Weddings today are not commonplace – more and more couples are choosing unmarried cohabitation as a full-fledged alternative to marriage. However, in such relationships, which now include many families with children, legal issues can arise, particularly regarding joint property. What options do the partners have in settling their property if they decide to go their separate ways? And what should they look out for to protect their rights and assets in an informal union?
Unmarried cohabitation between a man and a woman has gradually become more or less tolerated in comparison to the past and is now a widely accepted, even preferred, way of living together. Also, about half of all newborns are born out of wedlock.
There may be a number of reasons why couples choose to live together informally: some prefer independence and freedom, others do not want to spend tens of thousands of crowns on a single wedding day, and some couples think of the back door in advance and ease their way to a possible break-up.
In the Czech Republic, the legal system does not distinguish between the rights and obligations of unmarried partners and spouses in many areas. However, important differences still remain, particularly in relation to property and inheritance. Unmarried partners, often referred to as spouses, do not have nearly the same legal rights as spouses. First of all, without a marriage, there is no community of property and therefore no legal obligation to share property in the same way as in marriage. This can be problematic if the partners jointly acquire property such as real estate or a car.
A spouse’s spouse also has a different status from the husband and wife if one of them dies. The surviving spouse is left with half of the community property and can claim the remaining assets under the first class of inheritance. A spouse has a more complicated situation. They inherit only in the second class of inheritance, provided that they lived in the same household with the deceased spouse for at least 1 year before the death and took care of the household or were existentially dependent on the deceased. However, if the deceased has children, they inherit everything as heirs of the first class. Disputes often arise over jointly acquired property.
Such a situation can be avoided by enshrining the inheritance claim in the will. In order to protect rights and property relations, lawyers recommend that unmarried couples enter into contracts that provide for joint ownership and the sharing of liabilities. Such formal agreements can help prevent legal complications.
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Do you own a piece of land jointly with another person and are you thinking of settling the co-ownership? We will prepare a quick and efficient co-ownership settlement for you, so that it is as advantageous as possible for everyone involved, and especially for you.
As we have already mentioned, spouses are not covered by the legal institution of community of property, which is automatically created by marriage. This means that property acquired during the relationship by the unmarried partners is not automatically considered to be community property within the meaning of the law.
On the other hand, this does not mean that co-ownership between a spouse and a partner cannot occur. For example, they may enter into a purchase contract with the seller and thus acquire property together, they may be joint owners of real estate and many other things. One of the couple may also transfer a joint ownership interest in their property to the other.
If everything is framed by purchase, gift or other contracts, the situation is legally quite clear. A more complicated situation arises, for example, when one of the partners owns a house and the other invests his or her money in renovating it. Such an arrangement is legally uncertain and can lead to disputes. If one of the couple equips the shared household with appliances and the other spends the same amount on shared food, the situation is also only apparently fair. This is until the moment when the division of property should come into question.
Tip: We will help you with the drafting of the application for entry into the Land Registry so that everything is in order the first time and you do not miss important deadlines or lose money.
You may remember the movie The Break-Up, where Jennifer Aniston and Vince Vaughn form a harmonious couple until one of their banal arguments escalates into an insurmountable feud and subsequent break-up. The problem is that the beautiful apartment they bought belongs to both of them and neither of them wants to move out. What follows is a series of insinuations and attempts to humiliate and humiliate the other (former) couple as much as possible in order to force them to give up the flat. We also encounter such situations in our law firm, which is why we recommend that larger property transactions be handled contractually in advance.
Quite generally, each partner retains the assets they have acquired individually after a separation. However, if the partners have acquired property jointly, they should agree to divide or settle it.
From a procedural point of view, the property settlement of a non-marital couple can (and most often does) take place by oral agreement, and in the case of real estate, by written agreement. If no common agreement can be found, for example, the services of a lawyer as a mediator can be used and the agreement thus reached can be sealed in writing.
If this is also not possible and there is an acquisition of co-ownership of certain assets, there is no option but to settle the co-ownership by the court. The court may decide to assign a specific item to one of the partners and at the same time impose an obligation on the other (ex)partner to pay him/her. Another option is to sell the item and divide the money thus obtained.
Tip: What are the disadvantages of co-ownership and how to proceed if you are considering splitting the co-ownership? We have addressed this in our separate article.
Joint debts and financial obligations can also be difficult to resolve when an unmarried couple separates, especially if there are no written agreements.
If both partners take out a joint loan, for example to buy a house or a car, they are jointly and severally liable for it, which means that the creditor can recover the full amount from either of them. If the debts are written in the name of only one of the partners, disputes can arise over who should repay the debts if the money was used for the benefit of both. This situation is common, for example, in the case of loans to renovate a home that is formally owned by one of the partners.
Thus, the settlement of joint debts should necessarily be part of the agreement on the joint division of property.
Children born out of wedlock have full legal equality with children born in wedlock in the Czech Republic. The Czech legal system does not differentiate between the rights and obligations of the parents or the rights of the child, regardless of whether the parents are married. A child born out of wedlock, for example, has the same inheritance rights as a child born in wedlock. He or she may inherit from both the mother and the father if paternity is established. He or she takes the surname of one of the parents by mutual agreement. If the parents do not agree, the surname may be decided by the court.
The parents also have the same parental responsibility towards the child, regardless of whether they have married. They have the same rights and obligations towards the child, which include the right to care, to provide for the child’s upbringing, health and education, as well as the obligation to contribute financially to the child’s needs. In the event of separation, each parent has the right to have access to the child and may request that the child be placed in their care, taking into account the best interests of the child.
As regards maintenance, each parent must contribute according to his or her financial means and, in the event of a dispute, the court may decide on the amount.
Entering into a property settlement agreement can be a very useful tool for unmarried couples to avoid future legal problems. This agreement allows the spouse and partner to clearly define the rules for the acquisition, management and possible distribution of jointly acquired property. This avoids the complications that can arise on separation, when it is often difficult to determine who is entitled to what assets.
The agreement can also cover how the property is to be disposed of in the future, for example when buying a joint property, a car or other valuable assets. The partners can set out the shares of ownership and determine how the settlement will take place if they decide to end the relationship.
In the case of a separation of unmarried partners – a spouse and a partner – the division of property is more complicated than for married couples, as Czech law does not recognise community property for unmarried couples. The partners keep the property they acquired individually and have to agree or settle the jointly acquired property by contract. Without an agreement, the services of a lawyer or mediator can be used, or a court order can be made to settle or sell the property. Asset protection can be provided by a property settlement agreement, which helps prevent disputes over ownership and liabilities if the relationship ends
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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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