Division of Assets after Divorce in Cyprus
Divorce is a difficult and emotional journey, and one of the most pressing concerns for spouses is the division of assets, commonly referred as property disputes after divorce. The legal system in Cyprus provides precise provisions addressing the distribution of property and assets between spouses following a divorce. The procedure can be complicated, and it is essential to grasp the legal framework in order to safeguard your rights and achieve a fair decision. This article seeks to offer an overview of the rules and processes governing asset split following a divorce in Cyprus.
When it comes to dividing property after a divorce in Cyprus, the Regulating the Property Rights of Spouses Law 232/91 is the essential piece of legislation to refer to. This law stipulates that any movable or immovable property acquired by either spouse during the marriage, or even before the marriage (in certain cases where it was intended for the marriage), is subject to division if the marriage is dissolved, declared invalid, or ends in divorce. It is therefore crucial to understand the provisions of this law in order to ensure a fair and equitable distribution of assets during divorce proceedings.
How the assets are divided between spouses
When dividing property in a divorce, the entitlement of each spouse depends on their contribution to the increase in the property value. This contribution can be direct, such as payment of money, or indirect, such as a spouse who takes care of the children and maintains the household, giving the other spouse the opportunity to work and increase the property value.
For instance, let’s consider a scenario where on the day of the wedding, the wife has an apartment worth €80,000 and the husband has a house worth €200,000. Upon divorce, the wife’s apartment is worth €100,000, and the husband’s house is worth €300,000. In this case, the husband will be entitled to claim a percentage of the increase in the wife’s property value, while the wife will also be entitled to claim a percentage of the increase in the husband’s property value.
The same goes for bank deposits, stocks, bonds, or movable property. Gifts from others cannot be disputed.
It’s worth noting that any property acquired before the marriage but with the prospect of marriage is also taken into account when dividing the property.
The Family Court decides based on the testimony provided by the spouses and issues a decision that orders the parties to pay a specific amount, depending on the decision. It is important to consult a serious and professional lawyer in such a case because the decision of the Court can determine the rest of your life and this decision is final and irrevocable.
Property Disputes after Divorce and the Presumption of 1/3 of the Assets
If a spouse is unable to demonstrate the exact extent of their contribution to an asset, but it is acknowledged that they did contribute, the court typically awards them one-third of the asset’s value.
However, if the other spouse can demonstrate that the contribution was less than one-third, the award may be adjusted accordingly.
In legal proceedings, this concept is known as a “rebuttable presumption” that is established by law. Typically, if a spouse asserts their claim to property rights but fails to demonstrate the exact extent of their contribution to the property’s value, the Court will presume that their contribution is equal to one-third of the property’s increase in value. However, this presumption can be challenged and disproved by the other spouse.
Asset Disclosure Order
An Asset Disclosure Order is a legal tool that allows a spouse to request information about the assets of the other spouse. This information is typically sought in situations where one spouse does not have full knowledge of the other’s assets, such as in a divorce proceeding.
To obtain an Asset Disclosure Order, the requesting spouse must apply to the Court. The Court will then order the other spouse to disclose their assets as they were at the time of separation or at another time as determined by the Court. If the other spouse fails to comply with the Order, they can be held in contempt of Court and may be subject to imprisonment.
An Asset Disclosure Order is a useful tool for ensuring that both spouses are fully informed about the assets involved in a divorce. If you are going through a divorce and have concerns regarding asset distribution, you should speak with a family law expert to see if an Asset Disclosure Order is suitable for your circumstances.
Interim Order of Non-Alienation of Property
This order refers to a legal process that aims to protect the rights of ex-spouses during property disputes.
If one spouse poses a risk of selling or disposing of specific assets before the main case is resolved, the family court may issue a decree prohibiting such actions until the case is fully adjudicated. This decree ensures that the other spouse has a fair chance to receive a proportionate share of the assets based on their contribution to their acquisition.
To issue such an order, the Family Court applies the same criteria as the District Court for any interim remedy sought until the trial of the case. The court must be convinced that maintaining the status quo prevailing at the material time is in the interest of justice, and it will ensure a fair resolution of the case in the final stage of adjudication. This process provides a measure of protection for ex-spouses and safeguards their legal rights.
Contact our Family Attorneys today to ensure your property rights after your divorce and protect your assets.