Anc Contracts Marriage: Understanding the Legalities and Benefits
Ancient contracts (ANC) marriage is a type of marital regime that is recognized by South African law. It is an agreement that is signed between two partners before they get married, and it outlines how their assets and liabilities will be distributed in the event of a divorce or death.
The ANC marriage protects each partner’s financial interests and prevents the division of assets from being determined by South African marital law, which is based on the principle of community of property. Essentially, under this principle, everything owned by either party is considered joint property, and it is shared equally after a divorce or death.
However, with an ANC marriage, each partner can have separate estates, which means that each person’s property and liabilities remain their own. This can be beneficial in many ways, including protecting assets that were acquired before the marriage, shielding inherited property from being divided, and avoiding debt settlement disputes.
There are two types of ANC marriages:
1. ANC with Accrual
This type of ANC marriage is the most common in South Africa. It means that both partners maintain separate estates during the marriage, and in the event of a divorce or death, they are entitled to an equal division of the “accrual.” The accrual is defined as the increase in the value of each partner’s estate during the marriage, and it does not include pre-existing assets.
2. ANC without Accrual
This type of ANC marriage is less common, and it means that each partner maintains their separate estates during the marriage, and there is no sharing of assets or liabilities in the event of a divorce or death. This means that each partner is responsible for their own debts and assets.
The ANC marriage is a legal agreement that must be drawn up by a notary public or an attorney. It is then registered with the registrar of deeds in the area where the marriage takes place.
In summary, an ANC contract marriage is a viable option for couples who want to protect their financial interests and maintain separate estates during their marriage. It offers many benefits, including the ability to keep pre-existing assets, shield inherited property, and avoid debt disputes. It is essential to seek legal advice before entering into an ANC marriage agreement to ensure that it is tailored to your specific needs and circumstances.