Trusts – if they are married to the demarcation system, each spouse is free to establish trusts, whether from among the living or willary, according to their needs and objectives. This means that one of the spouses is free to transfer the property he or she owns into a living trust without the permission or knowledge of the other spouse. Unfortunately, founders of inter vivos trusts often abuse to hide assets from the other spouse when they divorce. However, the legislation provides that a spouse may apply to the High Court for review of the assets of the trust in determining the disposition. A marriage contract is a legal document that is signed before the start of a marriage and governs the financial relationship between a couple. The matrimonial property regime in South Africa can be classified either as a community of property or outside the community of property. In the latter case, there is another subdivision, either with a provision or without a provision. But what does all this mean and which one is best for you? The provision comes into force when the marriage ends – due to divorce or death. You cannot claim the disposition while you are still married. But when the marriage ends, the partner with the smallest demarcation has a claim against the estate of the other. The claim relates to 50% of the difference between the increase in the value of the two estates or a percentage agreed to by the parties in their antenuptial agreement.
Well, no. Not really. Not if you don`t want to (or if you and your partner decide not to). But since an ANC determines whether a marriage is entered into inside or outside the community of ownership with or without the demarcation system, it becomes crucial for the financial consequences of your union to at least take this into account. The periodic table does not automatically apply to all marriages outside the community of property. For the periodic table to apply, the prenup must be created in a certain way. The periodic table incorporates a calculation that is applied when the marriage is ended by a divorce. The spouses divide the property during their marriage on the basis of a certain calculation when the marriage is divorced. Most couples tend to marry from the community of property with provision.
The accumulation system allows the parties to exclude all the property they had before the marriage if they wish. In addition, the law stipulates that certain property is automatically excluded from a marriage subject to arrears, such as . B inheritance or compensation for pain. Non-provisioning antenuptial contract – Property acquired before or during the marriage remains separated for the entire period of the marriage. Assets are not divided and each partner has a separate estate. Advantages of community of property marriage to the exclusion of demarcation The concept of delimitation is intended to balance the conditions of competition at the time of dissolution of the marriage in such a way that, if one of the parties was a housewife, she is entitled to the succession of the other parties without being liable for the debts of the other parties. Simply put, the party that acquired the most during the marriage must share some of the assets with the other party. Only assets acquired during the marriage will be part of accrual accounting. So none of the parties should leave the marriage with less than what they married with, and everything that was built during the marriage must be divided. For couples who opt for the demarcation system, it is “let`s share our assets, but not our debts”.
An antenuptial contract without provision is like getting married, but staying single when it comes to your finances. The succession of each partner remains exclusively with them before, during and after the marriage: although this type of contract is advantageous when both parties are financially stable, problems arise with a financially dependent spouse with little or no assets. Such a person can theoretically end up with little or nothing after divorce. As an example – you are married from the condominium community, but with provisions. And your spouse dies – it`s as simple as saying – “what belongs to me belongs to me, and what belongs to you is yours”. .