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Part 2 · Opening of insolvency proceedings. Recognised assets and parties to proceedings  ›  Division 2 · Insolvency estate. Classification of creditors › Section 37

Joint marital property of community of property

(1) If the joint marital property of a community of property is administered by one spouse only and insolvency proceedings are opened for the assets of that spouse, the insolvency estate encompasses the joint marital property. The joint marital property is not distributed among the spouses. Insolvency proceedings opened for the assets of the other spouse leave the joint marital property unaffected.

(2) If the joint marital property is administered by both spouses, insolvency proceedings opened for the assets of either spouse leave the joint marital property unaffected.

(3) Subsection (1) applies to a continued community, with the proviso that the spouse administering the joint marital property alone is replaced by the surviving spouse, and the late spouse by his or her descendants, respectively.

(4) Subsections (1) to (3) apply accordingly to life partners.

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