Before you say ‘I do’
JOBURG – The wedding season is here and couples need to learn how to be financially savvy.
The wedding season is here and more and more couples are getting married.
John Manyike, head of Financial Education at Old Mutual, offered advice on how to stay within budget and still have that dream wedding.
He stated, “[When planning a wedding] it’s important not to get so carried away that you end up forgetting to stay within your financial means and forgetting to make responsible preparations for your financial future together. Before taking this big step, every couple needs to ensure that they tick, not only all the boxes on their wedding plan, but also all the boxes on a financial plan.”
In terms of the types of marriages and their financial implications, he offered advice for couples who are drafting a prenuptial agreement. “Marriage in community of property (Cop)… means all the assets and liabilities that you each had before the marriage become jointly owned when you get married. Marriage under customary law is regarded as being in community of property.”
He supplied details on getting married out of community of property which can be slightly more complex. A couple can get married in community of property with or without an accrual.
“An antenuptial contract (ANC) without accrual… must be drawn up by a lawyer and there are costs involved. The contract states that your assets and liabilities are kept separate. In the event of a divorce or death, each party leaves with whatever they brought into the marriage plus what they accumulated in their personal capacity during the marriage.
“This contract is appropriate for couples who have been married before and who may have children from previous relationships or where one of the parties is in business or acquired excessive debts prior to the marriage. It is also used to protect assets where one or both of you may become personally liable for the debts of a business venture.”
Antenuptial with the accrual system work differently. With this option, assets and liabilities are also kept separate, however, if a party to the marriage acquired less growth in his or her estate than his or her spouse during the marriage, he or she will be entitled to receive half of the difference in growth of your two estates.
“The type of marriage system you choose determines how credit providers will assess your future credit applications such as buying a house, a car or your access to credit in general.”
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