5 March 2025
Ayanda Ndimande, Head of Business Development at Sanlam Credit Solutions, says new enforcement measures could soon see parents who fall behind in maintenance support at risk of negatively impacting their credit scores. The new policy, introduced by the Department of Justice, comes as the country sees up to 70% of parents defaulting on maintenance payments within the first two years of court orders.
Ndimande adds, “While we’re still waiting for details on how the new policy will be enforced, it’s clear that failing to pay maintenance on time could lead to denied credit or lowering of one’s credit score. If you are divorced or separated and responsible for paying maintenance, it’s worth partnering with an adviser to review your financial planning in the context of your holistic financial responsibilities.”
The new maintenance enforcement mechanism was made possible by a Memorandum of Understanding (MOU) signed by the Department of Justice, the Consumer Profile Bureau and the Social Justice Foundation. It allows for the details of late maintenance payers to be shared with credit bureaus, making it harder for them to access credit, and, potentially, leading to credit applications being denied. This aligns with global trends of holding parents and guardians accountable through financial penalties.
Advocate Sankie Morata CFP, Chief Executive of Sanlam Trust, points out that the financial penalties will also extend to deceased estates. If defaulting parents pass away before fulfilling their court-ordered financial obligations to their children, the children or their guardians can sue the parent’s estate for the outstanding amount. This becomes a valid claim against the deceased estate.
Divorce can be a major ‘life disruptor’ causing considerable financial change. Ndimande suggests, “Work with a trusted financial adviser to review your budget and prioritise your responsibilities to children and other major commitments.
“It’s well worth downloading your credit report for an overview of all credit activity. This gives you a starting point to spot debit orders or store accounts you no longer need and ensure all your information is correct. If you’re considering taking on more credit, work with an adviser or a credit coach to see how much this will stretch you. Can you still comfortably afford monthly maintenance obligations when factoring in loan repayments? Work out what you can realistically afford and avoid taking on more debt if it could leave you financially stressed. You don’t want to compromise your credit score, credit worthiness and future credit applications. With credit, payment consistency is always key.”
Ndimande adds, "Our credit coaches are always on hand to offer free support to help people build their credit confidence by understanding their options and affordability. Divorce and separation can feel lonely and daunting. It can be reassuring to work with a professional to know your options and ensure your major financial commitments – like maintenance – are met.”
