Assignment 2 Semester 1 2026
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Due Date: 24 March 2026
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, QUESTION 1
The main aim of section 21 is to protect creditors from dishonest dealings between
spouses during insolvency. It prevents an insolvent person from hiding assets by
claiming that those assets belong to their solvent spouse. To do this, section 21
allows the Master or trustee to temporarily take control of the solvent spouse’s
separate property as if it were part of the insolvent estate. Although this transfer is
not permanent, the solvent spouse loses their normal rights over that property until it
is proven that it rightfully belongs to them.
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