SUMMARY OF THE ARTICLE
1.- Division of joint property: what it is and when it applies.
Any co-owner may request at any time the dissolution of co-ownership of a property. This right is recognised in Article 400 of the Civil Code and does not expire. If the property is indivisible and there is no agreement, a co-owner may ask the court for a public auction sale. It is sufficient for just one of the co-owners to make the request.
2.- Separate property or community property: a crucial distinction.
In a separation of assets regime, the action for division may be accumulated with the divorce proceedings and resolved within the same process, provided that there is not a plurality of assets. Under a community of property regime, however, it is necessary first to liquidate the community property. These are two different procedures, with distinct procedural rules, and they should not be confused.
3.- Consequences of lack of agreement
When the spouses do not agree—whether on selling the property, or on one keeping it and compensating the other financially—the court will order a public auction sale. The proceeds are then distributed among the co-owners according to their respective shares.
When a marriage breaks down, one of the most frequent disputes concerns the shared home. When one party wants to sell and the other refuses, conflict arises. Divorce and sale of the house are two issues that, in practice, usually go hand in hand. This week we examine the action for division of joint property: what it is, when it can be exercised alongside divorce, and the role of the matrimonial property regime.
What is the division of joint property?.
No co-owner is obliged to remain in undivided ownership. When several people jointly own a property (by purchase, inheritance, or any other title), anyone can request at any time that the co-ownership be dissolved. This is established in Article 400 of the Spanish Civil Code. This right is also imprescriptible (it does not expire over time).
When the property is indivisible (as is usually the case with a single-family home) and there is no agreement for one owner to take it by compensating the other, the law provides for sale at public auction with bids from third parties. In short, a co-owner’s refusal does not prevent the other from exercising this right.
Is it possible to combine the action for division of joint property with divorce?.
In principle, yes. The Civil Procedure Act explicitly allows the action for division of joint property to be combined with the divorce process in a single procedure (Art. 437.4.4 LEC). The advantage of combining both processes is significant. In a single proceeding, the judge can resolve the divorce and sale of the house. However, combining both actions (so everything is processed together) depends on the matrimonial property regime of the spouses.
Separate property or community property: a crucial distinction.
Under our legal system, combining actions that allow divorce and sale of the house is only possible when spouses are married under a separate property regime. The reason is simple:
.- Under separation of assets, jointly acquired property belongs to each spouse in their corresponding share, as private property.
.- Under community of property, contrary to common belief, the property does not belong individually to the spouses but forms part of the “marital estate”. Therefore, it cannot be sold without prior liquidation of the community property. Unlike the division of joint property, liquidation of the marital estate can never be combined with divorce proceedings.
What happens when spouses have multiple properties?.
If, despite being married under a separate property regime, the spouses have multiple joint properties, in principle, the division action cannot be combined with divorce. It may also be necessary to pursue a separate special procedure.
Conclusion.
Divorce and sale of the house are issues that, if managed correctly, can be resolved in a single judicial proceeding. At White & Baos Lawyers, we are experts in family law and real estate law. If you find yourself in a deadlock co-ownership situation, or are considering initiating a divorce process, do not hesitate to contact us.
The information provided in this article is not intended to be legal advice but merely conveys information relating to legal issues.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
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