Advocate Muhammad Abduroaf – Trust Account Lawyer- Best Top Legal Law Practitioners (Advocate Attorney) Child Custody Maintenance Contact Divorce Relocation Passport Consent High Court Cape Town
Legal Advice and Services Throughout South Africa
Advocate Muhammad Abduroaf – Trust Account Lawyer- Best Top Legal Law Practitioners (Advocate Attorney) Child Custody Maintenance Contact Divorce Relocation Passport Consent High Court Cape Town
In Community of Property (Default system) A marriage in community of property is the default matrimonial property regime. You do not need to enter into an antenuptial contract in order to be married like this. Basically, when getting married, both spouses’ assets, money, liabilities and so on becomes one single joint estate. You can compare it to placing it all in one pot. And from that pot would the spouse’s finances be dealt with. If either spouse gets themselves into financial trouble, it is the joint estate, or the pot that would have to be looked at in order to sort it out. This would apply to financial trouble which arose even before the marriage. Lastly, at death or divorce, the joint estate, or the pot would be divided and each party’s estate would leave with half. If you are worried about the financial implications of your marriage, you need to read further. Out of Community of Property and Profit or Loss (Without Accrual) Being married out of community of property and profit or loss is basically the exact opposite of being married in community of property. Here we are dealing with out of community of property with the exclusion of the accrual regime. Under this matrimonial property regime, there remain two separate estates just as there was before the spouses got married. Each spouse is responsible for their own wealth and debt. Creditors can therefore only claim from the estate of the relevant spouse. Not the other. At death or divorce, the situation remains exactly the same. Each estate leaves with whatever it has, being it money, assets or debt. In order for a couple to be married out of community of property and profit or loss, they need to stipulate it in an antenuptial contract and have it registered. The antenuptial contract would be executed before a Notary Public and registered at the Deeds Office. If this is not done, then the marriage would be In Community of Property as above. Next, we deal with a hybrid regime. You may find it more beneficial to you. Read more on antenuptial contracts by clicking here. Out of Community of Property and Profit or Loss (With Accrual) The third option a couple has is to get married out of community of property and profit or loss with the inclusion of the accrual regime. The accrual regime or system is outlined in the Matrimonial Property Act 88 of 1984. Basically, what it entails is that during the marriage you are married out of community of property and profit or loss as in the latter section, but at divorce or death, you share in the accrual or profits of the marriage. Each spouse still retains full control over their assets and estate during the marriage. Just as out of community of property and profit or loss without the accrual. If, however, the parties divorce or one dies, they will share in the accrual or profits. If you want the accrual regime to apply to your marriage, that would be stated in your antenuptial contract. It would then also be registered at the Deeds Office. In order to work out the accrual, one needs to know the net commencement value of each party’s estate. That would be stipulated in the antenuptial contract. The Accrual system is regulated in Chapter 1 of the Matrimonial Property Act 88 of 1984. In terms of the Act, certain items are excluded when calculating the accrual unless otherwise agreed upon. This is dealt with next.