How does Debt Review Affect Your Spouse? (2024)

When you decide to be placed under debt review you have taken a difficult but rewarding step. There are certain factors regarding debt review that you have to be aware of. One of these factors is how entering debt review can affect your spouse.

By fully understanding our South African Marriage Laws and how each marriage is viewed differently during debt review, will assist you in making informed and accurate decisions with your partner.

Let’s have a look at the different Marriages in South Africa

1. Debt Review while Married In Community of Property

When you are married in community of property, both spouses’ debt and assets will be combined into a joint estate.
What this means is, if one spouse decides to enter the debt review process it will automatically involve the other spouse as well.
The debt counsellor will consider your entire joint estate which will include both your incomes and expenses.
This is to ensure that they can create a manageable repayment plan that will be affordable for both of you.

Debt review under this marital arrangement means both spouses need to be on the same page financially. Any significant financial decision will affect both parties, and open communication is important.

On the positive side, this combined effort can lead to your debt being resolved faster as both incomes will be considered when negotiating a new repayment plan.

2. Debt Review while married Out of Community of Property without the Accrual

When you are married out of community of property without the accrual, your debt and assets will stay separate.
If the one spouse enters into debt review the other’s finances will not be directly affected.
This type of marriage allows for much more financial independence.

While financial independence is a great benefit, it’s also important to support your spouse through their financial challenges. By assisting and being there for your spouse during the process of debt review, can help you both get through these financial hurdles as a united front.

3. Debt Review while married Out of Community Property with Accrual

If you are married out of community of property with the accrual, means that the assets you each brought into the marriage remains yours. For example your car, if you own a home in your name, will remain yours. During the marriage all the assets accumulated together will be split equally if you ever divorce or separate.

How Does Debt Review Affect You Both in this Marriage?

Individual Debt: If you have debts in just your name, only your personal finances will be restructured while you are under debt review. Your spouse’s finances will not be affected.
Joint Debt: If you have debt together, for example you bought a house together, both of you will be placed under debt review. Your incomes and liabilities will be assessed to create a new repayment plan.

Tips for Couples Going Through Debt Review

Communication is vital: Being honest about your financial situation will help in building trust in your marriage and ensures that both of you work together as a team to resolve your debt.

Realistic Goals: Sit together and create a realistic budget that reflects your new financial reality. By doing this you can set achievable goals and celebrate small milestones.

Do research regarding debt solutions: Money management isn’t easy as we all struggle to remain afloat with inadequate salaries, inflation and high unemployment. Learning about better spending habits as well as how debt review can assist you both, empowers you to avoid future financial pitfalls.

Make an appointment with a Debt Counsellor: A reputable and registered debt counsellor will provide both of you with guidance and support regarding the entire debt review process. At Debt Rescue we offer a free no obligation assessment.

Only focus on your Future: Debt review is not permanent. It’s a solution that will ensure you are financially stable once you have completed the process. The time you will be under debt review varies depending on the amount of debt you have, however the process aims to have you debt free in 3-5 years.

This Journey is hard but worth it!

By supporting each other, you and your spouse can get through this challenging time together. Debt Review may seem tough, but with teamwork, and a shared commitment to recover financially, you will be able to find hope, and pave the way to a brighter debt free future.

How can we help you?

Are you struggling with debt while earning an income? If so, let our expert debt counsellors provide a no-obligation, cost-free assessment to consolidate and reduce your monthly repayments for immediate financial relief.