Estate Planning: Critical Considerations for Couples in South Africa

South Africa Sees Decline in Marriages and Rise in Divorces: What You Need to Know

SOUTH Africa is experiencing a significant shift in relationship dynamics, with a decrease in civil marriages and an increase in divorces, according to Statistics South Africa’s 2022 report. The data shows a nearly 30% decrease in civil marriages between 2013 and 2022, while divorces have increased by almost 11% just between 2021 and 2022.

Estate planning and keeping your will updated are crucial aspects of every life stage, whether you are entering a new chapter together or ending a relationship. Understanding your rights and having honest conversations with your partner are key to navigating these changes effectively.

For couples choosing to commit without formal marriage, it is essential to have individual financial advisers, estate planners, and wills to ensure that each person’s wishes are respected. In the event of a divorce, having your own lawyer to advocate on your behalf becomes even more critical.

Here are some important considerations for estate planning at various life stages:

If you are getting married:
– Consider the default state of marriage in South Africa, which is a community of property where assets are split equally in the event of death or divorce.
– Explore the option of an ante-nuptial contract to be married out of community of property.
– Decide whether to include the accrual system in your marriage agreement, which determines how assets acquired during the marriage are shared.

If you are in a committed relationship but not married:
– Draft a domestic partnership agreement to protect your rights and assets.
– Ensure that you have an up-to-date will and consider having a professional executor to handle your estate.

In the event of a divorce:
– Update your will within three months of the divorce to ensure your ex-spouse is not considered your heir.
– Review and update the beneficiaries on your retirement funds and insurance policies.
– Build a team of legal and financial experts to support you during the divorce process.

It is important to engage with an estate planner regularly to ensure your plans are up to date and reflect your current circumstances. By making informed decisions and planning ahead, you can create a legacy that lasts beyond your lifetime.

With the right guidance and support, you can navigate the complexities of relationships, marriage, and divorce with confidence and clarity.

*David Thomson is a senior legal adviser at Sanlam Trust.