Antenuptial contracts, commonly referred to as prenuptial agreements, are legal documents signed by two individuals before they get married. These contracts outline the division of assets and liabilities in the event of a divorce or the death of one spouse. Antenuptial contracts are becoming increasingly popular, as more people recognize the benefits of protecting their assets and ensuring financial security in the event of a marriage breakdown.
There are three different types of antenuptial contracts that couples can choose from. These include:
1. A marriage contract with accrual
A marriage contract with accrual is the most common type of antenuptial agreement in South Africa. This type of contract is designed to protect the assets that each spouse brings into the marriage. Any assets that are acquired during the marriage are divided equally between the spouses should the marriage end in divorce. However, in the event of the death of one spouse, the assets are divided according to their respective estates.
2. An out of community of property contract
An out of community of property contract is a more comprehensive antenuptial agreement. It involves the separation of finances between the two spouses. This separation includes assets, liabilities and debts that were acquired before and during the marriage. This type of contract is designed to protect each spouse`s assets, and each spouse is responsible for their own debts.
3. An in community of property contract
An in community of property contract is a less common type of antenuptial agreement. This contract involves the sharing of all assets and liabilities between the two spouses. In the event of a marriage dissolution, the assets are divided equally between the spouses. This type of contract is not widely used, as it is seen as potentially financially risky for both parties.
In summary, antenuptial contracts are an important legal document for couples to consider before getting married. These contracts protect both parties` financial interests in the event of a divorce or the death of one spouse. Couples have several options when it comes to choosing the type of antenuptial contract that best suits their needs. It is important to consult with a legal professional experienced in family law to ensure that the antenuptial contract is drafted and executed correctly.
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