Debt Review and Marriage.

What should I do when my partner is over-indebted, but I am not?

Planning your financial future with your partner is a big part of any relationship. What will happen when things don’t always work out as planned? Your partner might be over-indebted and you are both facing the decision of going under debt review in order to better your financial situation. What are your options, should you not be over-indebted?

In this article we will discuss your available options when facing debt review with your partner and all the important information. What should I do when my partner is over-indebted, but I am not?


What does the Law say?

Firstly, it is important to understand what the law states concerning marriage and debt. This differs depending on how you are married.


How does debt review apply when you are married in community of property?

In the event that you are married in community of property (CoP) or according to a traditional marriage, both you and your partner will have to apply for debt review and follow the process together. Regardless whether or not both of you are over-indebted or not. This is due to the fact that when married in community of property, as a couple, you are classified as one single joint estate, according to the law. Therefore, all assets and debt are considered as joint too.

It is very seldom in this situation that only one of you would be over-indebted, usually both partners are over-indebted due to the fact that the debt belongs to both of you.

Once you and your partner enter into debt review, both will be responsible for the repayment of the restructured monthly installment.


How does debt review apply when you are married with a marital contract in place?

If you are married with a marital contract, you usually have a bit more freedom. You are then not obligated by law to go under debt review together with your partner and they can apply on their own for debt counselling. Your combined monthly household income (that includes your partner’s and your income) will however be taken into account when a structured payment plan is worked out by your debt counsellor.

There are still other elements to consider in this instance. The debt review process could still affect you. In the case where your partner wants to include debt that you are both responsible for (both signed the credit agreement) you will then both need to apply for debt review together regarding said debt. These are usually debt like Home loans and Vehicle finance.


An alternative solution to Debt Review in this case would be Voluntary Debt Restructuring(VDR). a Solution similar to debt review, where you can restructure certain debt that is causing you to experience difficulty managing your debt.  YOu can read more on the defirences between Debt review vs VDR here.

As there are many elements involved in a marital contract, your debt counsellor will be able to guide you and provide you with the necessary information. Each situation can be different depending on your marital agreement and whether the debt was made together.


What next?

When facing the fact of your partner being over indebted, it is important to understand the pros and cons of the debt review process.

With debt review you get the benefit of lowering the required monthly debt installments. Your debt gets consolidated into one easy, affordable payment. With the help of Cyber Finance, we will guide the two of you on how to reorganize your budget and help you cut down on costs while putting some money back in your pocket for the more important things in life.

Under the debt review process you are legally protected against your creditors. They will not allowed to contact you directly or be able to repossess your assets. You will then finally have peace of mind, knowing your debt is being taken care of and you and your belongings are protected.


While under debt review, the affected party(s) will not be able to make new debt, but this is to ensure that the debt gets paid off in the fastest possible time.

Debt review can give you a second chance to better your financial situation. Once you have completed the debt review process. No one will know that you were under debt review as you will have a clean credit record. We will issue you with a clearance certificate once you are no longer over-indebted.

Should you have found this article informative and wish to learn more, feel free to contact us for an obligation free consultation.

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