23 Nov The Benefits of An Antenuptial Contract
An Antenuptial Contract defines and sets out the terms of your matrimonial regime. Even though it’s not something most newly-engaged coupled want to think about, the end of a marriage will occur as a result of death or divorce. The fairness and simplicity of that ending will be determined by the matrimonial regime you agree on prior to getting married.
Why An Antenuptial Contract Matters
Thinking of the end of a marriage isn’t necessarily top of the agenda for a newly-engaged couple planning a wedding. But the reality is that approximately one out of five marriages might end in divorce during the first ten years. If you are one of the couples to survive divorce, the death of a spouse is another reason that a marriage could come to an end.
Discussing and formalising the terms of your Antenuptial Contract doesn’t mean you don’t expect your marriage to last. In a similar way to preparing a last will and testament to protect your estate and heirs in the event of your death, the ANC is a crucial contract that helps you and your fiance or spouse prepare for your financial future as you enter your matrimonial regime.
What Is An Antenuptial Contract?
An Antenuptial Contract, sometimes referred to as a prenup, sets out the terms and conditions between two engaged parties before they get married.
“Deciding upon the terms of an ANC is the financially wise thing to do,” according to AWD Law’s Andre Germishuizen. “It’s not about love, it’s about making a financially-sound decision that may have a lasting impact on your marriage.”
What Does An Antenuptial Contract Contain?
Your Antenuptial Contract should contain the essence that governs your matrimonial regime, not only during the marriage but also upon dissolution of the marriage by either death or divorce.
Antenuptial contracts are simple, they do not need to contain a long list of assets.
An ANC for marriage out of community of property with accrual may include
- The parties will not have community of property
- The parties will not have community of profit or loss
- The accrual system, as governed by the Matrimonial Property Act, will apply to the marriage
- The parties’ estates’ net values at the time of the commencement of the marriage
- Any exclusions
- Determining the accrual
- Any other conditions that may impact the accrual are noted.
An ANC for marriage without accrual can be even simpler
- The parties will not have community of property
- The parties will not have community of profit or loss
- The accrual system, as governed by the Matrimonial Property Act, is excluded
- Both parties confirm their legal obligations concerning the marriage and property.
Only a notary may execute an Antenuptial Contract. For professional assistance with your ANC, please contact AWD Law and receive a free property consultation to advise and prepare you, which will help you make an informed decision before you enter the property market.
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