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Month: August 2017

MHI IN THE WILD WILD WEST

MHI IN THE WILD WILD WEST

This year’s “Winterete” with the personnel and their other halves were held at Signal Gun in Durbanville. The venue was decorated in the Wild West theme and everyone was dressed the part.

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The Personnel committee made up of Zelda, Reinett and Wilna went above and beyond to plan a special evening.

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Stefanus even got the chance to shoot off the 300 year old canon.

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Kobus and Wilna with Hannes and Elna

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Denver, Liaan and Jessica smiling together. Chris and Michelle (Reception)

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 Reinett, Michelle and Anton

A fun filled, kick of boots evening was had by all the cowboys and cowgirls.

Hee-ha!

AM I STILL LIABLE FOR MY SPOUSE’S DEBT AFTER DIVORCE?

AM I STILL LIABLE FOR MY SPOUSE’S DEBT AFTER DIVORCE?

A husband and wife buy a house together. Their marriage takes a tumble, along with their ­finances, and they have to sell their home and are left with an outstanding mortgage bond. They subsequently got divorced. The couple is concerned about what will happen to the debts and who will be ­responsible for paying them.

Who pays what after divorce?

If the couple was married in ­community of property, the debt on the property is a joint debt. They will be jointly and severally liable. This means that each partner is not just liable for half the debt now that they are divorced, in fact the bank can seek the full amount from either of them. The one spouse who is held liable by the bank would then have a claim of 50% of the debt against the other, but it would be his or her responsibility to collect that debt (not the bank’s). Alternatively, the bank may agree to accept 50% from one person and release them from the ­liability, but it does not have to.

Sometimes, the divorce settlement makes a special mention of the mortgage. But if there is no clause in the divorce, the joint liability principle applies. After a divorce, the husband and wife should present their bank with a copy of the divorce settlement. This will remove any uncertainty about ownership and liability for bond payments.

Getting divorced while under debt review

If you get divorced while you are under debt review and you have the debt review court order in place, then this will need to be rescinded and for new debt counselling applications to be started, as in order to follow on with the debt counselling process you will need to reapply, but will now need to be seen as two single applications. A new budget and new proposals will also have to be drawn up.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

References:

“Debt And Divorce”. News24. N.p., 2017. Web. 12 June 2017.

“Debt Review After A Divorce Settlement – Debt Review”. Debtbusters. N.p., 2017. Web. 13 June 2017.

FEARING FORECLOSURE: WHAT ARE YOUR RIGHTS AS THE HOMEOWNER?

FEARING FORECLOSURE: WHAT ARE YOUR RIGHTS AS THE HOMEOWNER?

The recent junk status announcement has shaken us into a quick action of tightening our belts and letting go of luxuries to afford our day to day expenses. This financial condition inhibits the possibility of purchasing a new house, let alone affording your current home.  Have you thought about what you would do if your foreclosure wiped its shoes on your doormat?

You have the option to sell

Selling, rather than waiting for foreclosure, offers a greater possibility of you receiving greater value for your home. You may choose to sell privately or through an estate agent. It is advisable that your qualified conveyancing attorney be notified of any concerns, as well as any interests of potential buyers. During this time, look for alternative home solutions, and consider a suitable transfer date.

  • Prior to the signing of the agreement of sale and the transfer of ownership, the property still belongs to you.

You have time

Before receiving a foreclosure notice, the bank allows a grace period for you to catch up on your bond instalments. It may be difficult to do so, considering your finances have already been tightrope walking over the past few months. Meeting with your bank allows the opportunity for a payment restructure to be discussed and agreed upon.

  • The repossession procedure is paused during the time you are in application of or in debt review. The National Credit Act allows this opportunity.

Approach your lawyer

If, after attempting to recover payments, you receive foreclosure summons, contact your lawyer. As stated by section 26(3) of the South African Constitution, your eviction may not be finalised without an official court order. The courts consider all relevant circumstances before reaching a final eviction decision.

  • You may not be arbitrarily removed from your home.

You won’t be homeless

You have the right to adequate housing, despite your previous or current economic standing. Adequacy is determined by a place to eat, shelter, a place to sleep, and a place to raise a family, and this accessibility is the responsibility of the state. Following the outcome of the sale by the bank, the home is no longer in your ownership, and the state classifies you as an unlawful occupier.

  • The eviction process will then follow that of the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

References:

National Credit Act

Constitution of the Republic of South Africa [1996]

Prevention of Illegal Eviction from and Unlawful Occupation of Land Act [No. 19 of 1996]

UPDATING OR DRAFTING YOUR WILL

UPDATING OR DRAFTING YOUR WILL

This year is coming to an end at a rapid speed. There is still so much to be done before the December holidays and the last thing you want to think about now is your personal affairs, especially your will.

However, the reality is that according to the Road Traffic Management Corporation’s (RTMC) report from 1 December 2015 to 11 January 2016, 1434 fatal accidents occurred on South African roads and 1 828 persons died during this period.

It is extremely important to keep your will up to date, especially in changing circumstances, such as the purchase of a property or the birth of a child.

David and Vera has a 20 year old daughter, Anne, who lives with them while completing her studies. Their will, among other things, indicates that should they pass away at the same time, their estate will go to Anne.  They are of the opinion that she will at least have a home to live in.

What they did not keep in mind, however, is that their life insurance will only be enough to settle the existing mortgage bond registered over the property. Unfortunately, they also have a lot of other debt and the reality is that should Anne not be able to pay the cash shortfall into the estate, the house would have to be sold to settle the estate’s debt.

Should David and Vera not pass away at the same time and the surviving spouse inherits the deceased spouse’s estate, the survivor will be faced with the same problem as Anne if they cannot pay the cash shortfall in the estate.

When you see an attorney for estate planning, it is important to disclose all information about your assets, liabilities and finances. Costs like the executor’s fee, possible estate duty, master fees and other expenses like your funeral expenses should also be kept in mind. Additionally, ensure that provision is made to meet your dependents’ daily needs.

The following is a broad guideline of the *capital that will be required:

Your debt +
Your funeral expenses +
Your monthly expenses for two years +
Provision for possible estate duty, executors fees, transfer fees, income tax return, capital gains tax on second property
Cash needed in estate

*Capital in your estate can consist of physical cash in a bank account or investment, insurance policies, pension fund disbursements or estate assets that can be sold.

It is therefore advisable to take the following with you for consideration during your consultation:

LIST OF INFORMATION NEEDED
ASSETS :
Immovable Property
Motor Vehicles (paid up)
Furniture
Jewellery, Coin Collection, Valuable paintings with valuations
Details of Bank Accounts
Details of Cash Investments
Details of Funeral Policies
Details of Life Insurance Policies
Details of Retirement Annuities / Pension Fund
Details of endowment policies
Details of Shares of Business Interests
LIABILITIES :
Details of Bonds over Immovable Property
Details of Debt on Motor Vehicles
Details of Loan Accounts and Credit Cards
Details of Personal Loans and Study Debt
Details of maintenance to divorced spouse / minor children
Details of all other debt and responsibilities ex clothing accounts

It’s never easy to lose a loved one, therefore you need to ensure that the administration of your estate is as care free as possible for your family.

From 11th to 15th September, it is the annual National Wills Week, where participating attorneys set up a free basic will for clients. Contact MHI today for an appointment.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)