Property rights and duties of spouses in Ukraine

The main law of Ukraine which settles the property rights and duties of spouses is the Family Code of Ukraine effective as of 1 January, 2004.

Personal private property of spouses

The law stipulates the following personal private property of spouses:

• property acquired by a husband/wife before marriage;
• property acquired by a husband/wife in marriage as gift or heritage;
• property acquired by a husband/wife in marriage with money owned by him or her personally;
• property of personal usage including values purchased with joint money of spouses;
• awards, prizes gained for personal achievements. However court can adjudge a right of the other spouse for a part of this award if he/she favored to it (by housekeeping, upbringing children etc.).
• means, which he/she got as compensation for damage of the personal property;
• insurance money, which he/she got as a result of a required or voluntary personal insurance;
• property purchased during separate living of spouses due to termination of their family relationship;
• part of the property purchases by spouses with their joint money and also with personal money of one of spouses in accordance with the amount of spent personal money.

If a personal property gives fruits or income, the owner of this property owns these fruits and income as well. The regime of use of the personal property is determined by its owner. The owner of this property has to consider interests of children, other members of his/her family, who have a right to use this property.

Joint Ownership of Property

A property acquired by spouses during their marriage is an object of joint ownership irrespective of personal income and occupation of spouses during their marriage (studies, housekeeping, taking care of children, illness etc). So, according to the Ukrainian law all property purchased during marriage is considered to be an object of joint ownership except for property of personal use. Even a property for professional occupation (musical instruments, planning, medical equipment etc.), purchased in marriage for one of the spouses is a joint property.

If a personal property of one spouse was significantly enlarged in value as a result of joint work, finance or for account of another spouse during their marriage, this property can be adjudged in court to be an object of joint ownership.

Rights of spouses

Spouses have equal rights to possess, to use, to dispose of property owned by family if there is no separate agreement between them. The law gives a husband and a wife a right to conclude all types of contracts between them not forbidden by law concerning his/her personal property and also joint property.

Spouses dispose of joint property only by mutual consent. One of spouses has the right to conclude a contract only with consent of the other spouse. If a contract is concluded without agreement of the other spouse, it can be deemed invalid by court after applying for it by the other spouse. A contract, which requires a state notary certification, or a contract concerning valuable property can be concluded by a spouse only if the other spouse gives his/her agreement in written form. This agreement must be certified by the notary. A contract concluded by one spouse in the interests of family produces obligations for the other spouse.

Spouses have the right to come to an agreement about use of joint property. A husband/a wife has the right to conclude a contract of sale and purchase, exchange, gift, pledge only after his/her part of joint property has been determined and apportioned or after the order of use of this property has been determined. A wife/ husband can make her/his will about her/his part of joint property before it has been determined and apportioned.

Divorce does not cancel the right for joint ownership of property purchased during marriage. After divorce the disposal of joint property is executed by joint owners exclusively by mutual agreement in accordance with the Civil Code of Ukraine.

Spouses have the right to divide their joint property irrespective of their divorce. They can divide their property by mutual agreement. An agreement of division of a house, of a flat, of other immovable property or agreement on apportionment of a part of immovable property from the whole property is to be certified by a notary.

If a woman and a man live as a family, but not in registered marriage, a property gained during their living together belongs to them on the right of joint ownership, if there are no other agreements between them in written form. It means that by law of Ukraine people living together have the same rights and duties as spouses in registered marriage.

Thus, there are two ways of regulation of property rights and duties of spouses in Ukraine - by family law and by marriage contract. The family law of Ukraine as written above settles the joint ownership of family property. That means that in case of divorce each of spouses has the right to get a half of all property of spouses. If people wishing to get married or people already married want to regulate their property relations otherwise, they have the right to conclude a marriage contract, which will specify all property matters they wish.

The above is intended to provide a brief guide only. It is essential that appropriate professional advice is obtained. Our company will be glad to assist you in this respect. Please do not hesitate to contact us.