Divorce Financial Planning and Fair Settlement
- Mediation Academy
- Mar 11, 2024
- 3 min read
Updated: Jun 6
How to Achieve a Fair Financial Settlement During Divorce in South Africa
Can I divorce without a financial settlement, and how do I plan for a fair one?
Divorce and financial planning go hand in hand. While it is legally possible to divorce without a financial settlement, it is not advisable. Unresolved financial matters can lead to long-term disputes and financial instability. A fair divorce settlement in South Africa requires full financial disclosure, careful division of assets, and consideration of spousal maintenance and child maintenance. This guide outlines the key steps to secure a transparent and secure divorce financial settlement.
Start with Full Financial Disclosure
Every fair settlement begins with honesty. Both spouses must disclose their income, assets, debts, and monthly expenses. This includes properties, vehicles, investments, business interests, savings, and loans. Without full disclosure, any agreement reached can be challenged in court.
Division of Assets in Divorce in South Africa
How assets are divided depends on your marital regime:
In community of property: Everything is shared equally. Read more about mediating divorce in community of property
Out of community with accrual: Only the growth of assets during the marriage is shared. Learn more about divorce mediation for couples married out of community of property with accrual
Out of community without accrual: Each person keeps their own assets and liabilities.
Understanding your contract helps guide a fair divorce settlement. Accurate asset valuation is essential, especially for property, businesses, and retirement funds.
Spousal Maintenance: Know Your Rights
Spousal maintenance is not automatic in South Africa. It depends on factors like the length of the marriage, each person’s earning capacity, and the standard of living during the marriage. One spouse may be entitled to support if they are unable to support themselves. The goal is to ensure financial fairness without creating dependency.
Child Maintenance in South Africa
Child maintenance in South Africa is a legal duty. Both parents must contribute according to their income and the child’s needs. This includes school fees, food, housing, clothing, and medical costs. It is calculated separately from spousal maintenance and is non-negotiable.
Planning for Divorce Financially: Think Long Term
Planning for divorce financially is not just about short-term survival. Consider the future implications of every decision. This includes retirement savings, tax responsibilities, medical aid coverage, and updates to your will. A long-term view ensures stability and peace of mind after divorce.
Use Professionals to Help Guide the Process
Divorce is emotional and complex, but you do not have to do it alone. Financial planners, accountants, and mediators with divorce experience can offer practical advice and options. Mediation encourages cooperation and can lead to faster, less expensive solutions. Experts help ensure your divorce financial settlement is realistic and sustainable.
Final Legal Review Before You Sign
Before finalising your agreement, have it reviewed by a legal professional. This ensures it meets legal standards and protects your rights. Once signed and approved by the court, your agreement becomes legally binding. A sound agreement gives both parties closure and security.
Protect Your Financial Future
Whether you are asking can I divorce without a financial settlement or preparing to separate with clarity, the answer lies in strong divorce and financial planning. Understand your rights, disclose honestly, and seek expert help. Addressing spousal maintenance, child maintenance, and the division of assets in divorce in South Africa sets the foundation for a stable and fair future.
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