Married couples are particularly at risk, too. Their absolute community of property is liable to pay debts and obligations that were contracted during the marriage for the benefit of the community; those contracted by either spouse without the consent of the other and ante-nuptial debts of one alone and liabilities incurred by either spouse by reason of a crime or tort when the liable spouse has no separate property or is insufficient.
In all cases of liability of the community assets, if the community property is inadequate, the separate properties of the spouses will be solidarity liable. The creditors may sue both or either spouse for the entire amount.
You know you are attractive to lawsuit hounds when you own a house and lot free and clear (or with substantial equity) and you own chattels worth over P1 million. The same is true with persons who act as general partners in high-risk enterprises (such as real estate companies) and those who act as officers and directors of multinational corporations. If your business is leasing equipment (such as industrial machinery and household machines), vehicles, residences, apartments, and other commercial property you stand out in a crowd as a person with a prodigious net worth.
The nature of your business may determine your lawsuit appeal. Businesses involving ultra hazardous activities such as oil exploration, manufacturing of explosives, armaments and pyrotechnics and the manufacturing, marketing and distribution of consumer products such as vehicles, household appliances, medicine, toys, leisure equipment, and others occupy the high end of the list. If your net worth is substantial and you are thinking of marriage or remarriage, you are considered a high risk individual. Paradoxically, people who are insured are objects for target practice by lawyers. Insured owners of businesses and vehicles are viewed as “deep pockets” by litigators. They are more likely to be sued than those who carry little or no liability insurance.
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