Millennials and Marriage: Accrual Rules for Pensions – Avoiding the 'Oops, My Retirement's in the Mixtape' Moment!
When it comes to marriage in South Africa, couples have the option to marry in or out of community of property, each choice carrying its own set of legal implications. One common question that arises when opting for an out-of-community marriage with accrual is whether one can exclude their pension fund or benefits from the accrual calculation. In this article, we will explore this question, shedding light on the legal framework surrounding pension funds and benefits in South African marriages.
Understanding Out-of-Community Marriages with Accrual:
Before delving into the exclusion of pension funds or benefits, it's essential to comprehend what an out-of-community marriage with accrual entails. In such a marriage, spouses maintain separate estates throughout the marriage, each owning their assets independently. However, the accrual system comes into play when the marriage ends, either through divorce or death. It aims to ensure a fair distribution of assets acquired during the marriage.
Pension Funds and Benefits in Accrual:
Pension funds and benefits are a significant part of an individual's financial security, making it crucial to address their treatment in an out-of-community marriage with accrual. Under South African law, pension funds and benefits earned during the marriage are generally considered assets for accrual purposes. This means that, unless specific measures are taken, they will be included in the calculation of accrual.
Excluding Pension Funds or Benefits:
To exclude your pension fund or benefits from the accrual calculation in an out-of-community marriage with accrual, it is necessary to draft a legally binding antenuptial contract (ANC). This contract should clearly stipulate the exclusion of pension funds or benefits from the accrual, among other assets. The ANC must be signed by both parties before a notary public and registered at the Deeds Office.
Seeking Legal Guidance:
Navigating the intricacies of South African matrimonial law, especially concerning financial matters like pension funds, can be complex. It's essential to consult with experienced legal professionals to ensure that your ANC effectively excludes your pension funds or benefits from accrual. At Mary Jane Mphahlele Attorneys INC, we specialize in family and matrimonial law. Our team of skilled attorneys can provide you with expert guidance on creating a legally sound antenuptial contract that meets your specific needs. We understand the importance of securing your financial future and are committed to helping you make informed decisions.
For personalized legal advice on excluding your pension funds or benefits from accrual in your out-of-community marriage, please don't hesitate to contact us at Mary Jane Mphahlele Attorneys INC. You can reach us at 015 023 0013 or 072 772 3401 or via email at info@mjmattorneys.co.za. In matters as important as your financial security, it's essential to have the right legal support. Contact us today to ensure your assets are protected according to your wishes.