assets and operating a business:
Obtain advice and then decide whether certain assets are to be acquired or operated in the name of a family trust or a close corporation respectively.
And if you are married out of community of property, decide whether it should be in one spouse’s name or both.
So apart from the wedding arrangements, there are a lot of things to consider. Set up a "to do" list and tick off the items as you complete them.
- Fin24
- Fin24
* Add your voice to our Women's Wealth Issue and help empower others this Women's Month.
Write a guest post
Share your coping tips
Ask the experts
