When planning your marriage, it is all about the one day, where should we have the ceremony, how many guests, the financial impact and of course the dress. More time is spent on planning the dress and the reception than anything else. If more than 5 minutes are spent on the right marriage regime for their individual circumstances, it is the exception.
Entering into a marriage can be one of the most exciting journeys in one’s life. In the run-up to the wedding, couples often neglect the importance of discussing the type of marriage regime they should be entering into, depending on their assets.
Harry Joffe, head of legal services at Discovery Life, describes the three types of marriage regimes:
• In community of property. This is when everything is shared equally between the couple. They share what they bring into the marriage, what they earn during the marriage, as well as debts and liabilities. On death, the remaining partner pays duty on half that joint estate.
• Out of community of property. The couple excludes any assets that they do not want forming part of the joint estate.
• Out of community of property with accrual. This is when the couple shares only the growth in the estate during the marriage.
Legal marketing specialist at Liberty, Geraldine MacPherson said that often one party plans the estate, and that there are not enough couples planning their estates together.
“I do think there is still a great deal of inequality within the marriage relationship. We still tend to find that one spouse is stronger from a financial perspective and holds all the money. And estate planning tends to be focused on that individual as opposed to the less well-off spouse.”
She emphasised the importance of understanding a marriage contract and drawing up a will.
Well, these comments from Legal specialists are suppose to make you think of what to do when you plan to get married.
Did you think about the different types of Marriage regimes and what impact it will have on your business, your farm, or your finances in general:
- how does it impact on our current situation
- what will the impact be in future when we buy a house. or one of us start a business
- what happens when one of us die
- how does it impact on my will
- will assets accumulated prior to the marriage be excluded or protected in case of a divorce
We can go on and on with all the unanswered questions.
Bottom line is, much more thought should go into the right marriage regime for your personal situation and should be done together with the assistance of professional help, as this relationship might last for 50 years or end shortly in an ugly divorce. No one knows, so good planning may help to take the sting out of it, if it goes wrong.
Source : BDLive