Division of Assets during a Divorce: Personal & Business
The division of assets following a divorce can be contentious. The marital contract (prenuptial agreement) can provide an outline for how property and other assets will be distributed. The spouses can also consult with their respective lawyers regarding dividing the assets. How assets will be divided can also often be based around the asset’s nature and whether they were acquired before or after the marriage. Generally, under German divorce law, the assets accumulated during the marriage by both partners are those that will be divided.
Such steps can also apply for the debts accrued. Should one spouse be the sole owner of a property or asset, they are liable for any debt. Similarly, where one of the spouses is contractually obliged to finance a deficit in most cases, they will be the ones to repay it.
Property division is determined by who who is the official property owner. Where a spouse has not contributed to the property’s financing, it is not likely to be considered divisible during the divorce. However, the division of the family home is a more complicated process whereby creative solutions may need to be found, such as buying out the other spouse, transferring ownership to children or selling the property.
Entrepreneurs with business assets also need to be aware of the difficulties in the event of German/British divorce cases. If there is no prenuptial agreement in place with clear guidelines concerning these assets, it can cause significant challenges for businesses.