Married In Community Of Property

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Married In Community Of Property Explained :

What Does It Mean?

Marriages in community of property are a common and cheap option for many people, but they have major flaws.

If you marry someone without an antenuptial contract, you will automatically be married in community of property.

In this type of marriage, the spouses’ assets (what they own/assets and any debt/liabilities) are combined and each partner has the authority to dispose of the assets ; they are co-managers of the joint estate.

Each person owns an undivided or indivisible part of the communal or joint estate.

Assets

The joint or common estate includes any assets owned by the spouses before they married, as well as any assets acquired during their marriage.

Certain assets may not be included in the joint estate in certain circumstances.

For example, if a will states that an inheritance is not to be included in the joint estate, the inheritance will not be included.

Liabilities

The shared estate’s liabilities include those incurred by both spouses before and during the marriage.

As a result, if one spouse enters the marriage with a significant amount of debt, that debt will become part of the community estate.

Accumulated debt might come from contractual debt, a prior relationship, marriage-related debt, and even extramarital child support.

Through their actions, each spouse has the power to tie the joint estate together.

Example : If a spouse has his or her own firm and seeks an overdraft, and the firm does not pay the overdraft, the joint estate may be pursued for compensation.

However, under certain circumstances, the consent of one spouse is required before the other can bind the common estate.

A creditor can lay a claim against the private estate of a spouse if he or she binds his or her separate estate, such as a car or business, through debt.

Only after the private estate of that spouse fails to meet the creditor’s claim may the creditor lay a claim against the common property.

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