Getting Married?
Antenuptial Contracts are often a source of discomfort, with spouses feeling that contemplating the financial consequences of a divorce somehow shows a lack of faith in the longevity of the marriage. But is actually isn’t true and spouses should not feel uncomfortable at all about concluding an Antenuptial Contract. In this article we explore the merits of an Antenuptial Contract and the try and unpack the important elements thereof.
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To Accrue or not to Accrue
ANC with Accrual:
The accrual system allows parties to share in the growth in their estates during the marriage. So, each party lists the commencement value of their assets on the marriage date and at the end of the marriage, they share in the growth during the period of the marriage. The regime is flexible, allowing parties to also exclude assets from the calculation of the accrual.
ANC without accrual:
What is yours is yours and what is your spouses is his or hers. You have separate estates and don’t participate in any growth in the estate of your spouse. When the marriage ends, whether it is by divorce or death, each of the parties retains her assets.
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Why you cannot afford to get married without an ANC
But we are really 100% committed to each other:
Yes, we hear you. If you are all in you still want to keep your estates separate. You can still share your estates by having the same starting point. In other words, if your commencement values are the same, then any increase in value benefits both parties equally.
It is not just about Assets, its also about DEBT:
People often see an ANC as an opportunity by one spouse to exclude the other from any financial benefit. But this is only half of the story. The real problem is that without an ANC the parties are automatically married in community of property. In simple terms, the law sees the parties as being a single economic entity. So, if you or your spouse go into business, sign surety, or get into financial trouble, it impacts on both parties.
What about practicalities:
If you are married in community of property, expect to be inconvenienced whenever you open an account, whether it is a bank account, a retail account,
a mortgage bond or even a signing up for a credit card. Because the law sees a single estate, both parties typically need to sign all legal contracts. It is a nuisance.
But can you just change it later:
Not so easy. Once you are married in community of property, it will take a significant legal process to unscramble those eggs, including notice to all creditors. It is a seriously tedious and expensive process.
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4,000
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ANC with Accrual
- This is a straightforward process,
login, complete the information and then make contact with our approved Notary to conclude the process and register your ANC. Please note that all services other than the document generation are provided by a third party registered Notary.
I do
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4,000
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ANC without Accrual
- This is a straightforward process,
login, complete the information and then make contact with our approved Notary to conclude the process and register your ANC. Please note that all services other than the document generation are provided by a third party registered Notary.
I do
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Call our ContractZone approved Notary for further advice
Benita Billings
Harris Billings Attorneys
011 784 1910
bbillings@hbattorneys.co.za
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