In marriages, the couple has the freedom to select the system of property that best suits their mutual advantage. This selection assumes great importance when it comes to the categorization and management of property, which may either be kept as separate estates for each spouse or changed into joint property subject to collective control. This article provides crucial insights from attorneys at law and lawyers in Riga on how to make a marriage contract, especially one involving real estate, binding against third parties.
Table of Contents
Understanding The Statutory Regime
The common statutory regime, which presumes co-ownership of assets acquired during marriage, dominates among married couples in Latvia. For instance, the property in question is explicitly declared separate if one spouse individually acquired it through his/her own means, work, or specific actions. The legislated provisions apply as rules unless the spouses decide otherwise by entering into a marriage contract.
Flexibility With Article 114 Of Civil Law
Under Article 114 of Civil Law, a marriage contract allows spouses to interfere with the legal assumption of joint ownership. Instead, they might choose total separation of all properties or extend ownership over all properties, including those bought before getting married. Spouses can therefore structure their respective assets according to their operations and individual characteristics because such a provision creates room for flexibility.
Designating Separate Property
The parties can also enter into agreements that allow them to designate certain jointly owned things as separate property without abrogating the statutory marital regime altogether; however, such agreements have no effect unless sufficient legal requirements are met.
Ensuring Enforceability Against Third Parties
If it is intended that a particular marriage contract should bind third parties, this must involve registration in both the spousal relations register maintained by the Commercial Registry and the land register for any immovable property concerned. Dual registration is required under section 115 of Civil Law for enforceability against third persons.
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Steps for Legal Binding
- Drafting the Contract: Make sure that either a complete separation agreement or an agreement on joint ownership of all properties is expressly stated in the contract.
- Notarization: File a notarized application for registration of the contract with all supporting documents enclosed therewith.
- Registering in Public Registers: Submit the marriage contract to the Company Register’s spousal property relations register and, for real estate, to the relevant section of the land register.
Importance Of Proper Registration
According to Article 16 of the Land Register Law, once a marriage contract opting for total separation of property is in force, there should be a note in the land register showing this agreement. The note gives notice to third parties, such as creditors, that such property belongs separately, thus avoiding possible confusion over ownership.
Legal Implications Of Non-Registration
Absence of proper registration may have serious legal consequences, as illustrated by the Supreme Court judgment dated December 7, 2023 (case SKC-275/2023). This means that a creditor had deceived himself into believing that he still had rights on individuals who were not supposed to be joint owners, leading to severe errors.
Conclusion: Ensuring Legal Certainty
For this reason, prospective spouses must be guided through the delicate task of preparing marriage contracts that are binding by law. This process guarantees that such agreements are legally binding between the parties to it as well as enforceable against third parties, thereby giving legal certainty and predictability in the relationship between them on issues of matrimonial property. Lawyers who observe these procedures can help keep their clients safe from harm and maintain the integrity of their material engagements. The correct registration is essential to ensuring respect for what was agreed upon, legally protecting the rights and assets of both partners.
