How is property divided following a divorce?

Divorce almost always involves property issues. Flat, car, loans, businesses – all of these need to be divided or compensation agreed upon. The law is based on the principle of joint ownership, but every situation has its own nuances.

 

It is necessary to work out exactly what is subject to division and what remains personal property, and how to proceed in order to avoid unnecessary conflicts.

What constitutes the spouses’ joint property?

Joint property includes everything acquired during the marriage, regardless of whose name it is registered in:

• salaries and income;
• flats, houses and land;
• a car and other property;
• a business or share in a company;
• savings and deposits.

It is important to understand that it does not matter who actually earned more. The contribution is deemed to be equal.

What assets are not subject to division?

Not all property is divided between the spouses. Personal property includes:

• property acquired before marriage;
• inheritance or gifts;
• items for personal use;
• compensation for personal injury.

Such property remains the property of one of the spouses.

Is a flat purchased before marriage subject to division?

An apartment purchased before the marriage was registered is not part of the joint property. It is the personal property of one of the spouses. It therefore remains the property of the person who purchased it.

When can the other spouse claim compensation

A right to compensation may arise if:

• joint funds were invested in the flat;
• major renovation work was carried out;
• the value has increased as a result of joint investments.

In such cases, the issue is usually not one of a share but of reimbursement of expenses.

How do you divide a car after a divorce?

There are several main ways

Selling the car and dividing the proceeds

The simplest option is to sell the car and split the proceeds. This reduces conflict and allows the matter to be resolved quickly.

Transferring the car to one spouse with compensation for the other

Another option:

• the car remains with one of the spouses;
• the other receives financial compensation;
• the value is determined by an appraisal.

Is a business divided in a divorce?

 

A business may be subject to division if it was established or acquired during the marriage. This refers to:

• a share in a company;
• corporate rights;
• profits from operations.

Business valuation for the division of assets

To determine a share, a valuation is usually carried out. The following are taken into account:

• the company’s assets;
• debts;
• profitability;
• market value.

How is a loan divided following a divorce?

Loans taken out during the marriage may be recognised as joint debts of the spouses. This applies to:

• mortgages;
• consumer loans;
• loans for family needs.

Loans taken out in the name of one spouse

If the loan is taken out in the name of one person, the court assesses:

• whether the funds were used for the family;
• whether the other spouse benefited;
• whether there is evidence of joint use.

Is it possible to divide property without going to court?

The spouses may reach an agreement themselves. To do this, they draw up an agreement on the division of property. This sets out:

• • who is entitled to what;
  • the amount of compensation;
  • the procedure for transferring the property.

 

Notarisation of agreements

For an agreement to be valid, it must be notarised. This reduces the risk of future disputes.

Is inherited property subject to division?

Personal inherited property is a topic over which many families argue. After all, property received through inheritance is not divided. It remains the personal property of the heir.

An exception is where the property has been improved using joint funds. For example, if during the marriage:

 

• costly renovations were carried out;
• joint funds were invested;
• the value of the property increased.

In such cases, the other spouse may claim compensation.

How to prepare for the division of property following a divorce?

The division of property requires documentation and a clear position. Important:

• gather proof of ownership;
• value the property;
• check any loans;
• identify what is jointly owned.

Svarog’s lawyers help you avoid mistakes and disputes, as well as protect your financial interests.

Questions and Answers

How is property divided after a divorce?

Joint property is divided equally or as agreed by the parties or by a court order.

Is a flat purchased before marriage divided?

No, it is personal property, but compensation may be payable for joint contributions.

How is a car divided following a divorce?

Through sale and division of the proceeds, or transfer in return for compensation.

Is a business divided in a divorce?

Yes, if it was established during the marriage or involves joint investments.

How is a loan divided after a divorce?

The court determines whether it is a joint or personal liability.

Is it possible to divide property without going to court?

Yes, through a contract and notarisation.

Can property received by inheritance be divided?

No, it is personal property unless it has been substantially improved using joint funds.