Separation of property and buying a flat

The decision on separation of property can be made when entering into marriage or later. It covers assets, property acquired before it was signed and property acquired while it is in force. Today we want to address a specific topic in this area: how separation of property works when buying a flat. Find out more!

Separation of property: basic information

Separation of property can be established by an agreement, which is drawn up exclusively in the form of a notarial deed (akt notarialny). Property belonging to one of the spouses before the agreement is concluded is referred to as that spouse's personal property. To conclude a prenuptial agreement (intercyza), a marriage certificate, full legal capacity of both parties and their agreement on the decision being made are required. A prenuptial agreement entitles each spouse to manage their own property freely and to increase it. There is no obligation to inform one's spouse about one's financial situation. In the situation described there is no joint property. Spouses may jointly acquire rights on the basis of co-ownership. The agreement on separation of property can be terminated or amended. Let us also remember that an agreement on separation of property does not work retroactively. It is, however, possible to sign an agreement on separation of property with equalisation of accrued gains.

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Separation of property and buying a flat: additional information

Contrary to appearances, separation of property raises considerable doubts for many people. You ask us various questions, for example:

• Can you take out a mortgage with separation of property?
• Can we buy a flat together if we have separation of property?
• What belongs to the spouses' joint property?

Today we will try to answer them in order to dispel all our clients' doubts.

The result of separation of property is that each spouse manages their own financial account and carries out all their own undertakings. Each of them can therefore acquire a property separately or apply for a mortgage. When it comes to buying a flat or house, you can also opt for co-ownership in shares. Sometimes a situation arises in which the spouses individually do not have sufficient creditworthiness, whereas if the property were joint, creditworthiness would not be a problem. We can then take one of two decisions. One option is a return to joint marital property. The other is to submit a declaration to the bank stating that the property is being acquired as co-ownership. You can then determine the proportions as you see fit. The spouses then become co-borrowers. Each spouse will be named separately in the property sale and purchase agreement.

Inheritance matters can also raise doubts under separation of property. If no division was agreed earlier, inherited property becomes part of the property of the spouse who inherits. An inheritance also does not become joint property.

Would you like more information about property market transactions? We invite you to contact the staff of the agency REMAX Gold in Katowice.