Clean Break Agreement Template for South Africa

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Key Requirements PROMPT example:

Clean Break Agreement

"I need a Clean Break Agreement for a divorce where both parties own shares in a family business, and there are significant pension interests to be divided by March 2025; the agreement must include comprehensive valuation mechanisms for the business interests."

Document background
The Clean Break Agreement is a crucial document in South African divorce proceedings, designed to achieve a final and complete separation of the financial affairs between divorcing spouses. It becomes necessary when parties decide to divorce and need to formalize the division of their assets, liabilities, and financial obligations. The agreement must comply with South African legislation, including the Divorce Act, Matrimonial Property Act, and Pension Funds Act. It covers all aspects of financial separation, including immovable property, movable assets, pension interests, business interests, and mutual waivers of future claims. The document is particularly important in cases involving pension fund divisions, as it allows for the immediate settlement of pension interests as per Section 37D of the Pension Funds Act. Once approved by the court, it becomes a binding order that provides legal certainty and finality to the financial aspects of the divorce.
Suggested Sections

1. Parties: Full details and identification of both spouses entering into the agreement

2. Background: Details of the marriage, including date and property regime, and confirmation that parties intend to divorce

3. Definitions: Definitions of key terms used throughout the agreement

4. Acknowledgments: Parties' confirmation that they understand the agreement's implications and have received independent legal advice

5. Division of Joint Estate: Detailed provisions for how the joint estate will be divided, if applicable

6. Immovable Property: Arrangements regarding any real estate owned by either party

7. Movable Property: Division of vehicles, furniture, and other movable assets

8. Financial Accounts: Treatment of bank accounts, investments, and other financial assets

9. Mutual Waivers: Parties' waiver of future claims against each other's estates

10. Tax Implications: Acknowledgment and handling of tax consequences

11. Implementation: Practical steps and timeframes for implementing the agreement

12. Costs: Allocation of legal and other costs related to the agreement

13. General Provisions: Standard contractual clauses including entire agreement, amendments, governing law

Optional Sections

1. Pension Interest: Required when pension interests need to be divided, including details of pension funds and allocation

2. Business Interests: Needed when either party owns business interests that need to be addressed

3. Maintenance Arrangements: Required when there are maintenance obligations to be recorded

4. Joint Liabilities: Needed when there are joint debts to be allocated between parties

5. Foreign Assets: Required when parties own assets in other jurisdictions

6. Children's Arrangements Note: Brief reference to separate parenting plan/children's arrangements if applicable

7. Insurance Policies: Required when there are life insurance or other policies to be divided or transferred

8. Restraint of Trade: Needed when business interests require protection post-divorce

Suggested Schedules

1. Schedule A - Immovable Property Details: Detailed list and descriptions of all immovable property including title deed numbers

2. Schedule B - Movable Property Inventory: Comprehensive list of movable assets allocated to each party

3. Schedule C - Financial Accounts Schedule: List of all bank accounts, investments, and financial products with account numbers

4. Schedule D - Pension Interests: Details of pension, provident funds, and retirement annuities including fund numbers

5. Schedule E - Outstanding Liabilities: List of all debts and liabilities with allocation between parties

6. Appendix 1 - Supporting Documents: Copies of relevant certificates, title deeds, and account statements

7. Appendix 2 - Valuation Reports: Any professional valuations of property or business interests

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
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Legal Services

Financial Services

Real Estate

Insurance

Banking

Pension Fund Administration

Property Valuation

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Family Law

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Legal

Compliance

Family Law

Property Law

Financial Advisory

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Risk Management

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Family Law Attorney

Legal Counsel

Divorce Lawyer

Pension Fund Administrator

Financial Advisor

Estate Planner

Property Lawyer

Conveyancing Attorney

Actuary

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Compliance Officer

Risk Manager

Property Valuer

Settlement Officer

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