Post-nuptial contracts and finances.

by Law Blog MPA | Oct 23, 2023 | Estate planning, Family Law | 0 comments

What is it, and how does it work?

Marriage is a beautiful union that signifies love, trust, and commitment. However, it’s also a partnership that involves sharing your life and financial resources. While ante-nuptial contracts are well-known for defining the financial terms of a marriage before it begins, post-nuptial contracts are lesser-known but equally important legal documents that can help couples navigate their financial journey during their marriage. In this article, we will explore what post-nuptial contracts are, why they are becoming increasingly popular, and how they can benefit married couples.

Why is it called a post-nuptial contract?

A post-nuptial contract, often called a post-nuptial agreement or post-marital agreement, is a legal document a married couple creates after they have already tied the knot. Just like ante-nuptial agreements, post-nuptial contracts outline each spouse’s financial rights and responsibilities in the event of a divorce or other financial changes in the marriage, such as business acquisitions, inheritances, or changes in income.

Post-nuptial contracts are governed by Section 21 of the Matrimonial Property Act No 88 of 1984. Unlike ante-nuptial contracts, they require the parties to approach the court for leave to change the matrimonial regime between them.

Why do people enter into post-nuptial contracts?

Financial Clarity and Communication: One primary reason for the increasing popularity of post-nuptial contracts is the improved financial clarity and communication they provide within a marriage. Discussing and drafting such an agreement can open up lines of communication about financial matters, reducing misunderstandings and conflicts down the road.
Protecting Assets: Post-nuptial contracts allow spouses to protect their pre-marital assets, such as inherited properties, businesses, or investments. This can be particularly important if one spouse brings significantly more wealth or assets into the marriage.
Adapting to Changing Circumstances: Financial situations can change as life goes on. This includes business ventures, inheritances, or substantial salary changes. Post-nuptial contracts can be amended to adapt to these changing circumstances, providing security and flexibility.
Safeguarding Children’s Interests: For couples with children from previous marriages, post-nuptial contracts can help ensure that certain assets or financial arrangements are earmarked for the benefit of these children. This safeguards their interests and provides peace of mind to both spouses.
Estate Planning: Post-nuptial contracts can be valuable to estate planning, especially for older couples with complex financial situations and blended families. These agreements can define how assets are distributed upon a spouse’s death.

How do I enter into a post-nuptial contract?

Open Communication: Start by having open and honest conversations with your spouse about your financial goals and concerns. It’s crucial to be on the same page.
Consult Legal Professionals: Seek the guidance of attorneys specialising in family or contract law.
Full Disclosure: Both parties must provide full financial disclosure. Hiding assets or financial information can render the contract invalid.
Define Terms: Clearly define the terms of the agreement, including the division of property, spousal support, and any other financial arrangements you wish to address.
Legal Review and Application: Once the parties are clear in their intentions, an application must be filed with the courts.

What does the Application deal with?

The application will need to show the following:

There are sound reasons for the proposed change;
Sufficient notice of the proposed change has been given to all the creditors of the spouses and
The proposed change will prejudice no other person.
To the extent that the court is satisfied they are empowered to order that the parties’ prior matrimonial property system shall no longer apply to their marriage and authorize them to enter into a notarial contract by which their future matrimonial property system is regulated on such conditions as the court may think fit.

In conclusion.

Post-nuptial contracts are valuable for married couples seeking to safeguard their financial interests and maintain open communication about money matters. While it may seem unromantic to discuss such topics within the context of marriage, these agreements can provide both spouses a sense of security and clarity. It’s important to remember that these contracts protect assets and nurture a healthy financial relationship within the marriage.

If you are not yet married but would like to protect your financial future when you do get married, please click here to learn more.

If you would like further insight in to Post-nuptial contracts click here.

if you would like to know more about estate planning click here.

If you would like to know more about postnuptial execution of Antenuptial contracts, click here.

If you would like to know more about the legal implications of divorce click here.

If you would like to know more about divorce proceedings in general click here.

If you would like to know how to change your name after getting married click here.

If you would like to know more about spousal maintenance click here.

If you would like to know more about shares in companies and divorce proceedings click here.

If you would like to know more about custody battles in SA click here.

If you would like a general overview on how divorce works in SA click here.

If you would like to know more about meditation in divorce matters click here.

If you would like to know more about divorce and financial planning click here.

If you would like to know more about updating divorce orders click here.

If you would like to know more about power of attorneys click here.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for errors, omissions, loss, or damage arising from reliance upon any information herein. Don’t hesitate to contact Meyer and Partners Attorneys Incorporated if you require further information or specific and detailed advice. Errors and omissions excepted (E&OE)