When romance is in the air – finances need to be on solid ground!

It’s that time of year again when Valentine’s Day is celebrated by many and woe betide husbands who don’t celebrate it if their wives do! Seriously though, often in the month of romance, the big question is popped and many couples set out to build a life together.

Many arrangements are made to stage the perfect wedding and honeymoon travels are anticipated and agreed on, but sadly many couples, so caught up in the idea of matrimonial bliss, fail to attend to some very important matters before they say their ‘’I do’s’’.

When finding love turns to sharing a life, just as important as choosing a ring is to choose an appropriate marriage contract and seek sound financial advice to examine common financial goals and structure mutually beneficial finances.

Certainly, it is not for us to tell anyone how to structure their marriage, but from experience, we have found that when romance is in the air – finances need to be on solid ground. So, a little advice may be useful…

The marriage contract

The best advice here is to seek the assistance of a good attorney who can advise on and draw up a marriage contract that is mutually beneficial to both parties. From a financial and investment point of view, which is our area of expertise, we strongly advise this, as if a marriage contract is not drawn up a married couple is automatically deemed to be ‘’in community of property’’ and this can be disastrous not only from the point of view of the kind of arguments it may provoke in terms of who is entitled to what, but it renders both spouses liable in the event of either partner-facing liquidation.

The better and most commonly opted for option, which is the fairest to both parties, is the Ante-Nuptial Contract (ANC) with accrual which protects the existing property of each spouse going into the marriage and provides for an equitable share of any assets accrued within the period of the marriage.

Financial considerations

Many failed marriages are a result of constant arguments due to not being financially aligned with one another. Just a few things to know regarding finances before you tie the knot so that you can have a better chance of shared growth and peace in the home are…

  • You must understand that your individual credit records going into a marriage do matter, tax returns are always submitted separately and S.A does not recognise a joint bank account
  • Meet with a Financial Advisor even before getting married to ensure your finances are in the right hands. He/she will encourage you to talk to each other about debt, spending, and short and long term financial goals.
  • Discuss currently owned property, insurances and investments with your Advisor so they can consolidate everything into the most beneficial wealth growth package going forward. This will always include not only pensions and investments to build a future but the protection of your family and finances as you grow.

Empowering the individual strengthens the collective

Hereford Group is renowned for our unique approach to financial assistance – that of recognising that every individual is different and through empowering the individual we believe we create better couples, teams and businesses, who all work and grow together.

Contact us to ensure that through setting a foundation of equity, shared growth and ultimately mutually accomplished aspirations in your golden years, your finances will always be on solid ground!


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