THE BIG 5 'D's
These 5 "D's" will most likely happen to you or a family member at some point during your life time and the better prepared you are for it, the easier to re-build your chateau.
· Arsenic is traceable. (Yes it is a joke
· You can own anything as long as your
name is written on it.
· Being a widow could be a disaster.
· There are legal frameworks that
should protect you.
· Can you create a legacy?
· Antibiotics did not exist.
· Women could not own anything unless
they were widowed.
· Being widowed was an opportunity.
In the 19th century a lot of young men died simply because antibiotics did not exist. Today death will still happen with or without antibiotics but the question is, would you be able to financially survive your spouse or partners death? Marriage regimes exist today which gives the impression that you are financially protected. This could be the most important piece of paper that you will ever sign so best you pay attention and understand what it is that you sign up for.
Getting married is a huge financial decision and there are a few options to consider.
Out of community of property (ANC) - you share in no wealth and also in no debt. What's yours is yours and what's mine is mine.
Out of community of property with accrual (ANC with accrual). From date of marriage you share in the accumulated wealth but you are not liable for your spouse's debts. Only the debts that you signed for.
In community of property. You share all the wealth and all the debts equally.
ANC with accrual after a period of time. Yes you can agree to get married ANC with the accrual only taking effect for example 3
years after date of marriage.
Financial Emotional IQ Check:
* Marrying out of community of property and believing that my partner will take care of me financially. This is an emotion and you have no guarantee.
* Marrying out of community of property believing that it will reduce your risk when your business fails or you default on debt, is indeed smart, but then make sure you also own a house or other assets. When all the assets are registered on one partners name only, you have not reduced your risk you have increased it two fold on one partners balance sheet.
* Marrying ANC with accrual and all the assets are registered on one partners name. You are setting yourself up for an expensive paper war when you divorce. This also leaves you with an empty balance sheet and a ZERO credit record.
* The smart Financial Emotional IQ decision to make here is to plan. IF...none of the above 5 "D's" happen or affect your life then you would most certainly not look like a fool nor be out of money. If am right, then pop the bubbly at a suitable and appropriate time.