S2 Ep7: Money Bootcamp: Know your marriage contract
Marriage is often viewed through the lens of love, commitment, and partnership, but it is also a significant financial contract that can have profound implications on your financial future.
In this Insure your Future Money Bootcamp Maya Fisher-French and Mapalo Makhu interview attorney and mediator Lerato Seroke about the financial and legal implications of your marriage contract. This knowledge could save you from devastating financial consequences down the line.
Many people believe that living together for a long time constitutes a common law marriage, but as Lerato explains, this is a myth.
In South African law, common law marriage does not exist, and this misconception can expose couples to various financial risks. Without a legal marriage, partners may forfeit crucial benefits such as inheritance rights, spousal maintenance, and pension claims.
The episode explores the three valid forms of marriage in South Africa: civil marriage, civil union, and customary marriage. Each type has its own legal implications, particularly concerning financial responsibilities and rights. For instance, a civil marriage requires registration, while a customary marriage does not. This distinction can lead to complications, especially in cases of divorce or death.
Listeners will learn about the importance of keeping thorough records to validate a marriage, particularly in customary arrangements where formal documentation may be lacking. Lerato emphasises that individuals should document everything from lobola negotiations to communications with family members to protect their interests. The discussion also covers the different marriage regimes, including in community of property and out of community of property, with and without accrual.
These distinctions are crucial for understanding how assets and debts are managed within a marriage. For example, being married in community of property means that both partners share liabilities, which can lead to financial vulnerability. Mapalo shares her personal experience of choosing to marry out of community of property without accrual, emphasising the empowerment that comes from financial independence. This decision allows her to build her own assets while still collaborating with her partner on shared financial goals.
It's crucial to approach discussions about marriage contracts not as a sign of distrust but as a way to protect each other and build a solid financial future together. This episode is a must-listen for anyone considering marriage or currently in a long-term relationship. It provides valuable insights into how to safeguard your financial interests and ensure that both partners are protected. Tune in to gain a deeper understanding of marriage contracts and their implications for your financial health.
South Africa