Moonlight and Roses, but What About Ante Nuptial Contracts?

So, you have been have been dating for a few years and are excited about getting married.  For most starry-eyed couples the 'pre-wed' phase can seem like it is all moonlight and roses, but have both parties discussed the need for an Ante Nuptial Contract ("ANC")? 

Happy couples embarking on a marriage may be reluctant to discuss a contract that deals with possible divorce, or eventual death.  However, your Ante Nuptial Contract is probably one of the most important documents you will sign in your lifetime. Many people do not understand the importance of an ANC.  Some expect it to be a standard pre-printed form which they pop in and sign just before they get married.  This can be an expensive misunderstanding.  Here are a few things to consider regarding Ante Nuptial Contracts and marital regimes:

If you do not sign an Ante Nuptial Contract, you will automatically be married in community of property.  This means both spouses will own all assets together but will also be liable for each other's debts. So if your spouse incurs debt and huge arrears (e.g. through a failed business venture, or a gambling problem or is reckless with his/her finances) both spouses will be equally responsible for paying back those debts. An ANC will protect both of you against that.

If you sign an ANC, you will be married out of community of property.  This means that each spouse holds his/her separate property and has complete freedom to do as they wish with his/her estate.  Having an ANC in place guarantees that you and your spouse are seen as separate legal units, which means you are sheltered from your spouse's creditors.

The accrual system will automatically be included in your ANC, unless both spouses decide to specifically exclude it from the marriage contract.  Accrual is a method devised to allow spouses to share in the growth of each other's estates. The accrual is only paid out when the marriage is liquefied – either by divorce or death. You cannot claim your share of the accrual while you are still married. 

The accrual system can also be excluded from your ANC but one must understand the implications of doing so.  It is important to obtain proper legal advice so you can choose a marital system that is best suits your needs.

Shalin Lilram Incorporated, based in South Africa, is a multi-service law firm that believes in making complex processes, simple. Shalin Lilram Incorporated is driven by innovation, not tradition.  They believe in delivering effective solutions to ensure your legal issues are resolved.

Source : articlesbase.com