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A marriage contract is more than a formality, it's a legal agreement that defines how a couple's assets, debts, and financial responsibilities will be managed during and after their marriage and/or in the event of death of one of the spouses. In South Africa, the term is often used interchangeably with an antenuptial contract (ANC), but it can also refer more broadly to any formal arrangement governing the matrimonial property system between spouses.
When two people marry without signing an antenuptial contract, they are automatically married in community of property. This means that everything they own and owe, from assets and investments to loans and liabilities, becomes part of one joint estate. While this system can promote equality, it also carries financial risks. For example, if one spouse is declared insolvent, the other's assets can be attached to satisfy creditors.
To avoid this, couples may sign a marriage contract before the wedding, choosing instead to marry out of community of property, with or without the accrual system. This gives both partners greater control and independence over their finances, while still allowing for equitable sharing of growth if they choose the accrual option.
For the contract to be valid, it must be executed before a notary public and registered in the Deeds Office within three months of signing and prior to their marriage date.
Ultimately, a marriage contract allows couples to make informed choices about their financial future. It promotes transparency, reduces uncertainty, and ensures that both parties understand the legal consequences of their marriage, making it one of the most valuable investments a couple can make before tying the knot.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
