Protect your financial independence: Understand what you sign

Financial independence is a vital aspect of a woman's life, often measured by her earnings, savings, and assets. However, it is crucial for women to understand the legal documents they sign, as these can sometimes jeopardize their independence. A guide by Werksmans Attorneys highlights the risks associated with various agreements, such as becoming a surety, taking on credit for someone else, marriage arrangements, property purchases, and settlement agreements.

Nedbank's Khensani Nobanda emphasized that financial freedom is not just about having access to financial products, but about having the agency to make financial decisions independently. When women take on financial commitments for others, such as becoming a surety, they become responsible for another person's debt if they fail to pay. This can occur in various relationships, including marriage, partnerships, and familial ties.

Before signing any agreements, it is crucial to ask oneself if they could afford to repay the debt if the borrower never made another payment. This applies to personal loans, vehicle finance, credit cards, and store accounts, all of which are considered credit agreements under the National Credit Act. If the other person fails to repay, the person who signed remains liable.

Marriage also has significant financial implications. Unless an antenuptial contract is signed before marriage, the couple will be in community of property, meaning they share a joint estate, including liabilities. It is essential to obtain legal advice before marriage to protect one's financial future.

Property and settlement agreements require careful consideration as well. Buying property involves various costs, including transfer duty, conveyancing fees, and bond registration. Settlement agreements can result in the loss of legal rights or compromised claims. Motsiri and Nyoni emphasize that property ownership is a clear expression of financial independence and a substantial financial commitment.

Financial abuse can also impact a woman's financial freedom. This may manifest as a lack of control over her salary, bank account, or financial decisions. Financially abusive behavior can be difficult to identify, as it may resemble poor financial management rather than abuse.

Nedbank's Chief Risk Officer, David Crewe-Brown, pointed out that financial abuse can create a credit footprint similar to poor financial behavior. Missed repayments, accumulating debt, or irregular income might appear as credit risks but could actually be indicators of financial abuse. To protect financial independence, women must carefully read contracts, ask questions, and seek legal advice when needed. Understanding the fine print is essential in building and maintaining financial freedom.