Since the amendment of the law on January 1, 2018, Dutch matrimonial property law has changed dramatically. Where in the past every marriage was automatically entered into in community of property, now a limited community of property applies. This adjustment has major consequences for the division of assets and debts during and after the marriage. In this article we discuss the most important aspects of this change in law and what it means for married people.
What does the new matrimonial property law entail?
Under the new rules of limited community of property, not all assets and debts automatically remain jointly held. The most important points are:
Pre-marital assets and debts remain private
Assets and debts that one of the partners had before the marriage remain personal property. This means, for example, that a house purchased before the marriage remains private property after a divorce, unless other agreements have been made.Inheritances and donations are private
Inheritances and donations received during the marriage are not included in the community of property, unless the donor or testator has explicitly indicated that this should be the case.Jointly accrued assets are divided
All assets acquired during the marriage, such as savings and jointly purchased goods, fall within the community of property and are divided in the event of a divorce.
Why has the law changed?
The main reason for the change was to create a fair distribution of assets and debts. In the old system, where everything automatically fell into community of property, debts of one partner could be passed on entirely to the other. The new rules ensure that premarital debts and assets remain outside the community.
Benefits of the new system
Protection of personal assets
Premarital property remains private, which is especially beneficial in the event of a divorce.Inheritances and donations remain protected
Under the old system, inheritances or donations could be part of the community of property. In the new system these remain private, unless otherwise agreed.
Disadvantages and points of interest
Although the revision offers advantages, there are also some complications:
Administrative obligations
Spouses must properly administer their personal assets and debts. In the event of a divorce, it must be proven which assets were acquired before the marriage. Poor administration can lead to loss of private property.Debts during the marriage
Debts incurred during the marriage can still affect the joint assets. Creditors can focus on community property.
Deviation from the standard regime: prenuptial agreement
Partners can choose to draw upprenuptial agreementif they want to deviate from the limited community of property regime. This can be especially useful if one of the partners has their own business and wants to protect it in the event of a divorce. Prenuptial agreements provide flexibility, but must be recorded in a notarial deed.
Conclusion
The introduction of the limited community of property in 2018 has major consequences for the division of assets within a marriage. It offers more protection for personal property, but requires careful administration. It is wise to think in advance about the legal and financial consequences of the marriage. If the standard arrangement does not suit your situation, it is advisable to consider a prenuptial agreement.
Do you have questions or would you like advice about your specific situation? Please feel free to contact one of the family law lawyers atArslanAdvocaten. We are ready to help you.