A marriage is not just an emotional bond, but also involves legal and financial matters. Particularly, the question of joint assets and a possible separation of property should be clarified in advance. A separation of property can help to clearly regulate asset relationships in the event of a separation – even with real estate.
An overview of matrimonial property regimes
Matrimonial and family law distinguishes between three forms of matrimonial property regime: the statutory matrimonial property regime (community of accrued gains), community of property and separation of property. The latter two must be agreed in a marriage contract in order to take effect. Separation of property, in particular, can create clarity by ruling out the equalisation of assets in the event of a divorce.
How does the separation of property work?
Under Section 1414 of the German Civil Code (BGB), spouses may opt out of the community of accrued gains by entering into a marriage contract, thereby establishing a regime of separate property. Under this regime, the assets of both partners remain strictly separate – regardless of whether they were acquired before or during the marriage. Each partner is the sole owner of their own assets.
Advantages of the separation of property
Separation of property makes the divorce process considerably easier, as there is no need for a division of assets. However, jointly owned assets used for everyday purposes, such as a shared house, furniture or the family car, are still divided. Property acquired during the marriage must be divided fairly in the event of a separation.
Property and a prenuptial agreement
Ideally, the prenuptial agreement should set out how jointly acquired property is to be dealt with. This also allows for provisions to be made regarding who will be responsible for any mortgage repayments. A prenuptial agreement can also be drawn up after the marriage has taken place, thus offering flexibility.
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Legal protection through advice
An experienced professional estate agent can not only help you determine the value of your property, but also assist you in finding the best solution for its sale or division. This helps to avoid disputes and financial losses.
Not found what you were looking for?
- Section 1414 of the German Civil Code (BGB) – Separation of property
- Wikipedia: Community of property
- Wikipedia: Marriage
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.
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