Q

Hi, my fiancé and I have a joint bond. He is the one paying the bond, in fact money is being deducted from his account. What will happen if one partner passed on? We have a home loan life cover. Kind regards – Mpho

A

Hi Mpho, applying for a joint bond means that you are equally responsible for the repayment of that debt, regardless of how you decide to split your financial responsibilities as a couple.

If you enter into a joint bond with a person to whom you are not married, the implication is that you are held jointly and severally responsible for the entire loan amount.

Where a bondholder dies, the surviving bondholder must immediately notify the bank of the death. It is prudent for a bondholder to take out sufficient life cover to settle the outstanding amount of the bond in the event of death of either party.

Got a burning question? Email mariette@hometimes.co.za and we will be sure to assist you

Who is Sonja du Toit?

Sonja du Toit, director at MC van der Berg Incorporated.

Sonja du Toit is a director at MC van der Berg Incorporated