Division of property
Are you going to get divorced or separated? Or has your husband/wife passed away? Division of property means that you divide up your joint assets. How the division of property is to occur will depend, among other things, on the type of relationship you have had. In this section you will find more information about the process of division of property and the rights and obligations you have.
Division of property – what does the process look like?
Division of property in relation to a house, tenant-owner apartment or tenancy begins with one of the parties requesting a division of property. As long as all involved parties are in agreement, you can perform the division of property yourselves, although a written agreement must be prepared and signed if you own a property together. If the involved parties are unable to reach agreement, or if you simply prefer to receive assistance with the division of property, application for such assistance must be submitted to a district court.
- Estate inventory
Regardless of whether the division of property relates to a divorce, the death of a spouse or a separation between common law partners, the process always begins with the performance of an estate inventory. This means that you list all the assets and liabilities you have at the time of the application for divorce, dissolution of your common law relationship or death of your spouse, or the time at which you submitted your application for division of property. - Calculating your respective shares
The estate inventory is used as the basis for calculating the value of your assets and liabilities. As a general rule, under a division of property, your joint property is divided equally between you. However, if you have been common law partners or have been married for less than five years, you may make an exception from the general rule of equal division of property through a process that is referred to as apportionment. - Apportionment of lots
In simple terms, an apportionment of lots means that you decide how to divide up your assets between you. In other words, you decide who gets what! - Division of Property Agreement The division of property is finalised by signing a Division of Property Agreement. You divide up the property between you in the manner you wish and then work out which of you owes the “net difference” to the other.
Division of property in connection with a divorce
Division of property is something that must be done in connection with a divorce. As long as the two of you are in agreement about how to divide up your assets, there is no need to use a property distribution executor. Instead, you can simply manage the entire process yourselves. Furthermore, you do not need to register your division of property with the Swedish Tax Agency, although you must submit a divorce application to a district court before you commence your division of property. If you are married, all your property is deemed to be marital property and must be divided equally between you, unless you have previously reached agreement to the contrary, for example through a pre-nuptial agreement.
Division of property in connection with a divorce – helpful tips
For more information and helpful tips regarding division of property in connection with a divorce, you can visit the following website www.boupplysningen.se.
Division of property between common law partners
If you have had a common law relationship and wish to perform a division of property, in Sweden this is regulated by the Swedish Cohabitation Act (“sambolagen”), which means that it is only that assets that you have acquired jointly that are to be included in the division of property. Either of you may request a division of property up to one year after the date of dissolution of your common law relationship, although there are no requirements that a division of property must take place in such circumstances.
Division of property in connection with the death of a spouse
If one of the spouses in a marriage passes away, a division of property must take place, in a similar manner to the division of property in connection with a divorce. The heirs and other legatees take the place of the deceased person and are subject to the same rules as would have applied to the deceased spouse.
Division of property during marriage
A division of property may also take place during the course of an ongoing marriage. In this case, both spouses must agree to the division of property and how it is to take place. The reason for wishing to perform a division of property during the course of an ongoing marriage is usually a desire to clarify which specific assets are owned by each spouse. This is particularly common when one of the spouses operates a company/business.
Division of property regarding a tenant-owner apartment or house
If you are going to get divorced, a tenant-owner apartment or house is deemed to constitute marital property under a division of property. If you are in a common law relationship and are going to separate, the home you currently share is only deemed to constitute a joint asset if you acquired it together. In such case, the value of the home is based on the market value of the property and is divided evenly between you.
Notar’s professional and experienced estate agents would be pleased to help you identify the market value of your property via a free valuation. We will review and assess your home, taking into account all relevant aspects such as location, condition and floor plan, to ensure that you receive as fair a valuation as possible. Please don’t hesitate to contact us for more information!