Un international divorce in Spain It refers to those separation processes in which there is some foreign element: the spouses have different nationalities, have lived in different countries or own assets outside of Spain.
In these cases, in addition to the emotional issues, important legal questions arise: What law applies to the distribution of assets?
How are properties located abroad divided?
What happens if the other country does not recognize the Spanish economic regime?
Below, we explain in a clear and informative way how the distribution of joint property (especially under community property regime) is regulated in Spain in international marriages, and what practical problems can arise when dividing assets shared between several countries.
What is an international divorce and when is it processed in Spain?
Un divorce with international elements presents additional challenges, such as managing assets across multiple countries.
It is usually possible get divorced before Spanish courts when there is a significant link with Spain: for example, if both spouses habitually reside in Spain, if it was their last common residence (and one still lives here) or if one of them is a Spanish citizen.
Under these circumstances, the Spanish courts may assume the competition to dissolve the marriage and also to distribute the marital property.
This means that a Spanish judge, when issuing the divorce decree, may take charge of the dissolution and liquidation of the matrimonial property regime, even if the assets are in different countries.
However, if there are insufficient ties to Spain, the divorce may have to be carried out in another country.
It is important to distinguish between divorce jurisdiction (the country whose courts are hearing the case) and the law applicable to the matrimonial property regime (the regulations that govern how assets are distributed).
The fact that Spain is the country where the divorce is processed does not always mean that Spanish law dictates the rules for the division of assets.
In international couples, it will be necessary to determine first What law governs the economic regime of marriage? before proceeding to divide the assets.
What law applies to the division of property in an international marriage?
The law that determines how the couple's assets are distributed (whether community property regime, separation of property or other) depends on the circumstances of the marriage.
Currently, the European Union has a unified framework for determining the law applicable to marital property regimes.
Since January 2019, a European regulation allows spouses choose the applicable law to their economic regime (for example, the law of one of their nationalities, or that of the country where they reside) provided that they formalize this choice in writing.
If the couple did not choose any law In marriage settlements, then a default rule applies: it will normally be the law of the country of their first common habitual residence after getting married; if they did not have common residence, the law of the common nationality (if they had it); and if not, the law of the country with which they had closer ties at the time of the wedding.
Examples: If a mixed-race couple married in 2020 and started their life in Austria, their property regime is likely governed by Austrian law (in Austria, the default regime is separate property).
However, if after the wedding they established their home in Spain without agreeing to anything, Spanish law will govern the distribution of its assets, applying the joint property regime by default.
On the other hand, marriages celebrated before 2019 are governed by the rules of private international law of the Spanish Civil Code, which essentially followed similar criteria (common nationality, common first residence, place of celebration, etc., according to the former article 9.2 of the CC).
The key is to understand what it is the law applicable to the matrimonial property regime, because that law will be the one that determines which assets are common and how to divide them.
If Spanish law is applicable, then all assets acquired during the marriage will be treated according to the community property regime (unless they have agreed to separate property or another valid regime).
If, on the other hand, the law of another country applies, the rules of that country must be followed (for example, there are countries where by default each spouse retains their separate property).
In any case, The applicable law will cover all property of the marriage regardless of the country where it is located.
That is to say, once the law governing the distribution is determined, it extends to the entire estate, although there are properties in several countries.
The community property regime: how it works in an international divorce
In Spain, community property regime This means that, except for private property (prior to the marriage or received through inheritance/donation), all property and income obtained by either spouse during the marriage belongs to both of them at 50%.
It is the supplementary matrimonial property regime in most of the country (if the couple did not agree to separate property).
When an international couple is subject to the Spanish community property regime, The dissolution of your marriage entails liquidating the community property, dividing the assets accumulated during their life together in half.
Important: The fact that the assets are located abroad does not prevent them from being considered joint property..
If Spanish law is applicable, a property in another country, a bank account abroad or shares in a foreign company are part of the joint property just as if they were in Spanish territory.
For example, let's imagine a Spanish-French couple under community property who bought a house in France and another in Spain with community property money; upon divorce in Spain, both houses are included in the division of property in the divorce.
All common goods, wherever they may be, must be inventoried and valued. to make a fair distribution.
Now, How is an asset located in another country distributed in practice?
This is where international legal considerations come into play.
Even if a Spanish judge rules that a certain asset is included in the division and allocates, for example, half of its value to each spouse, implementing that decision on the ground may require additional procedures in the country where the asset is located. Let's look at this in more detail.
Assets located in other countries: problems and solutions in their division
Split assets abroad after a divorce in Spain usually the most complex a international divorce.
The main challenge is that Each country has its own property and family laws, which may affect how a specific asset is divided.
In a purely domestic divorce, the judgment is sufficient to distribute the assets; but in an international setting, The Spanish judgment may need recognition abroad to be effective.
For example, let's suppose that within the community property there is an apartment in a country where the concept of community property does not exist (many countries with Anglo-Saxon tradition have a community property regime). Separation of Property default).
In the event of a divorce, the property registry in that country will continue to consider the person listed on the title (perhaps just one of the spouses) as the owner of the property.
In order for the other party to get its share, The Spanish sentence will have to be translated and approved. and probably initiate local legal proceedings (sometimes called exequatur) that makes the foreign resolution recognizable.
Only then will the country in question give legal effect to the Spanish decision, allowing, for example, a change in ownership of the property or forcing its sale if necessary.
Another practical problem is the coordination of laws and courts: A good may be subject to regulations that conflict with Spanish regulations.
Therefore, it is common for lawyers to have to collaborate with colleagues from other countries to ensure that the distribution is executed correctly.
Also exist international agreement, as certain Hague Conventions, which facilitate the recognition and enforcement of civil judgments abroad, which helps in the international validity of property distribution orders.
Below we summarize some common challenges and how to address them in multinational asset division:
Assets in countries with different regimes
If a country does not recognize community property, the concept will have to be translated into its legal forms (for example, considering the judgment as an enabling title to transfer half of the value to the non-owning spouse).
Can imply deeds of transfer, notarizations or additional trials in that country.
Concealment or location of assets
In contentious divorces, sometimes one spouse may try to hide money or property abroad.
It is crucial to investigate and declare all assets during the liquidation phase; failure to do so may have legal consequences.
Today, international cooperation and bank traces make it more difficult to hide assets, but it requires specialized advice.
Tax implications
Each country taxes the transfer or distribution of assets differently.
An international divorce may generate tax obligations in more than one jurisdiction (for example, taxes on the transfer of property in the country where it is located, and taxes in Spain if there is a change of ownership).
It is advisable to plan for avoid double taxation or take advantage of possible exemptions.
Differences in valuation and liquidity
Converting assets located abroad into monetary value can be complex (currency fluctuations, different real estate markets).
Sometimes, instead of physically dividing each asset, one spouse is compensated with other assets or money of equal value.
For example, one could keep the house abroad and the other the property in Spain, adjusting accounts so that both receive equivalent values.
Additional deadlines and costs
Processing recognition of judgments or international transfers can lengthen the divorce process.
It is important to arm yourself with patience and have a well-drawn legal plan to minimize delays.
There will also be additional expenses (certified translations, foreign lawyers' fees, court fees in other countries) that should be anticipated.
In summary, Distributing assets in several countries after a divorce in Spain requires a global vision of the case.
It's not just about doing numbers, it's about fit different legal systems so that the final result—each part with what corresponds to it—is truly effective in practice.
Below, we'll see why it's essential to rely on professionals familiar with this field.
Liquidation of joint property: basic steps in an international context
Once the applicable law has been clarified and all assets have been located, the procedure for liquidation of assets In Spain, follow these general steps:
Inventory of assets and debts
A detailed list is made of all joint assets (real estate, bank accounts, vehicles, investments, etc.) and liabilities (mortgages, loans) acquired during the marriage.
Here are included assets abroad, which must be provided with supporting documentation (property titles, bank statements, etc.).
The private assets of each spouse that are not included in the partition are also identified.
Valuation
Each joint property is assigned an economic value.
For properties in other countries, local appraisals or currency conversion to euros may be required.
This phase seeks to determine the total assets of the community property.
Distribution proposals
If mutually agreed upon, the spouses can propose how to divide the assets (for example, allocating each property to one spouse or the other and compensating for differences in cash).
If there is no agreement, the judge will decide the allocation of each asset.
Awarding and titles
Once the distribution has been decided, each spouse is awarded certain assets.
In the case of assets held abroad, additional documentation may be required in that country: for example, signing a deed of sale for a house before a local notary, or completing banking procedures to divide funds in a foreign account.
Final execution
It consists of making the distribution effective.
In Spain, a court-approved judgment or agreement is sufficient to register changes of ownership in property registries or transfer bank funds.
In other countries, as we saw, recognition of the judgment may be necessary or an enforcement procedure under local law.
A specialized lawyer will handle these procedures, coordinating with professionals in the country where the property is located.
Every international divorce is unique, but these steps serve as a general guide. The key is anticipate international obstacles at each stage.
For example, if we know that a certain country requires a translated firm resolution to recognize it, the sworn translation will be managed and the apostille or legalization corresponding in advance.
If an asset is indivisible and no one wants to sell, it may be necessary to negotiate a compensation agreement.
Meticulous planning makes the difference so that the settlement doesn't stagnate.
The help of a firm specializing in international family law
Given the complexity of a divorce with assets in several countries, have a law firm specializing in international family law it is practically essentialThese professionals offer several crucial advantages:
Knowledge of international regulations
A specialized lawyer will be able to quickly identify what law governs the economic regime of the couple and how to apply it.
Likewise, you will be up to date with the applicable European regulations and international treaties that facilitate the process (for example, the Regulation (EU) 2016/1103 on matrimonial property regimes).
Experience in multi-jurisdictional coordination
An international divorce often requires coordinating legal actions in two or more countries.
A good office will have networks of collaboration with foreign lawyers, or even an international presence, to handle the procedures in each location in a synchronized manner.
Execution of judgments and guarantees
Specialists know how to make a Spanish sentence be recognized and enforceable in another country, either through exequatur or invoking existing agreements.
This ensures that the distribution of assets decided in Spain actually takes effect abroad (for example, by registering half of a property in the name of the corresponding spouse).
Comprehensive advice (legal and tax)
An expert team not only distributes assets, but also advises on international tax implications, possible prenuptial agreements to avoid future conflicts, and creative solutions to atypical problems.
Its objective is to protect your rights and interests in all jurisdictions involved, as quickly and effectively as possible.
Close treatment and clarity
Finally, a good professional will know how to explain in simple language each step, options and risks, something fundamental when clients They are not legal experts.
This brings peace of mind to an already stressful process.
Conclusion on International Divorce in Spain: What Happens to Assets in Various Countries?
In conclusion, international divorce with assets distributed across several countries poses special, but not insurmountable, challenges.
Spain has a clear legal framework for addressing these cases, ensuring that the distribution of joint property is carried out in accordance with applicable law and equitably for both spouses.
The key is to understand the laws that govern the marriage, include all assets (domestic and foreign) in the settlement, and rely on experts who know how to navigate the various legal systems involved.
If you and your partner find yourselves in this situation, educate yourself, seek specialized advice, and take every step with the confidence that you're protecting your assets and rights in each relevant country.
A successful international divorce is possible with the right guidance, making it “mine, yours, and ours” is well resolved even though the borders in between add complexity to the path.
RRYP Global, lawyers of international family law.
