WE ALL wish that our happy unity would last forever when we say “I do” but it doesn’t always happen.
Many marriages, especially for young couples, are short-term affairs which end in divorce and money issues.
Errol Meyer, head of advisory services at Standard Bank financial consulting, said: “You need to consider the possibility that your marriage may end in divorce. It may drain you emotionally but plan to stay intact financially.”
Collect information: If divorce will change your personal life, take stock. You need to understand your opportunities and make new lifestyle goals.
Also, make changes to your will as soon as possible after your marriage. In terms of the Wills Act there is an assumption that former spouses disinherit each other unless a contrary intention appears. They have a three-month period of grace to adjust their wills accordingly.
Stash some cash: One of the biggest challenges many people face during a divorce is cash flow. It’s important to find a way to build cash reserves and save by putting away small amounts every month. Cut down on your spending.
Get a job: At this stage, income is more important than job satisfaction or having a dream job. You need to build financial independence first.
Get a bank account in your own name: This helps you establish a credit record which you’ll need to build your financial strength. If you have relied on your spouse to manage all the financial affairs, you may not be financially strong enough on your own to get access to credit or a cheque account.
Know what you can claim: What you end up getting in the settlement depends a lot on the type of agreement you have.
If you have an ante-nuptial contract with accrual, it means that any financial objects you have accrued after your marriage date must be split 50-50. This means that the partner with the smaller estate can claim 50% of the difference from the spouse with the larger estate – including pension benefits.
If you are married in community of property, you will be entitled to half of the estate as part of your divorce.
