Bianca and Annika Strydom, #Finntwinz Financial Advisers at PSG Wealth

When love is fresh, optimism is sky-high. Unfortunately, so is financial risk. This is according to PSG Financial Advisers, Bianca and Annika Strydom, #Fintwinz, who say that too often this risk is ignored.

“When people fall in love, they operate from optimism. The assumption is permanence,” says Bianca. “Unfortunately, this is where costly relationship mistakes begin.”

The #Fintwinz say one of the first mistakes couples make is failing to talk about money early. “Couples will discuss wedding venues before they discuss debt, spending habits, risk tolerance, financial goals or credit scores,” says Annika.

From there, financial entanglement can happen quickly and dangerously. “Too many people jump into opening joint accounts, sharing credit facilities or funding a lifestyle upgrade without any set structure in place,” notes Bianca. “But love doesn’t guarantee legal protection.”

Property purchases are another high-risk area. Buying a home together without a cohabitation agreement or buy-and-sell clause leaves critical questions unanswered: who owns what, who paid the deposit, and what happens if one person wants out? “When it’s not clear upfront, the complexity will only compound down the line,” says Annika. “And any additional emotional and legal complexity will make it more expensive to resolve.”

Then there is the risk of signing surety or guaranteeing debt for a partner. “One partner essentially takes on risk for love,” says Bianca. “They sign surety for a partner’s business, co-sign vehicle finance or take joint personal loans. Very romantic at the time, but financially brutal later.”

And if the relationship doesn’t last, decision-making tends to go from bad to worse. “This is where wealth destruction accelerates,” says Bianca. “People sell investments at the wrong time, break fixed-term investments prematurely or make financial decisions to punish the other person. They want closure, but the tax consequences and loss of compounding are permanent.”

Couples fight over houses, businesses and cars instead of focusing on cash flow, liquidity and long-term sustainability. Dragged-out settlements can cost more in legal fees than the value of the disputed assets. “Winning the house but having no income to maintain it is not a victory,” says Bianca.

So how can couples avoid such a financial mess? The #Fintwinz’ advice is simple: have the hard conversations early and make sure everything is structured clearly and fairly.

“If you are not married, have a cohabitation agreement and clearly document ownership of assets and unequal contributions. Protect business interests with buy-and-sell agreements and consider trusts where appropriate,” says Annika. “And if you are getting married, choose the correct antenuptial contract structure and align it with your long-term wealth plan.”

In South Africa, the choice of matrimonial property regime can define wealth outcomes for decades. Getting married in community of property or out of community, with or without accrual, without understanding the long-term implications can create unintended exposure to business risk, debt risk and estate liquidity problems.

“Be sure to keep some financial independence,” adds Bianca. “Have joint goals but maintain separate credit profiles.”

Above all, the #Fintwinz urge people to protect their retirement assets. “Never liquidate retirement savings during emotional transitions unless absolutely necessary,” says Bianca.

“The real truth is love is emotional and money is mathematical,” the sisters conclude. “The most expensive financial mistakes aren’t bad investments; they’re emotional decisions made during life transitions. Statistically relationships can change, but your wealth plan must survive that possibility.”