How to Divide Marital Property After Divorce?

Divorce is a challenging time, full of emotions and difficulties. One of the most important aspects to resolve is the division of marital property. If not handled properly, it can lead to prolonged conflicts and complications. In this article, we’ll discuss – from the perspective of a legal advisor – how to effectively divide assets after divorce to avoid disputes and secure your financial future.

What Is Marital Property?

Marital property includes all assets and items acquired by the spouses during the marriage.

What Is Included in the Marital Property?

• Salaries and income from gainful employment of each spouse

• Income generated from joint or individual assets of either spouse

• Funds accumulated in open or occupational pension schemes of each spouse

• Contributions recorded on sub-accounts under Article 40a of the Social Insurance System Act

• Assets accumulated in PEPP accounts and sub-accounts, as regulated by the EU Regulation 2019/1238 and the 2023 Polish Act on Pan-European Personal Pension Product (PEPP)

What Is Personal Property?

Not everything owned by spouses is considered joint property – some assets remain exclusively owned by one spouse.

What Is Included in Personal Property?

• Assets acquired before the statutory community began

• Assets obtained through inheritance, bequest or gift (unless stated otherwise by the benefactor or testator)

• Property rights resulting from joint ownership governed by separate laws

• Items intended solely for personal use of one spouse

• Non-transferable rights exclusive to one person

• Compensation for bodily injury or moral damage (excluding pensions due to incapacity to work or increased needs)

• Claims for wages or business income of one spouse

• Awards for personal achievements

• Copyrights, related rights, industrial property rights, and other creator’s rights

• Items acquired in exchange for components of personal property (unless otherwise stated by law)

Is It Worth Signing a Marital Property Agreement (prenuptial agreement)?

Spouses may sign a marital property agreement, commonly known as a prenuptial agreement. This allows them to change the default rules of property ownership in marriage, including establishing separation of property, or expanding or limiting the joint property regime. This agreement can be concluded before or during the marriage, allowing flexible asset management and reducing the risk of future conflicts in case of divorce.

How to Divide Property After Divorce?

The division of property can be done in two ways: by mutual agreement or through court proceedings.

Division by Mutual Agreement

The best solution is to reach an agreement and draft a property division contract. This avoids costly and time-consuming court proceedings. If the property includes real estate, the contract must be notarized to be legally valid.

Court-Ordered Division

If the spouses cannot reach an agreement, the matter goes to court. The court generally applies the principle of equal shares but may consider each spouse’s contribution to the joint estate. A spouse who contributed more may request a larger share.

How to Protect Your Interests During Property Division?

Dividing property after divorce requires preparation. Here are the key steps to safeguard your interests:

• Gather Documentation: Collect all documents such as notarial deeds, contracts, and bank transfers.

• Asset Valuation: Hire a property appraiser or expert to assess the value of the assets.

• Consider Marital Property Agreement: Establishing property separation in advance may simplify the division process.

• Mediation: A family mediator can help both parties reach a compromise and reduce costs.

• Legal Advice: Consult an experienced legal advisor who can develop a negotiation strategy or represent you in court.

Protecting your financial interests requires diligence and strategy – use every available tool to secure your rights.

Mediation as an Alternative

Mediation is an increasingly popular method of resolving property division disputes. It’s faster, more flexible, and less stressful than court. The parties retain control over the final outcome, and it’s also more cost-effective.

This approach is particularly helpful when divorce involves property division and child custody.

Practical Example

Let’s assume that after divorce, the couple is dividing assets including real estate and savings. The house is worth PLN 800,000, and savings amount to PLN 200,000. The spouses agree that one will keep the house, while the other receives the savings and an additional payment of PLN 300,000. This agreement is formalized in a notarized deed, avoiding court proceedings and expediting resolution.

Summary

Dividing assets after divorce requires not only emotional resilience but also legal preparation. To protect your interests effectively, plan each step and, if needed, consult a legal advisor.

If you have questions about property division or need legal assistance, contact our Law Firm. We’ll help you navigate the process and secure your financial future.

Frequently Asked Questions (FAQ)

Can property be divided before divorce?

As a rule, division of marital property cannot take place during marriage. However, spouses can reach an agreement before initiating divorce proceedings. The court may divide assets in the divorce judgment if it does not delay the process.

How long does the property division take?

It depends on the complexity of the case. If both spouses agree, it may take a few weeks. In disputed cases, court proceedings may take months or even years.

Does the court always divide property equally?

No. Although equal shares are the rule, the court may consider the extent of each spouse’s contribution, including childcare and running the household, and award unequal shares.