Divorce is not the only scenario in which you can be affected by whether you married in community of property or out of community of property, according to attorney Simon Dippenaar.
He points out that another major event to consider is insolvency.
What is insolvency?
He explains that insolvency is not the same as bankruptcy, although the terms are often used to mean the same thing. One is a financial state; the other is a legal procedure.
Someone is insolvent when they are unable to pay their debts, either because their liabilities exceed their assets, or because they have insufficient cash flow.
Bankruptcy
Bankruptcy, on the other hand, occurs when one of the following takes place:
- A person or legal entity – that is a close corporation or comp…
Read the full article at: https://www.fin24.com/Money/Debt/how-insolvency-affects-a-spouse-and-a-business-20190304