Assignment 2 Semester 1 2026
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Due date: 24 March 2026
QUESTION 1
The main purpose of Section 21 is to prevent dishonest collusion between spouses that
could harm the rights of creditors when one spouse is declared insolvent. 1 It allows the
Master and, later, the trustee to take temporary control of the solvent spouse’s separate
property, treating it as if it belonged to the insolvent estate.1 This is to ensure that assets
are not unlawfully hidden or transferred under false claims of separate ownership.
However, the solvent spouse may reclaim their property if they prove legal ownership in
terms of Section 21(2). This mechanism ensures fairness and transparency in the
distribution of the insolvent’s estate.
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