Lesson 5 - FL PDF

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LESSON 5 PROPERTY RELATIONS BETWEEN SPOUSES (II): REGIMES OF COMMUNITY OF PROPERTY: 1. REGIMES OF COMMUNITY OF PROPERTY: Main traits: 1. A common estate is created, which is composed all property acquired for consideration throughout the duration of marriage. 2. Characterization of some debts as com...

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LESSON&5&–&PROPERTY&RELATIONS&BETWEEN&SPOUSES&(II):®IMES&OF& COMMUNITY&OF&PROPERTY:& & 1.®IMES&OF&COMMUNITY&OF&PROPERTY:& & Main&traits:&& 1. A$ common$ estate$ is$ created,$ which$ is$ composed$ by$ all& property& acquired& for&& consideration&throughout&the&duration&of&marriage.&$ 2. Characterization$ of$ some$ debts$ as$ community& debts:& Since$ we$ have$ a$ common$ bag,$ regarding$debts,$these$will$become$community$debts.$ 3. We$will$also$have$joint$ or$ concurrent& administration:$ administration$of$both$ spouses$ of$ these$assets.$ 4. We$will$also$have$rules$concerning$the$ liquidation& of$the$community$and$the$distribution& of$assets.$$ Main&models:& • Community& of& acquests:$ France,$ Spain$ (except$ in$ some$ CA:$ Catalonia,$ Valencia),$ Italy,$ Eastern$Europe.$$ o Regarding$ the$ case$ of$ Valencia,$ the$ Constitutional$ Court$ declared$ the$ law$ on$ separation$ regime$ is$ unconstitutional$ in$ Valencia.$ à$ Valencia$ itself$ never$ had$ a$ separation$ of$ property$ regime,$ so$ the$ Court$ considered$ the$ CA$ is$ overusing$ his$ competences,$ since$ CA$ can$ only$ legislate$these$ kind$ of$ topics,$if$ they$had$ regulated$ this$ regime$ historically.$ à$ Solo$ pueden$ regular$ este$ tipo$ de$ materias$ si$ históricamente$han$venido$regulando$este$régimen.$$ o Catalonia:$ Separation$ of$ property$ regime$ as$ a$ consequence$ of$ an$ historic$ process,$ regulated$by$the$CCC,$(art.$149.1.8$CE).$$ • Universal&community& (Netherlands):$the$third$bag$ –common$estate-$governs$ALL$ assets,$ not$only$assets$acquired$for$consideration$during$the$marriage.$$ Rationale& (fundamento):$ Marriage$ is$ conceived$ as$ an$ institution$ founded$ on$ long-lasting$ solidarity.$$ Main&advantages:& • Good$in$terms$of$incentives$for$the$parties.$à$Marriage$as$a$joint$enterprise.$$ • More$ protection$ of$ the$ less$ advantaged$ spouse:$ so$ this$ party$ doesn’t$ have$ to$ prove$ he/she$has$worked$in$the$household$keeping…$ Disadvantages:& • Bad$fitting$of$the$model$in$individualistic$–$divorcists$societies.$ • Difficult$administration$(paralysis$at$certain$points),$since$in$much$field$we$will$need$both$ parties$to$consent$some$transactions.$$ $ 2.&THE&COMMUNITY&OF&ACQUISITIONS&(SOCIEDAD&DE&GANANCIALES)&IN&THE&SPANISH&CIVIL& CODE:&THE&PRINCIPLES:& Sec.&1344&CC:$The$“sociedad$de$gananciales”$makes$any$gains$or$profits$obtained$indistinctly$by$ either$spouse$common$to$the$spouses,$being$allocated$by$halves$upon$its$dissolution.$ • This$article$provides$a$definition$of$community$of$property$by$the$CC.$à$Goods$gained$ are$common,$and$they$will$be$split$50%$when$the$dissolution$of$marriage$arises.$$ Sec.&1396&CC:$after$its$dissolution,$the$community$shall$be$liquidated.$$ Sec.&1404&CC:$after$making$any$deductions$to$the$property…$the$residue$shall$constitute$the$net$ assets$of$the$sociedad$de$gananciales,$which$shall$be$divided$by$halved$between$the$spouses$or$ their$respective$heirs.$$

So$ if$ the$ regime$ finishes$ because$ one$ of$ the$ spouses$ have$ died,$ the$ other$will$ have$ right$ to$ participate$in$the$goods$gained.$ & 2.1&Personal&assets&of&each&spouse&and&common&assets&in&the&sociedad(de(gananciales:& 2.1.1&Personal&assets&(sec.&1346&CC):& 1)$ Preexisting& assets$ (contrary$ as$ what$ happens$ to$ the$ Netherlands$ à$ this$ would$ be$ then$ universal$community).$$ 2)$Assets$acquired$for&no&consideration&during&the®ime$–gift,$donation,$heritance-$(another$ important$difference$ regarding$ universal$ community).$Regardless$I$received$ them$when$I$was$ married$or$not.$$ • Thanks$ to$ the$ private$ autonomy,$ the$ party$ receiving$ the$ good,$ for$ instance,$ by$ inheritance,$ can$ decide$ that$ this$ good$ received$ is$ not$ online$ his,$ but$ also$ from$ the$ wife.$ That$is$to$say,$what$the$inheritor$does$is$to$go$to$the$registry,$and$add$the$name$of$both$ spouses.$This$is$the$way$to$change$a$personal$asset$into$a$common$asset.$$ 3)$ Assets$ acquired$ at$ the$ cost$ of$ or$ as$ a$ replacement& for$ personal$ property:$ If$ you$ buy$ something,$it$will$be$personal,$because$you$bought$it$with$personal$assets.$If$you$want$to$make$ it$a$common$asset,$you$have$to$register$the$asset$in$the$name$of$both.$ 4)$Property$rights$and$assets$Inherent&to&the&person:$$ 5)$ Compensations$ for$ damage& to$ the$ person$ or$ to$ the$ personal$ property:$ for$ instance,$ a$ compensation$earned$for$a$traffic$accident.$$ 6)&Objects&for&personal&or&professional&use:$if$you$are$a$dentist,$the$assets$or$tools$used$in$the$ Clinique$such$as$machines,$these$will$be$personal$assets.$$ • What$happens$If$you$take$out$money$of$the$common$bag$to$pay$something$that$you$will$ exclusively$use$ for$ a$ professional$activity?$Thus,$ this$ good$ will$become$ a$ personal$ asset,$ despite$ you$ have$ the$ duty$ to$ reimburse$ the$ value$ (what$ you$ payed)$ of$ this$ good$ the$ moment$the$regime$of$community$of$property$extinguishes,$due$to$a$divorce,$death...$$in$ order$to$calculate$the$famous$50%.$$ $ 2.1.2&Common&assets&(sec.&1347&CC):&& 1)$ Assets$ obtained$ from$ the$ work$ of$ either$ spouse$ (salary):$ that’s$ why$ this$ regime$ can$ be$ dangerous.$$ • Case-law:$if$we$receive$a$ compensation$for$a$car$accident,$this$is$a$personal$ asset.$ But$if$ we$ receive$ a$ compensation$ for$ being$ faired$ from$ work,$ that$ is$ to$ say,$ a$ compensation$ linked$ to$ work,$ since$ we$ are$ in$ front$ of$ a$ compensation$ dealing$ with$ work,$ this$ compensation$will$be$a$common&asset.$$ 2)$ Fruits,& revenues& or& interest$ generated$ by$ personal$ assets$ and$ by$ common$ assets:$ for$ instance,$ if$ I$ have$ a$ land$ in$ a$ region$ of$ Catalonia,$ as$ an$ heritance,$ and$ this$ land$ has$ cherries$ which$ I$ sell$ every$ month,$ the$ money$ earned$ every$ month$ by$ this$ fruits$ will$ be$ common,$ despite$the$asset$–the$land-$is$mine.$ • If$we$have$a$personal$bank$account,$and$it$gives$interests$every$month,$the$money$in$the$ bank$account$is$personal,$but$the$interests$are$common.$That$is$why$is$so$useful$to$have$3$ bank$ accounts:$ 1$ for$ each$ spouse,$ and$ another$ one$ for$ the$ common$ assets,$ in$ order$ to$ identify$them$easily.$$ 3)$ Assets$ acquired$ for& consideration$ at$ the$ expense& of& common& property:$ if$ we$ buy$ with$ money$of$the$common$bag,$this$good$or$asset$will$be$common.$$ • LOTTERY& AWARDS:$ it$ is$ a$ COMMON$ asset,$ since$ it’s$ a$ good$ acquired$ for$ consideration,$ because$in$any$sense$you$have$paid$for$the$lottery$ticket.$à$Strategy$to$avoid$this$result:$ in$some$CA,$in$MC$the$default$rule$is$community$of$property$regime.$What$parties$can$do$

is$to$make$more$flexible$this$default$rules:$for$instance$by$setting:$“los$premios$obtenidos$ por$lotería$seran$para$el$coyuge$que$haya$comprador$el$tiquet”.$$ 4)& Businesses& and& establishments& founded& during& the& regime& at& the& expense& of& common& property.&& & Important$ presumption$ in$ regimes$ of$ community$ of$ property:$ if$ the$property$ of$ a$ good$ can’t$ be$defined,$because$we$don’t$have$a$way$to$prove$that$spouse$1$or$spouse$2$is$the$owner,$this$ good$becomes$a$common$asset$à$presunción(de(ganancialidad.$ Another$additional$rule:$we$have$a$list$that$the$law$itself$tells$us$when$an$asset$is$personal$or$ common.$Despite,$spouses$can$agree,$when$ they$gain$a$ good,$to$ make$ it$become$a$ common$ asset$ à$ private& autonomy$ à$ spouses$ can$ decide$ in$ which$ bag$ they$ want$ to$ add$ different$ assets,$and$in$case$of$no$agreement,$we$follow$the$following$rules$set$in$art.$1346$&$1347$CC.$$$ $ 2.2&Community&debts:&sec.&1362-1363&CC:& Expenses&which&have&to&be&borne&by&the&community:& • Maintenance&of& the&family&and& household&expenses,$including$maintenance$of$children$ of$only$one$of$the$spouses$if$they$live$in$the$family$home.$ • Acquisition,& holding& and& enjoyment& of& common& assets:$ all$ debts$ that$ have$ to$ do$ with$ acquisitions$with$assets$that$are$common,$are$also$community$debts.$$ • Ordinary&administration$expenses$of$the$personal&assets$of$either$spouse:$since$personal$ assets$give$common$assets,$ their$administration$is$ common.$ Since$ the$ money$ I$ get$ from$ work$goes$to$the$common$bag.$ • Donations$made$by$the$spouses$by$agreement.$$ $ 2.3&Administration&of&the&community&assets:& Principle$of$joint&administration,$including:$ • Alienation$or$encumbrance$for$consideration;$ • Gratuitous$transfers$ Exceptions$to$the$joint$administration:$ 1. Expenses$on$account$of$the$administration$of$the$personal&property:&this$won’t$never$be$ joint$administration,$since$we$are$administrating$something$personal.$ 2. Expenses$ on$ account$ of$ professional& activity:$ being$ the$ spouse$ doing$ the$ professional$ activity$I’m$the$spouse$having$a$better$position$to$administrate$it.$ 3. Administration$and$disposal$of$assets$held$in$the$name&of&or&in&possession&of&one&of&the& spouses.&$ 4. Urgent&expenses& 5. Small&gifts:$no$need$of$acceptance$by$the$other$party$to$administrate$these$small$gifts.$$ $ 2.4&Dissolution,&liquidation&and&partition&of&the&community:& Grounds&of&dissolution:& • Dissolution&by&operation&of&the&law&(1392):$When$the$parties$divorce$or$having$a$nullity$ proceeding,$ the$ regime$ dissolves$ by$ operation$ of$ the$ law.$ Or$ when$ we$ change$ the$ matrimonial$regime.$$ o

The$community$of$joint$assets$shall$end$by$operation$of$law:$$ 1.(When$the$marriage$is$dissolved.$ 2.(When$the$marriage$is$declared$null$and$void.$ 3.(When$the$separation$of$the$spouses$is$judicially$decreed.$ 4.(When$the$spouses$agree$upon$a$different$marriage$property$regime$in$the$manner$provided$in$this$ Code.$

• Dissolution& by& judicial& decree& (1393):$ where$the$ couple$ has$been$ separated$for$ 1$ year.$ We$don’t$have$a$judicial$decision$of$separation$or$divorce,$but$they$can$go$to$judge$and$ ask$ him$ to$ fix$ the$ dissolution$ of$ the$ regime.$ This$ also$ happens$ when$ one$ of$ the$ parties$ becomes$incapable.$$ Atr.&1393$ The$community$of$joint$assets$shall$also$end$by$judicial$decree,$at$the$request$of$one$of$the$spouses,$in$one$ of$the$following$cases:$ 1.(Where$the$other$spouse$has$been$judicially$incapacitated,$or$has$been$declared$a$prodigal,$an$absentee$ or$bankrupt$pursuant$to$civil$or$commercial$law,$or$found$guilty$of$abandoning$his$family.$ For$the$Judge$to$decree$the$dissolution$it$shall$be$sufficient$for$the$spouse$who$requests$it$to$present$the$ corresponding$judicial$resolution.$ 2.(Where$the$other$spouse$has$been$performing$by$himself$acts$of$disposal$or$management$of$assets$which$ involve$fraud,$damage$or$danger$to$the$rights$of$the$other$spouse$in$the$community.$ 3.( To$ have$ been$ separated$ de$ facto$ of$ more$ than$ one$ year$ by$ mutual$ consent$ or$ as$ a$ result$ of$ abandonment.$ 4.( To$ have$ seriously$ and$ repeatedly$ breached$ the$ duty$ of$ informing$ of$ the$ results$ and$ returns$ of$ his$ economic$activities.$ As$ regards$ the$ dissolution$ of$ the$ community$ as$ a$ result$ of$ the$ attachment$ of$ the$ share$ of$ one$ of$ the$ spouses$as$a$result$of$his$own$debts,$the$special$provisions$of$this$Code$shall$apply.$

$ After$the$ dissolution$ is$ declared,$we$ will$ start$ proceedings$ to$ calculate$ this$ 50%.$ Liquidation& operations:$ • Drafting$of$inventory$report$(sec.$1396-1398):$ • Payment$ of$ debts$ and$ reimbursement$ of$ sums$ owed$ to$ either$ spouse$ (sec.$ 1399-1403):$ what$we$said$about$the$case$in$which$we$buy$something$with$common$asset$money,$we$ have$to$give$back$this$common$asset,$(the$price$for$which$we$bought$the$good).$$ Atr.&1399$ Upon$completion$of$the$inventory,$the$debts$of$the$community$shall$be$paid$in$the$first$place,$starting$with$ maintenance$debts$which,$in$any$case,$shall$have$preference.$ In$ respect$ of$ the$ rest,$ if$ the$ property$ subject$ to$ inventory$ should$ not$ be$ sufficient$ to$ pay$ them,$ the$ provisions$relating$to$concurrence$and$order$of$priority$of$credits$shall$apply.$ Atr.&1400$ When$there$should$not$be$sufficient$cash$to$pay$the$debts,$allocations$of$common$property$may$be$offered$ in$ lieu$ of$ payment,$ but,$ if$ any$ participant$ or$ creditor$ should$ request$ it,$ they$ shall$ be$ disposed$ of$ and$ payment$shall$be$made$with$the$proceeds.$ Atr.&1401$ Until$the$debts$of$the$community$have$been$paid$in$full,$the$creditors$shall$keep$their$credits$against$the$ debtor$spouse.$The$non-debtor$spouse$shall$be$liable$with$the$property$adjudicated$to$him,$if$an$inventory$ should$have$been$duly$drafted$in$or$out$of$court.$ If,$as$a$result$thereof,$one$of$the$spouses$should$have$paid$an$amount$exceeding$the$amount$attributable$ to$him,$he$may$recover$it$from$the$other.$ Atr.&1402$ The$ creditors$ of$ the$ community$ of$ joint$ assets$ shall$ have$ upon$ its$ liquidation$ the$ same$ rights$ acknowledged$by$the$Laws$in$respect$of$the$partition$and$liquidation$of$estates.$ Atr.&1403$ After$paying$the$community’s$debts$and$expenses,$any$compensations$and$reimbursement$owed$to$each$ spouse$shall$be$paid,$up$to$the$amount$of$the$property$that$has$been$subject$to$inventory,$performing$any$ applicable$setoffs$when$the$spouse$owes$any$debts$to$the$community.$

& Partition&operations:$preemptive$rights$(sec.$1406)$ Each$spouse$shall$be$entitled$to$request$the$inclusion$as$part$of$his$assets,$on$a$preferential$basis$and$up$to$the$ full$amount$thereof:$ 1.(Property$of$personal$use$not$included$in$number$7$of$article$1,346.$$ 2.(The$economic$undertaking$he$effectively$manages.$$ 3.(The$premises$where$he$has$been$conducting$his$profession.$$ 4.(In$the$event$of$death$of$the$other$spouse,$the$dwelling$which$where$he$has$his$habitual$residence.$...