Marriage Contract determines how your property will be divided in the cases of death or divorce. However, your last will and testament, which deals with the division of assets after death, may determine how your assets are divided if your marriage contract is not drawn up properly.
Understanding the different marriage contracts
There are 2 marriage contracts: community of property or an antenuptial agreement. If you choose to be married in community of property, your assets are shared equally. If you don't want your assets to be shared, you need to sign an antenuptial agreement before you get married. If you don't sign an antenuptial agreement, you’ll automatically be married in community of property.
Marriage in community of property
This agreement combines everything that you and your partner owned before and during your marriage. This excludes any items you’ve inherited.
While it creates a sense of partnership, it can become problematic because you'll to get written permission to buy or sell property including jewellery.
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Cons:
Marriage out of community of property (antenuptial)
This contract provides 2 options, marriage with or without the accrual system.
A marriage with the accrual system protects the partner who is financially vulnerable while the marriage without the accrual system allows each partner to freely manage their own assets.
1. Marriage out of community of property with accrual
If you choose to be a stay at home parent or offer up your studies, this system ensures that you’re covered.
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This contract separates your assets from your partner’s. In the case of divorce, it ensures that you retain the assets which you’ve gained before and during your marriage.
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