Ever wondered what would happen if your husband or wife was declared insolvent?
And what if you just so happened to be married in community of property?
In financial planning this could cause problems for the solvent spouse, and here’s why…
When a husband and wife are married in community or property, they become one big joint estate.
When either the husband or the wife is sequestrated, the remaining spouse is also sequestrated.
What’s even worse is that – any property which is inherited via a will and excluded from the joint estate in terms of that will – forms part of this joint insolvent estate!
So what’s the takeaway?
If you’re about to get married in community of property…decide on whether you’re willing to be completely transparent when it comes to disclosing your financial situation to your spouse.
If you’re already married in community of property… make certain that your spouse is completely open and transparent in disclosing his or her financial situation with you.
Don’t ever take the attitude of “we’re both ‘grown-ups’ and can handle our own finances without needing to consult each other” – someday this might just come back to bite you!
Next we’ll discuss the situation when married out of community of property.
Related posts:
- Financial Planning | What Happens If You Pass Away Without A Will?
- For Better Or For Worse…We’re Married In Community Of Property!
- Financial Planning | How Does Insolvency Impact ANC Marriages?
- We’re Getting Married Soon…Tell Us About Antenuptial Contracts!
- Financial Planning | Love, Marriage, And The Accrual System
Article by Lawrence
Someone, who as he gets older, finds he has more questions than answers
Lawrence has written 150 awesome articles for us at Insurance Fundi
