Financial Planning for Marriage: ANC vs. Community of Property

There is a saying I tell all my clients: “A wedding is a day; a marriage is a lifetime; but a marriage contract is a business deal.”

I know, I know. It sounds unromantic. You are planning the venue, tasting the cake, and choosing the playlist. The last thing you want to talk about is divorce, debt, or death. But here is the hard truth: In South Africa, the moment you say “I do,” you are entering into the biggest financial contract of your life.

If you don’t choose your contract, the state chooses one for you. And the default option might be the most dangerous thing for your financial future.

I’m Nolan, and I’m here to guide you through the awkward but necessary conversation of financial planning for marriage. Whether you choose “Community of Property” or an “Antenuptial Contract” (ANC), you need to understand exactly what you are signing up for before you cut that cake.

The Default: Marriage in Community of Property (COP)

If you get married in South Africa and you do not sign an Antenuptial Contract before the wedding, you are automatically married In Community of Property.

How It Works

• “What’s mine is yours.” Everything you owned before the marriage and everything you earn during the marriage gets dumped into one pot (a Joint Estate).
• You are 50% owner. You own half of your spouse’s assets, but you also own half of their debt.

The Risks

This is the part that scares me. In a COP marriage, you are financially tied at the hip.

• Creditor Risk: If your spouse runs up a massive gambling debt or their business goes insolvent, creditors can come after the joint estate. They can sell your car to pay his debt.
• The Permission Headache: You lose your financial independence. You cannot sell a house, sign a credit agreement, or even bind yourself as surety without your spouse’s written consent.

Verdict: It is free to set up (no lawyer needed), but it carries the highest risk.

The Alternative: The Antenuptial Contract (ANC)

To avoid the COP trap, you must hire a lawyer (a Notary Public) to draw up an Antenuptial Contract before your wedding day. This regime is often called “Marriage Out of Community of Property.”

There are two types of ANC, and choosing the right one is the cornerstone of financial planning for marriage.

1. ANC Without Accrual (The Cold Separation)

This is the “what is mine is mine, and what is yours is yours” approach.

• How It Works: You keep your assets separate. You keep your debts separate. If you divorce, you walk away with exactly what is in your name.
• The Pros: Total protection. If your spouse goes bankrupt, your assets are safe.
• The Cons: It can be very unfair. If one spouse stays home to raise kids and sacrifices their career, they could be left with nothing after 20 years while the breadwinner walks away with millions.

2. ANC With Accrual (The Fair Middle Ground)

This is widely considered the best system for most modern couples.

• How It Works:
  1. Start: You declare what you have before the marriage (your “Starting Value”). That remains yours.
  2. During: Everything you build together during the marriage is the “Accrual.”
  3. End: If you divorce or die, you calculate who’s estate grew more. The person with the bigger growth shares the difference with the other so that both leave with an equal share of what was built during the marriage.
• The Pros: It protects what you had before, but acknowledges that marriage is a partnership. Your assets are still protected from your spouse’s creditors during the marriage.

Comparison Table: The 3 Regimes

The “Business Owner” Clause

If you are an entrepreneur, financial planning for marriage is even more critical.

If you marry in COP, your business effectively belongs to the joint estate. If the business fails, your family home is at risk. If you divorce, your spouse is entitled to 50% of your company, which could force you to sell it.

For business owners, an ANC (usually with Accrual) is almost non-negotiable to protect the family home from business creditors.

The Cost of “I Do”

• COP: Free (legally speaking).
• ANC: You need to pay a Notary Public. Prices generally range from R1,500 to R4,000 depending on the complexity.

Think of this fee as insurance. R3,000 is a small price to pay to protect your pension and your credit record for the rest of your life.

Changing Your Mind Later (Postnuptial)

“Nolan, we already got married in COP. Can we change it?”

Technically, yes. But it is a nightmare.

You have to apply to the High Court to change your matrimonial property regime. You have to prove to the court (and your creditors) that you aren’t doing it to hide assets. This process can cost between R15,000 and R30,000.

It is much, much cheaper to do it right the first time.

Nolan’s Practical Advice

1. The ” awkward” conversation: Open a bottle of wine. Sit down. Say, “I love you, and I want to build a future with you. Part of that is making sure we are both protected.”
2. Declare your assets: If you choose Accrual, be honest about your starting value. List your car, your savings, and your student debt.
3. See a lawyer together: Don’t let one partner dictate the terms. Go to a neutral Notary Public who can explain the implications to both of you.

Romance Meets Reality

Marriage is beautiful. It is a partnership of hearts. But it is also a partnership of wallets. Mastering personal finance in SA isn’t just about budgeting; it’s about legal structures.

Don’t let the fear of ruining the “romantic vibe” stop you from signing an ANC. True love is caring enough to ensure that if the worst happens—death, debt, or divorce—your partner is treated fairly and safe from creditors.

FAQ: Marriage Contracts

What happens if we don’t sign anything?

You are married In Community of Property by default. There is no middle ground.

Does an ANC cover death?

The matrimonial regime determines what you own when you die. If you are COP, your estate is frozen until the joint estate is wound up (which can leave the surviving spouse with no access to cash). An ANC keeps estates separate, making the administration of a deceased estate much simpler.

Where can I find a Notary Public?

Most attorney firms have a Notary Public on staff. You can search for registered practitioners via the Law Society of South Africa.