Love may be blind – but creditors aren’t!
More and more people (especially women) are getting into debt and losing their life savings – all in the name of love.
The Tinder Swindler documentary which recently aired on Netflix, has given rise to some very funny memes on social media, but in reality, it isn’t a laughing matter.
In this true-crime drama, the spotlight shone on vulnerable women across the globe who were scammed out of millions of dollars by a conman preying on their vulnerabilities.
Though none of these victims were from South Africa, this is not a new phenomenon on our shores.
STD (Sexually Transmitted Debt) is real and happening all around us, not only in movies.
Many also don’t realise the implications of being married in community of property (COP).
If you and your spouse are married in-community-of-property, it means that you share a joint estate that is made up of your respective assets and liabilities, including those that accrued before your marriage. This includes your debt.
Many South Africans are unaware that this is the default marriage regime in the country, and are therefore surprised to learn of the consequences of COP marriages.
Many people think that they are saving money by not having an antenuptial contract drawn up by an attorney before marriage.
However, this cost-cutting measure can often have huge financial implications down the line.
Especially if one party is declared insolvent or creditors come after one party for debt owing, as both parties will be liable for the outstanding debts.
When married in COP, and the affected spouse cannot honour the debt, the other party in the marriage can be held responsible for the full debt, not only 50%.
For example, this means that you are liable for your hubby’s night out with friends, and expensive gifts and meals with his girlfriend, if he used his credit card to pay for it.
Attorney Rynhardt de Lange explains that in terms of Civil Marriages, there are basic types recognised in South Africa.
1. In Community of Property (COP):
The husband and wife’s estate is seen as one estate.
This is the basic form of a civil marriage and you are (by default) married in community of property – if you do not enter into an antenuptial contract before marriage.
You will need your spouse’s consent before you enter into a credit agreement.
2. Outside of Community of Property with accrual:
You will enter into an antenuptial contract before you get married. All assets that you gathered before the marriage are your own and all assets gathered during marriage are shared equally.
The estates of the parties are seen as two separate estates.
3. Outside of Community of Property without accrual:
You will enter into an antenuptial contract before you get married. All assets gathered before and during marriage are not shared.
The estates of the parties are seen as two separate estates.
Although there are many different religions and cultures in our country, marriages must be registered with the Department of Home Affairs, in order to be recognised.
The rule is simple – if you have a registered marriage and you don’t have an antenuptial contract in place, then you are married IN community of property.
If you are not married – but take out a loan (in your name only) for a partner or friend – it doesn’t matter whether you remain in the relationship or not, you are responsible for repaying that debt.
With this scenario, I have seen too many women get the short end of the stick – and it often happens with loans and vehicle finance.
Bokkie, don’t put a car in his name when it is your name on the credit contract. He will be driving around with his new girlfriend in that car already, while you will still be paying for it.
Also be careful of love interests and friends asking you to “quickly get some cash” for them via a loan. These people usually promise to pay you back soon – or “when their ship comes in” – but often disappear once they get the money.
Meanwhile the creditor will want monthly repayments from you.
If you have some money in reserve, be particularly vigilant of people looking to be friends and wanting to get into a relationship with you. Your kind heart could make you lose your life’s savings.
Often those who get swindled are filled with such guilt and shame for falling victim to con artists that they rather keep quiet and let the perpetrator get away with it.
The problem with this, is that these skelms end up just moving onto the next vulnerable victim.
Let’s try not to judge the victims too harshly.
These con artists have serious skills and can be very persuasive.
Love may be blind – but creditors aren’t!
Be vigilant. Do your homework and rather be safe than sorry.