Property Acquired During Marriage
Everything you need to know
The property that spouses acquire during their marriage in the majority of cases in the Republic of Macedonia is typically registered in the name of either the husband or, as an exception, the wife. This applies to both immovable property (such as houses, apartments, and land) and movable property (e.g., vehicles, shares in a company, etc.).
In the law of the Republic of Macedonia, the issue of ownership of property acquired during marriage and its regulation is described in the Law on Property and Other Real Rights.
Joint and separate property in marriage
During marriage, spouses can acquire property in different ways, and the law recognizes both joint and separate property.
According to Article 67 of the Law in North Macedonia, it is determined that the property acquired by the spouses during their marriage is considered their joint property. This means that any property acquired by the spouses during their marriage is considered joint, except in cases where one of the spouses owned the property before the marriage (meaning it was not acquired during the marriage) or when the property is received through inheritance, legacy, gift, or when it exclusively serves the personal needs of one spouse, provided that it does not have a disproportionately high value compared to the total joint property.
Based on this, in the event of division during marriage or after divorce, only the property considered joint can be divided. Property acquired by one spouse through gift or inheritance is not subject to division, even if the gift or inheritance was acquired during the marriage.
What if only one spouse is registered in the public records (such as the Cadastre Agency or Central Registry)? According to the Law, the ownership rights of spouses regarding real estate that is considered their joint property should be registered in the public records in the names of both spouses as joint owners. However, in a majority of cases in the Republic of North Macedonia, real estate is registered in the name of only one of the spouses.
Nevertheless, the law in North Macedonia specifies that this does not significantly affect ownership rights. If only one spouse is registered as the owner of joint property in the public records (e.g., the Cadastre Agency), it is considered that the registration is made on behalf of both spouses.
Therefore, in situations such as the sale of real estate acquired during marriage, notaries typically require a statement from the other spouse consenting to the sale, even if the property is registered in the name of only one spouse.
Additionally, the law stipulates that if both spouses are recorded in the public records as co-owners of specific portions, it is considered that they have determined those portions as joint property.
How is joint property managed by spouses?
The property acquired during marriage, whether it be immovable or movable property, is occasionally a subject of dispute regarding its management and disposal, and the method by which it should be handled.
For instance, situations may arise where a vehicle acquired during marriage is exclusively used by one spouse, or disagreements between spouses arise over whether a specific piece of real estate should be leased.
Such scenarios are challenging to regulate, but the law attempts to address them by stipulating that spouses jointly and amicably manage and dispose of the shared property.
Furthermore, before its allocation, a spouse cannot independently dispose of their share of the shared property or encumber it with legal obligations while they are alive.
In cases involving the sale of a particular portion of the shared property owned by one spouse, the rules for the primary purchase of co-owners are applied.
While quite uncommon in North Macedonia, the law also allows spouses to reach a written agreement that designates one of them to manage and dispose of the shared property or a portion thereof. The agreement can pertain to all aspects of management and disposal, exclusively regular management, or specific matters. In the absence of a different agreement, management also encompasses disposal within the scope of regular operations.
Either spouse has the right to terminate the shared property management or disposal agreement at any time, except when such termination would clearly harm the other spouse.
Additionally, the law underscores that for actions extending beyond the scope of regular management, including property disposal, the consent of the other spouse, expressed in the form required for the respective legal action, is necessary. Specifically, this provision means that consent would be sought from both spouses if real estate acquired during marriage is to be sold.
How is the division of jointly owned property conducted?
If there is a need to divide shared property due to divorce or other reasons, and upon the request of a spouse, items from the shared property that are essential for their activities will be primarily included in their portion.
Furthermore, from the shared property, items acquired through work during the marriage that exclusively serve for personal use will be separated and given to the respective spouse, in addition to their share.
Additionally, if the value of such property or items significantly exceeds the value of the overall shared property, these items will also be divided, unless the spouse receiving them compensates the other spouse with the corresponding value or, with the other spouse’s consent, offers other items in exchange.
During the division of shared property, if one spouse ends up with a significantly smaller portion, the court may, upon the request of one spouse, decide that this portion should be compensated in monetary terms.
Gifts exchanged between the spouses before or during the marriage are not subject to return.
Can more of the property belong to one of the spouses in a division after divorce or in another case?
As mentioned earlier, in the event of a divorce or under other circumstances, a division of shared property between spouses can occur, transforming such property into separate assets for each spouse, exclusively belonging to them. However, such agreements are often not reached, necessitating court-led property division.
To ascertain the portion and extent that belongs to each spouse, the court should commence by presuming an equal division of the spouses’ shared property. This means that it is presumed that one-half belongs to one spouse, and the other half to the other spouse. In certain situations, a slightly greater contribution may be attributed to one spouse (e.g., if they earn more). Nonetheless, full consideration of the contributions made to the marriage should be taken into account, especially for non-monetary contributions like child-rearing and home maintenance.
It should be noted that if one of the spouses asserts a significantly larger contribution, the court may allocate a larger portion of the shared property to that spouse, provided they can substantiate that their contribution to the shared property is markedly and substantially greater than that of the other spouse.
According to the Law in North Macedonia, if it is determined during the division of shared property that one of the spouses possesses a significantly smaller portion, the court may, at the request of one of the spouses, decide that compensation in monetary form should be provided.
What happens to the obligations, i.e., debts incurred by spouses?
The law also addresses concerns about obligations. The other spouse is not responsible for the obligations incurred by one spouse prior to the marriage, nor for personal obligations acquired after the marriage.
Spouses share joint and several liability for obligations assumed by one spouse to fulfill the current needs of the marital union, as well as for obligations that, according to general regulations, burden both spouses. This means that any debt is borne collectively by both spouses, though not necessarily equally, until it is settled, regardless of the number of spouses implicated.
The spouse who satisfies a joint and several obligation from their separate assets has the right to demand that the other spouse compensate them for the portion of the obligation allocated to them.
Note: The above does not constitute legal advice and in no way can be accepted or understood as an instruction to act in a specific case. Each legal situation has its own characteristics that should be reviewed at separately, and for that reason we recommend that you contact a professional – a lawyer – for legal advice.
Martin Boshkoski
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