Settlement of property after the dissolution of joint marital property during the marriage

Good day,

According to § 149(1) of the Civil Code: “If the joint marital property (BSM) is terminated, the settlement shall be carried out according to the principles stated in § 150.”

Property can be settled in essentially three ways. The first and preferred method is by mutual agreement between the spouses. If the spouses cannot agree, they can request that the court settle the BSM for them. If within 3 years from the termination of the BSM there is neither an agreement nor a court petition, the statutory (automatic) settlement takes place. According to this method: “In the case of movable property, it is presumed that the spouses have settled according to the state in which each of them uses the movable items from the joint property exclusively as the owner for their own needs and those of their family and household. Other movable property and real estate are considered to be in co-ownership, and the shares of both co-owners are presumed to be equal. The same applies appropriately to other property rights that are jointly held by the spouses” (§ 149(4) of the Civil Code).

From the moment the BSM is terminated, each spouse acquires property and rights into their own exclusive personal ownership (or co-ownership, where applicable).

In the event that the joint ownership of spouses (BSM) ends—whether due to the dissolution of the marriage or a court decision—the settlement of the joint ownership is carried out according to the Civil Code.

According to § 149 paragraph 4 of the Civil Code: “If within three years from the termination of the joint ownership of spouses (in the case of court termination of BSM, from the finality of the court decision) the settlement has not been made by agreement, or if the joint ownership of spouses has not been settled by a court decision within three years from its termination upon a proposal, it shall apply, in terms of movable property, that the spouses are considered to have settled according to the state in which each of them exclusively uses the items from the joint ownership for their own needs, family, and household. Regarding other movable property and immovable property, it shall apply that they are in co-ownership and that the shares of both co-owners are equal. The same applies accordingly to other property rights common to the spouses.

The same legal presumption applies if after the settlement of the joint ownership of spouses, additional property appears that was not included in the settlement.”