Division of BSM (Community Property of Spouses) without a court hearing

The community property of spouses (BSM) can be settled in several ways, including without a court hearing. As a priority method of settlement, the law states the settlement of the community property of spouses by an agreement on the settlement of the BSM.

Settlement by agreement is an extrajudicial method of settling property relations, which implies that the court will not decide on it at all (neither with ordering a hearing nor without a hearing). Indeed, considerable financial costs are associated with judicial settlement; therefore, if the spouses can agree on their own, we recommend drafting a community property settlement agreement, the content of which will consist of the division of the property that belonged to the community property of spouses.

In the sense of the provision of Section 42 (3) of Act No. 162/1995 Coll. on the Real Estate Register and on the Registration of Ownership and Other Rights to Real Estate (the Cadastral Act), as amended (hereinafter referred to as the “Cadastral Act”): “the signatures of the co-owners on an agreement on the cancellation and settlement of tenancy in common or upon the settlement of the community property of spouses must be certified.”

If the subject of the community property settlement agreement is a real estate property, it will subsequently be necessary to also prepare a petition for registration in the real estate register, which shall be submitted to the relevant cadastre depending on where the real estate property is located. The annexes to the petition for registration will be the community property settlement agreement of the spouses in two copies and a certified final and effective divorce judgment, or potentially a written power of attorney if the petition is submitted by an authorized person.