THOUGHT OF THE WEEK I'm married out of community of property so I'm not affected by my spouse's sequestration, right? Wrong!
Not only the spouse of a person married out of community of property, but also a spouse married according to any law or custom, and even those who are unmarried but have been living together as husband and wife for some years, can be subjected to the consequences of the other party’s insolvency.
The Insolvency Act empowers the Trustee to deal with the property of the solvent party as if it belongs to the insolvent’s estate and both parties’ assets will initially vest in the Trustee. Only on application by the solvent spouse to the Trustee, can assets belonging to the solvent spouse be released to that spouse. A solvent spouse is therefore unable to transfer property belonging to him or her before it has been released by the insolvent’s Trustee.
Get professional assistance when dealing with property that has vested in a Trustee of an insolvent’s estate. Contact us at www.stbb.co.za
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