There are two aspects people have to consider when they are in a romantic relationship in regards to money. according to Neil van der Walt, marketing manager, DebtSafe.
The first is having open communication and regular discussions about their current financial or debt situation; and, the second is taking steps to reach financial goals as a couple.
If one or both partners in the relationship have debt they should seek the help of professionals to go through the regulated and legal process of debt review to get out of that situation.
Van der Walt shares some insights about the debt review process to help couples make informed decisions:
1. For a person to consider debt review as an appropriate solution to fix their debt two things are required:
– a stable form of income is necessary; and
– a registered debt counsellor has to declare you (or your partner, or both) over-indebted.
People can ask for a free, no-obligation assessment to see if the repayment plan will indeed suit their or their partner’s needs and goals.
2. If a couple decide that debt review can help them to reach their specific financial goal, such as fixing their debt situation, then they need to be communicating with their registered debt counsellor and sticking to the repayment plan.
3. Even if a couple is not married but are in a romantic relationship, they are both responsible for debt obligations that they both signed; therefore, both of them will have to apply for debt review.
“However, if only one party is over-indebted, it will either be only you or your partner who will have to go under debt review,” Van der Walt said.
If married, here’s what the couple needs to know:
Community of property (COP)
According to Van der Walt, if a couple is married in community of property (COP), the application will be a combined one, and all the debt will be added into one pool.
Van der Walt said: “Both of your income amounts will also be included in the calculations. And the payment of all your debt will be joined into one single instalment.”
Ante-nuptial contract (ANC)
“If you are married out of community of property (ANC), both parties do not have to go under debt review,” Van der Walt said.
“Your spouse will not be affected – only your finances and personal information will be considered. If, however, there are debts that you are both responsible for, then you will both have to go under debt review.”
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