An antenuptial contract, often referred to as a “prenup,” is a legally binding
agreement entered into by a couple before they get married. Its primary purpose is
to define how assets, liabilities, and financial matters will be managed during the
marriage and in the event of a divorce or death. Most notably, an antenuptial
contract can exclude the default marital regime of community of property, allowing
spouses to keep their estates separate.
Why is an Antenuptial Contract Important?
In South African law, couples who marry without an antenuptial contract are
automatically married in community of property, meaning all assets and debts
whether acquired before or during marriage are jointly owned and equally
shared. This can have significant financial implications, especially for individuals
entering marriage with considerable personal assets, business interests, or debts.
By signing an antenuptial contract, couples can tailor their financial arrangements
to suit their unique circumstances and protect individual assets. This contract can
specify whether spouses will marry out of community of property, with or without
accrual a system that allows for separate estates but shares the growth in estate
value during the marriage.
Key Features of an Antenuptial Contract
- Exclusion of Community of Property: The most common use of an
antenuptial contract is to exclude the default joint estate, keeping each
spouse’s assets and liabilities separate. - Regulation of Property and Financial Rights: The contract clearly
outlines how property will be divided in case of divorce, who is responsible
for debts, and how assets are managed during the marriage. - Accrual System Option: Couples can agree to marry “out of community of
property with accrual,” meaning each spouse retains their individual estate
but shares the growth in their estate value upon divorce. - Legal Formalities: To be valid, an antenuptial contract must be signed
before marriage and registered in the Deeds Office by a notary public. It
cannot be entered into after marriage.
Benefits of an Antenuptial Contract
- Protects individual assets and business interests
- Limits financial liability for one spouse’s debts
- Provides clarity and certainty regarding financial rights and responsibilities
- Helps avoid lengthy and costly disputes during divorce or death
Consulting with Legal Experts
Because antenuptial contracts have long-lasting legal and financial effects, it is
crucial to seek expert legal advice before drafting and signing such agreements. A
family law attorney can help tailor the contract to reflect your needs and ensure it
complies with all legal requirements.
How Pravda & Knowles attorneys Can Assist
At Pravda & Knowles attorneys our experienced attorneys guide clients through
the process of creating antenuptial contracts that safeguard their financial interests.
We provide personalized advice, draft clear agreements, and explain the
implications of various marital regimes so you can enter marriage with confidence
and peace of mind.
Contact us today to learn more about antenuptial contracts and how they can
protect your future.