3 Reasons Why Marriage "In Community of Property" Causes Friction

Marriage In Community of Property is the default system in South Africa. While it is based on the equitable concept of a shared estate, the legal restrictions it imposes often stifle financial growth and create conflict.

Here are the three main areas where this regime limits you.
1. Lack of Freedom to Trade
In the modern economy, agility is key. However, being married In Community of Property severely restricts your legal capacity to trade freely.
  • The Restriction: You cannot independently enter into many standard commercial transactions. The Matrimonial Property Act requires your spouse’s formal written consent for significant acts, such as purchasing immovable property, entering into credit agreements, binding himself/herself as surety, or selling certain assets.
  • The Friction: This administrative "red tape" can kill deals. If you need to act quickly on an investment or business opportunity, you are hamstrung by the need to track down your spouse for signatures. This lack of commercial independence often results in missed opportunities and professional frustration.
2. You Inherit Each Other’s Debt
The most dangerous aspect of this regime is that there is no distinction between "my debt" and "your debt." All loans, credit cards, and accounts incurred before and during the marriage become part of the shared estate.
  • The Friction: If one partner enters the marriage with student loans or poor credit habits, the prudent partner becomes equally liable. This shared burden is a massive source of anxiety, particularly when creditors start calling the "innocent" spouse for payment on debts they didn't create.
3. Exposing Your Spouse to Business Risk
For entrepreneurs, this regime is particularly dangerous. Even if your business is a separate entity (Pty Ltd), banks almost always require personal suretyship for business loans. Because you share a joint estate, signing surety binds both you and your spouse.
  • The Friction: You are effectively forcing your partner to gamble their financial security on your business ventures. If the business fails, the joint estate can be sequestered, meaning your spouse could lose their personal car, savings, and home. This constant underlying risk often forces the non-business spouse to live in fear of the "what if," stifling the entrepreneur's ability to take necessary risks.
Do you need to regain your financial independence?
It is not too late to protect your assets and your freedom to trade. Contact Louwrens Koen Attorneys to discuss registering a Postnuptial Contract.

Tel: 087 0010 733Email: info@louwrenskoen.co.zaWeb: postnuptialcontracts.co.za