Which assets acquired during marriage are not included in the matrimonial property regime?
Marriage is not only a personal and emotional union between two people but also a legal institution that creates numerous property rights and obligations. One of the most common questions arising in divorce or matrimonial property disputes is which assets remain the separate property of one spouse and which become part of the matrimonial property regime.
Understanding these rules is important both when a marriage is dissolved and when planning the acquisition of assets during marriage.
What Is the Matrimonial Property Regime?
As a general rule, unless the spouses have chosen another matrimonial property regime (such as through a prenuptial agreement or a separation of property regime), the statutory matrimonial property regime applies.
Under Article 21 of the Bulgarian Family Code, property rights acquired during the marriage as a result of the spouses’ joint contribution belong jointly to both spouses, regardless of whose name they were acquired in.
It is important to note that, under Article 21(2) of the Family Code, joint contribution is not limited to financial investment or paid work. The law also recognizes as joint contribution:
- childcare;
- household work;
- any other activities that support family life.
In this way, the law acknowledges that while one spouse may earn a higher income, the other may contribute by caring for the family and maintaining the household.
Furthermore, under Article 21(3) of the Family Code, joint contribution is presumed unless proven otherwise.
Typical examples of matrimonial property include:
- the family home;
- the family car;
- other assets and property rights acquired through the spouses’ joint contribution.
Upon divorce, the matrimonial property regime is terminated and, as a general rule, each spouse is entitled to an equal share.
What Is Separate Property?
Alongside matrimonial property, the law also recognizes the category of separate property.
Pursuant to Article 22 of the Family Code, these are property rights belonging exclusively to one spouse that do not form part of the matrimonial property regime. Such assets are not divided upon divorce.
Which Assets Remain Separate Property?
Property Acquired Before Marriage
All assets and real estate acquired before the civil marriage remain the separate property of the respective spouse.
Inheritance
All real estate, funds, or other property rights inherited during the marriage remain the separate property of the inheriting spouse.
Gifts
Where a gift is made personally to one spouse, the gifted asset also remains that spouse’s separate property.
Items for Personal Use
Movable property acquired during the marriage for ordinary personal use is also considered separate property, including:
- clothing;
- footwear;
- personal accessories.
Professional Tools and Equipment
Assets necessary for the exercise of a profession or trade are likewise considered separate property, such as:
- computers;
- professional equipment;
- specialized tools.
However, pursuant to Article 30 of the Family Code, where such assets are of substantial value and the other spouse contributed to their acquisition, that spouse may claim a corresponding share of their value.
Property Used by a Sole Trader
Property rights acquired by a spouse acting as a sole trader for the purposes of carrying out their business are also regarded as separate property.
However, if the other spouse substantially contributed to the development of the business or to the acquisition of those assets, they may be entitled to claim a share of their value.
Transformation of Separate Property
A particularly important concept is the transformation of separate property.
This occurs when a new asset is acquired during the marriage entirely with funds that already constitute one spouse’s separate property.
For example, if one spouse sells an apartment owned before the marriage and uses the proceeds to purchase another property, the newly acquired property will also remain that spouse’s separate property.
Where the new asset is acquired using both separate and joint funds, a partial transformation occurs. In such cases, separate ownership is recognized only to the extent of the separate funds invested.
Why Is It Important to Determine Whether Property Is Separate?
In divorce or matrimonial property disputes, correctly determining whether an asset forms part of the matrimonial property regime or constitutes separate property is crucial for the division of assets.
In many cases, this requires a detailed examination of:
- how the property was acquired;
- the origin of the funds used;
- whether there was joint contribution by the spouses.
Conclusion
Distinguishing between matrimonial property and separate property is one of the key issues in family law. Although the law establishes clear principles, disputes frequently arise regarding the source of funds, the transformation of property, or the existence of joint contribution.
If you are going through a divorce or a matrimonial property dispute and are unsure whether a particular asset constitutes separate property or forms part of the matrimonial property regime, consulting a family law attorney can help protect your rights and interests.
The team at G&P Law provides legal assistance, court representation, and online legal consultations on family and matrimonial property matters. Contact us — we have offices in Sofia, Plovdiv, and Varna, and we also offer online legal consultations.
Author: Gergana Petrova
Images: Canva