When the big I-DO day nears, couples need to decide whether they are going to draft an ante nuptial contract (ANC), which will mean that you are married out of community of property or get married IN community of property. 

The reason for drafting such an agreement is usually to protect assets and financial position prior to and during the marriage.

In a recent court case the court however made an interesting ruling, regarding the businesses of couples and the ANC as we know it.

In this case the couple got married in 2009, out of community of property without the application of accrual and with the exclusion of profit and loss.  After the marriage they started a lucrative farming business together.  During the divorce proceedings, the one spouse brought an exception application before the Court requesting clarity on whether the business venture entered into constituted that of a universal relationship or was just to be deemed as part of the marriage.

The Court had to decide whether the business between the parties wherein Profit were shared, was in conflict with the exclusion of accrual in terms of the ANC.

The court ruled that the spouses be treated as business partners and that the profit would accrue to their separate estates, just like any other two individual partners.

It is important that the difficult conversations between spouse be had before the marriage and that the “What if’s?” be sorted out before you say I-Do!