Marriage Contract or Prenaptual Agreement

23 August 2024

Until recently, property relations between spouses (the same applies to cohabiting partners and partners in same-sex unions) were regulated by the Marriage and Family Relations Act (ZZZDR), which strictly regulated this area without allowing contractual changes to legal provisions. However, the Family Code (DZ), which came into effect in 2019, introduced significant changes, allowing spouses or partners to arrange their property relations at their own discretion.

A contract regulating property relations, also known as a marriage contract (or prenuptial agreement abroad), is an agreement through which spouses determine a special property regime different from the legally prescribed one. This means that if spouses do not agree otherwise, the arrangement set out by the Family Code will apply. If (future) spouses or partners enter into this agreement, they can regulate their property relations for the duration of the marriage and also in the event of divorce, but not in the event of death.

What it means if a marriage contract is not concluded

The Family Code divides a couple's property into common and separate property. Separate property includes what a spouse acquired before marriage or during the marriage based on non-compensatory income (such as gifts, inheritance, awards). This property remains the sole property of that spouse and is not divided in the event of divorce. On the other hand, common property includes all property rights acquired through work or compensatory means during the marriage or cohabitation. This property belongs to both spouses and is divided upon divorce, with the presumption that the spouses' shares are equal unless one spouse proves a different contribution ratio.

If spouses do not choose to conclude a marriage contract, the legal regime under the Family Code will apply, which stipulates that everything the spouses or partners acquire through work or compensatory means (such as salaries, property sales, etc.) during the cohabitation period forms their joint property. In the event of divorce or the end of a cohabitation, the couple can mutually agree on how to divide this property; if an agreement cannot be reached, the property will be divided by the court at the request of one of the spouses.

Arranging property relations with a marriage contract

A marriage contract can be concluded either before the marriage or during its duration, and the same applies to cohabiting partners and partners in same-sex unions (regardless of whether the union is formally concluded or not). If the spouses decide to enter into such a contract, the contractual regime for their property will apply from the moment the contract is concluded, although they can agree otherwise. If the contract is signed before marriage, it will take effect on the day of the marriage.

Before signing the contract, it is important for the spouses to disclose their property status to each other, as the contract could otherwise be subject to challenge. It is advisable to have the contract prepared by a lawyer. If a spouse is not honest about their property status, the other spouse has the option to challenge the contract within one year of discovering the reason for the challenge, but no later than three years after the contract was signed.

Once the marriage contract is prepared, it must be registered in the Register of Contracts Regulating Property Relations, maintained by the Notary Chamber of Slovenia.

Reasons for concluding a marriage contract

At first glance, signing a prenuptial agreement may seem somewhat unromantic, as it requires (future) spouses to discuss the possibility of divorce even before the marriage. However, signing such a contract brings many advantages. It allows spouses or partners to freely manage and dispose of their property. Moreover, the contract enables a person with significant assets to protect and retain them even in the event of divorce. One of the main benefits is that in the event of divorce, this aspect is already settled in advance, meaning that the spouses do not have to wait for a court decision on property division, thus avoiding lengthy procedures, high attorney fees, and court costs. Divorce or separation, therefore, becomes simpler and faster, and more favorable for the parties involved, as they will not be left in uncertainty regarding their property situation.

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