The community property (SJM) is the shared property acquired during the marriage. However, there are situations where narrowing it down can help protect assets from risks or simplify property relations within the family. When and why is narrowing appropriate, what practical steps are needed, and what should you know?
The community property (SJM) is created automatically when you get married and includes most of the property you acquire during the marriage. Therefore, movable and immovable property, income and other assets are included in the community property, but not gifts, inheritances or personal property.
However, circumstances may arise during the marriage that may lead to a situation in which it may be advantageous to reduce the community property.
Narrowing the community property allows you to exclude specific assets that would otherwise be shared and then continue the separate property regime. This can protect certain assets from business risks or simplify division in the event of divorce.
By narrowing the SJM, you can gain greater certainty and control over the management of your assets in situations that could threaten your family’s financial stability.
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Reducing the matrimonial property (SJM) gives you the opportunity to adapt the property relations to your specific needs. This can happen especially in situations where one spouse starts a business, has large debts or both spouses are concerned about financial risks. In order not to jeopardise the assets of the whole family, you can agree to reduce the SJM, which protects the non-business partner or the accumulated assets. Similarly, you may decide to take such a step, for example, if you are planning to buy a property and want it to remain in the sole ownership of one of you.
If you are not sure what options the legal system offers for reducing your SJM, it is advisable to consult a professional. A solicitor can provide you with basic legal advice on the most appropriate course of action. For the actual reduction of the matrimonial property, you can contact a notary or even the court. The court route can be more complicated, but in some cases it is the only way to protect family assets from excessive risk.
Judicial reduction of the community property occurs when compelling reasons are met, and the court must be convinced of their existence.
Will the apartment that your husband bought before you got married be part of the community property? Or a loan that your husband took out and didn’t tell you about? And how to settle the community property? That’s what we look at in our next article.
The reduction of the matrimonial property regime (SJM) usually takes place in the form of a matrimonial property regime agreement, which requires a notarial deed . The notary will help you formulate the agreement, which will specify exactly which specific assets or funds will be removed from the community property and become the sole property of one spouse.
The reduction of the community property can apply to existing assets as well as to assets you are planning to acquire. For example, if you are planning to buy a property and want only one of you to own it, this can be stipulated in the contract. This procedure can help in situations where one spouse is running a business or managing certain financial obligations that could jeopardise family assets.
The process of narrowing down the SJM gives you control over how your assets will be managed and protected. Notarisation ensures that the agreement is legally binding and that its terms are respected not only between you but also towards third parties such as creditors. The cost of such a deed is usually in the thousands of crowns. However, in this case, it is definitely worth putting the whole thing in the hands of a notary and not preparing according to models from the Internet, because it is a big deal.
SJM can also be dissolved in court at the request of one of the spouses, provided that there is a compelling reason for such a decision. This compelling reason is always the fact that:
The fact that the spouse has started a business or has become an unlimitedly liable partner in a legal person may also be found to be a serious reason.
Reduced matrimonial property (SJM) brings practical advantages, especially in situations where one spouse is running a business or has risky liabilities. By narrowing it, you can protect the family assets so that in the event of debts or business failures of one spouse, the assets of both spouses are not at risk. This gives you more control over your financial obligations and assets.
Adjusting the scope of the community of property (CoP) is not just about protecting assets – sometimes it can be beneficial to extend the CoP. This means that property that would otherwise belong to only one of you becomes jointly owned. This can happen, for example, if one spouse inherits real estate or receives a valuable gift that he or she wants to include in the SJM. Extending the SJM can then bring benefits in situations where both spouses want to share the responsibility for the management and use of such assets.
When extending SJM, it is advisable to consider the impact on the potential liabilities and financial responsibility of both spouses. You can then adapt the property relations to your family situation and future plans.
The agreement on the reduction or extension of the community of property should include precise information on which assets will continue to be held jointly and which will be the exclusive property of one spouse. This can prevent disputes and confusion in the event of, for example, divorce or financial complications. Do not forget to regulate how to deal with assets that you have yet to acquire – for example, if you are planning to buy a property or make an investment.
Make it clear in advance what your main objective is: protecting family assets, simplifying the management of finances or adapting property ownership to future plans. When your rights and responsibilities are clearly defined, you gain more control over your property relationships and the confidence that your assets will be managed according to your wishes.
A practical example
Our regular clients, Mr Jakub and Mrs Hanka, contacted Affordable Lawyer. They have been married for ten years and are raising two children together. Jakub is a successful entrepreneur whom we helped set up a construction company, while Hanka works as a primary school teacher. However, Jakub’s business has expanded in recent years, which comes with greater risks – he invests in new projects and finances some of them with loans.
Both spouses were concerned that any debts or financial problems in the company could jeopardise their joint assets. Any business failures by Mr Jakub would have a negative impact on the family and on the assets he and Hanka had accumulated during their marriage.
Therefore, the couple wanted advice on how to ensure that certain items, such as their family home and savings, would remain Hanka’s sole property, while Jakub could put only personal expenses and necessary business-related items into the SJM. We advised them to narrow the matrimonial property and discussed its possible wording. At the same time, we mediated the conclusion of the agreement at a notary. In this way, we helped them to protect the family assets while ensuring that Jakub could continue his business with minimal risks to the family budget.
Tip: Read how to deal with gifts of property between spouses, where the community of property is the main influence.
The reduction of the community of property (CoP) offers the possibility of adapting the property relations to the specific needs of the spouses, for example in the case of business activities of one of them or to protect the family property from financial risks. The process of reducing the community of property is usually carried out contractually before a notary, whereby it is possible to determine exactly which assets will be the exclusive property of one of the spouses. In some cases, it is also possible to apply to the court for the reduction of the community property if there are compelling reasons. This step can provide greater financial security and protect family assets from business risks or liabilities of one spouse.
We will walk you through the whole process step-by-step from filing to court approval. Will will also ensure the best possible settlement for you, your children and your property. We proceed quickly, discretely and with experience. You may also pay after services are provided.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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