As is well-known, conclusion of marriage generates a community of property between the spouses for the period of conjugal community. Accordingly, the things that the spouses have acquired, either jointly or separately, during their conjugal community remain the spouses’ undivided common property except if it belongs to the separate property of any of them.
Nevertheless, the parties to be married can settle the financial relations between each other before marriage in a contract for the period of the marriage. Moreover, a marriage contract may be concluded also prior to or during existence of the marriage and it might apply not only to already existing properties but also to those to be acquired in the future!
In a marriage contract the parties may – in derogation from the requirements stipulated in law – determine themselves which property items belong to their common property and which ones belong to the separate property of one or other of them. A marriage contract will be valid if it is incorporated in a public document or in a private document countersigned by a lawyer. This practice provides a guarantee for the parties to receive appropriate information and assistance of what it is worth including in their agreement.
If a marriage contract is concluded, both parties are aware of what they have brought into their relationship and what would remain for them if they divorce. Therefore, endless and unnecessary quarrels and sharing, as well as long-lasting and costly judicial proceedings could be avoided.
Settlement of community property
The necessity of settlement of community property arises when the parties – despite their marital conjugal community – do not intend to enter into a financial community or to maintain their financial community. The reasons might be various: in particular, the considerable difference that exists or might be expected to exist in the income of the spouses or, for example, inconsistency of the financial thinking of the spouses.
A marriage contract is suitable also for completely precluding – in derogation from legal provisions and despite the marriage – creation of a community of property between the parties and, furthermore, for settling the community of property while the marriage subsists. As a result, from the effective date of the contract, the things acquired by the spouses do not enrich their common property but they belong to their separate property.
Community of property may be settled during existence of the marital conjugal community even if there is no agreement between the spouses: the court may settle the community of property – for an important reason – even at the request of any of the spouses.
If you have any questions relating to financial relations of spouses, you may contact us also via our online consultancy column.
