STD’s and how to prevent them.
You may be wondering what STD’s have to do with finances. Firstly, it has nothing to do with any disease but Debts (sexually transmitted debt). This can happen to both men and women but for this month we will focus on the female context. For this blog the focus is on a married woman though this can happen to parties that are romantically involved and unmarried if they take out debt in their name that will then be used by their romantic partner who then leaves them in the lurch.
Imagine this…you are married to the man who is the love of your life all is rosy at the beginning and …. a few years down the line life happens and you find yourself in a financial pickle. Suddenly you can barely cover your monthly expenses due to the high levels of debt. You are not sure how deep in debt you are and yet you are married in community of property. You try to broach the subject of debt and budgeting with hubby, and he is not coming to the party. You then seek out advice and are referred to a financial advisor who then looks at your finances and after assessing your budget and debt level they refer you to a debt councillor just to get you and your husband to have that dreaded financial conversation. Because of the severity of the situation, they advise you to go onto debt counselling and it is at this point that the complete level of debt is exposed to you and your husband. At this point you must deal with the shock and look at ways that can get you out of the rut. You agree to the formal process that will help you get out of debt. In this situation there is still some hope, and the couple will be required to work hand in hand to resolve the matter and now also need to tighten the belt until they can get back to financial health.
What could have easily happened is that you find yourself having to carry debt you did not create in the event of divorce and worse if he had passed on and left you with nothing but a pile of debt. Some have woken up to this reality. Not the greatest feeling right!
What should those preparing to get married consider before saying I do?
1. Open Communication About Money: Having open and honest conversations about money is essential. This involves discussing financial goals, spending habits, saving strategies, and attitudes towards debt. Understanding each other’s financial values can help prevent misunderstandings and conflicts down the road.
2. Education Planning: If children are part of the plan, discussing education planning is vital. Ensuring that both partners are aligned on how to save for their children’s education can help alleviate future financial strain. Another aspect is ensuring that there’s a shared approach to teaching children about money from an early age. This can contribute to their financial well-being in the future.
3. Marriage Regime Consideration: Understanding the different marriage regimes (such as community of property or out of community of property with or without accrual) is important. Each regime has its own implications for assets and liabilities, and partners should make informed decisions that align with their financial goals and risk tolerance.
4. Pre-nuptial Agreements: Rather than being solely about distrust or predicting divorce, pre-nuptial agreements can help protect both partners’ interests and ensure a fair division of assets and liabilities should the relationship come to an end. It’s a practical approach to addressing financial concerns.
5. Consulting a Financial Advisor: Seeking advice from a financial advisor can provide an unbiased perspective and help create a comprehensive financial plan. A financial advisor can offer insights into investments, insurance, retirement planning, and more.
6. Legal Assistance: Consulting with a lawyer who specializes in family law or estate planning can provide personalized guidance based on your individual circumstances.
7. Debt Responsibility: It’s important to understand that in many cases, marital debts are considered joint responsibilities regardless of who incurred them. This is why careful financial planning and communication are crucial.
8. Debt Awareness: Being cautious about signing surety on behalf of someone else and taking on debt on their behalf is crucial. It’s important to understand the potential legal and financial implications of such actions.
9. Financial Independence: While couples often share financial responsibilities, it’s also important for both partners to maintain some degree of financial independence. This can provide a safety net in case of unforeseen circumstances.
10. Estate Planning: Discussing estate planning and ensuring that wills are up to date is vital. This can ensure that both partners’ wishes are carried out in case of unexpected events.
By addressing these topics openly and honestly before getting married, couples can establish a strong foundation for their financial well-being and a more harmonious partnership overall. It’s worth noting that ongoing communication about finances is essential even after marriage, as financial situations and goals can change over time. It’s important to remember that every situation is unique, and there’s no one-size-fits-all solution. Taking the time to discuss and plan for these scenarios can help mitigate potential financial challenges in the future
Author:
Mirriam Papo (CA)SA
Financial Advisor
