Marital PDM

The first scenario is perhaps the most common and straightforward. This is where, apart from individual salaries, neither party brings any other property or financial resource into the marriage. In other words, all property and financial holdings are acquired within the marriage itself. Here discussions should centre on the benefits and limitations of separate, joint or hybrid (a mixture of the separate and joint) ownership of individual holdings. For example, bank accounts and motor vehicles may be separately owned, but the family home is jointly owned .

Available tax allowances and the ease of acquisition and disposal will be factors for consideration and maximization .

A guiding principle, applied to this and other scenarios, is that in the case of emergencies (medical, children and otherwise), when one partner is not accessible, the other should be in a position to galvanise all the necessary marital resources to effect the necessary solutions! Two areas which deserve special mention are, a wide or widening gap in individual incomes, especially when the wife’s is much higher, and the utilization of credit cards .

For both of these spheres, the marital essentials of an ever-deepening partnership and friendship remain the vital keys. The establishment of mutuallyacceptable, management rules and privileges, though needed, would not by itself guarantee success .

The second scenario is where one spouse, in addition to remuneration, brings a number of important possessions into the marriage, inclusive of house, car, considerable financial savings and investments. The other spouse may have only a salary, or no salary at all, to add. Again, this scenario is seen as more challenging when the materialrich spouse is the wife. Possible decisions include equalizing the marital asset base through full joint-ownerships, before acquisition of in-marriage holdings. Hybrid asset management may also be applied for legal and other reasons. The third option of leaving all pre-marital assets as separately owned and individually managed, though viable, may not be best, as this may leave the marriage without access to critical resources in the face of crises or unique, one-time opportunities .

The third scenario is one in which both partners own substantial pre-marital resources – often true of older brides and grooms. Some couples resort to prenuptial arrangements, where usage and enjoyment are jointed, but ownership remains separate. There may be practical reasons for this course of action, but it leaves an imposing “elephant in the room” to the full fusion experience of the marriage. It is hoped that the maturing trust of the marriage would reign supreme in the long term. Of course this situation is made much easier if the marital jointly-acquired assets far supersede the original individual holdings .

Finally, no PDM implementation would be completed without due attendance to the distribution and disposal of the accumulated assets. This can take place at any appropriate time during the marriage or on the passing of one or both partners. “During the marriage” is better as it reduces, minimises or eliminates any misinterpretation of the giver’s will, wishes or intentions. Failing the foregoing, or in addition to it, a formal legally-binding will should be drawn up and updated accordingly .

Successful property development and management remains two of the truest litmus tests of transparency, trust, friendship and partnership in your marriage. Let us pass both with _ ying colours!