Are you considering debt review? Perhaps you're concerned about how it might impact your spouse? Debt review can be a solution for you, but it's essential to understand how it works.
By understanding how debt review functions within different marital regimes, both you and your spouse can be better prepared to tackle financial challenges as a team.
Marriage and Debt
The impact of debt in a marriage depends on the marital regime under which the couple is married.
Marriage in community of property
In a marriage in community of property, all assets and debts are shared equally (50/50) between the spouses. This means that any debt incurred by one spouse is considered joint debt, and both are responsible for it. Therefore, if one spouse applies for debt review, it directly affects the other since their finances are legally shared.
Impact on your spouse:
Both credit records will reflect debt review.
Joint assets may be used to settle debts.
Both spouses must agree to and participate in the debt review process.
Marriage out of community of property without accrual
In this marital regime, each spouse maintains separate ownership of their assets and debts acquired before and during the marriage. Debt incurred by one spouse is not automatically shared by the other.
Impact on your spouse:
The spouse without debt will have an unaffected credit record.
The spouse without debt will retain their assets.
The spouse going through debt review will handle their debt independently.
Marriage out of community of property with accrual
This marital regime allows spouses to keep their premarital assets and debts separate. However, any assets acquired or debt incurred during the marriage are divided equally.
Impact on your spouse:
Only debt incurred during the marriage affects both spouses.
Premarital debt remains the responsibility of the individual who incurred it.
Assets accumulated during the marriage may be considered in the debt review process.
How Debt Review Protects Spouses
Debt review offers various protections for couples:
Legal Protection: It provides legal protection by preventing creditors from taking legal action once a debt review application is filed. This protection also applies to joint debts.
Affordable Repayments: Debt counsellors work with creditors to negotiate lower monthly repayments, making it easier for couples to settle their debts while managing household expenses.
Financial Relief: By restructuring debt repayments, couples can avoid severe financial hardship.
Important Considerations
Joint Decisions: In marriages in community of property, both spouses must agree to debt review.
Open Communication: Couples should maintain open communication about their financial situation to ensure both parties are aware of and involved in managing debt.
Professional Guidance: Consulting a debt counsellor, like those at Skuldhulp, can help couples fully understand the debt review process.
How Can We Help?
Let Skuldhulp’s counsellors thoroughly assess your finances for free. We can consolidate your monthly payments and reduce your debt, providing immediate financial relief.
Contact us today!
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