February is hailed as the month of love and the associated romance often leads to relationship milestones. But in 2025’s complex financial landscape, expressions of love increasingly need to be balanced with sound financial planning. Whether you choose to get married or simply cohabit forever, understanding how to build and protect your shared wealth has never been more critical.
Marriage and Property Rights
In South Africa, couples have three primary legal frameworks to choose from when marrying:
- In Community of Property – All assets and liabilities are shared. Both partners need each other’s consent for major financial transactions.
- Out of Community of Property with Accrual – Each spouse retains individual ownership of assets acquired before the marriage, but wealth accumulated during the marriage is shared if the marriage ends.
- Out of Community of Property without Accrual – Each spouse maintains full ownership of their assets, both before and during the marriage.
Each of these options carries significant implications for financial autonomy and asset protection. However, failing to plan for potential financial separation can have devastating consequences.
Fortunately, as situations change, your matrimonial property system can change as well. Provided certain criteria are met, couples can apply to change their matrimonial property system to better suit their financial needs.
Modern Relationships and Financial Protection
Marriage has become an increasingly unpopular option for couples building a life together. However, this shift in social norms has created new challenges in protecting shared financial interests. Unmarried couples who separate face significant legal hurdles in claiming their fair share of jointly accumulated assets, so it is important that people who are cohabiting have proper contractual arrangements in place.
For instance, if an unmarried couple separates after years of living together, assets such as shared household items or property registered in one partner’s name may be completely lost to the other partner, regardless of their contributions. While a claim does exist for cohabiting partners against their deceased partner’s estate, without a contractual relationship in place – for example, the contractual remedies offered by the universal partnership – there are very few safeguards upon separation.
Family Trusts: Proceed with Caution
Family trusts continue to be a popular vehicle for asset protection in South Africa. It is a fact though that many family trusts have operated informally and recent regulatory changes have intensified scrutiny that may have legal and tax implications. So, whether you are in a trust with your family or with your spouse or partner, you need to understand how these regulations affect your trust.
Trusts are subject to tax and should thus be filing tax returns. In this respect, there is collaboration between the South African Revenue Service (SARS) and the Master’s office where beneficial ownership registers must be filed, leading to increased tax compliance requirements and potential penalties for non-compliant trustees.
To navigate these challenges, it is advisable that trusts include independent professional trustees who don’t benefit from the trust. Financial advisors often serve this role effectively, bringing both expertise and objectivity to trust management. This requirement helps ensure proper governance, better protection of trust beneficiaries and avoidance of personal liability for trustees.
Investments and Divorce: Planning for the Unexpected
When it comes to investments, South African law allows for division based on the terms of the investment agreement. In divorce cases, policies held in both names are split accordingly. However, if an investment is in one person’s name, an unmarried partner may have no claim to it.
The Importance of Financial Planning
The key takeaway is clear: whether married or unmarried, individuals must proactively manage their financial security. Having a dedicated financial advisor can help navigate the complexities of wealth management, tax obligations and asset protection.
Love and money are deeply intertwined and failing to prepare for financial realities may have serious consequences. The best approach is to remain informed, seek expert advice and ensure all major financial commitments are legally protected. In 2025, financial literacy is not just an advantage – it is a necessity for anyone looking to build a secure future with their partner.
By Megan Gedye
Legal Advisor: Consolidated Wealth
