Ricardo Galaz

The matrimonial property regime in Chile is the system that governs the property relations of both spouses with each other and with respect to third parties, i.e., how the assets are formed and administered, determining the rights and obligations of each one. In Chile there are three types1 : Separate Property, Joint Property and Participation in theProfit sharing.

Undoubtedly, a very important issue that should be addressed with time and knowledge, so that they can make the right decision according to the reality and needs of each couple. What are the matrimonial regimes in Chile? Review the main aspects of each below.

Separate Assets

Caro Hepp

This matrimonial property regime, which is also known as Total Separation of Property, consists in the fact that the assets of each spouse, as well as their administration, are kept separate before and during the marriage, that is to say, both spouses act with full independence from each other, so that their assets are not mixed .

When to get married with Separation of Property? First, you should know that this regime can be agreed before the celebration of the marriage, in the same act of its celebration or during the marriage. What happens to the assets when a marriage with Separation of Property ends? Everyone keeps their own assets which represents what each person acquired in his or her own name before and during the regime.

However, the law classifies this system according to whether it is a separation of property by legal mandate, court order or agreement between the spouses, or whether it is a total or partial separation of property, if it includes or does not include all the assets.

Pooled Assets

Vimart

In the Joint Property or Marital Partnership The assets of both spouses form a single, common property for both, which is administered by the husband, in the case of different sex couples. This includes both the assets that each had before marriage, as well as what they acquire during the union.

When to agree it? In the case of the conjugal partnership, it can be agreed before the celebration of the marriage or in the same act of its celebration, but if a specific regime is not indicated, it operates by default.

Although the marital partnership is the owner of the assets that enter it - those that are administered by the man - it is possible for the wife to have her own assets, outside the partnership. These assets, which will be administered by her, must be obtained as a result of her work or profession, if she is separated from her husband's employment. This is known as reserved assets.

The rest of the property will be administered by the husband who, however, will need the wife's authorization to carry out certain acts, for example, to constitute a mortgage on a real estate property. But if they wish to change from Joint Property to another regime, during the marriage they can substitute it by the Separation of Property or by the Participation in the Profits. AndLikewise, the wife can sue to move to Separation of Property, if the husband incurs in behaviors such as abandonment of the home, insolvency or not helping the spouse.

What happens to the property when a Marital Partnership is terminated? A community of property is created between the spouses, or between the surviving spouse and the heirs of the other spouse, who may ask for the liquidation of the Marital Partnership.

*A bill that seeks to give women property rights is currently before the legislature.

Participation in the Profit and Loss Account

Aloriz Photographs

Although it is less common, there is a third matrimonial property regime in Chile which is the Participation in Profits. In this regime, the assets are kept separate If the regime is terminated, the spouse who acquired more valuable assets must compensate the spouse who acquired less. The aim is to put the two on an equal footing. .

When to agree it? This regime can be agreed during the celebration of the marriage, in the same act of its celebration or during the marriage.

What happens to the assets when a community property marriage ends? Any earnings that each spouse made during the marriage, such as money, assets or property that were not part of the "marital estate," must be calculated. The spouse who has more earnings must give the other spouse half of the difference between the two. Only the Community Property Regimerequires an inventory of the assets, which is carried out at the beginning of this regime.

Married couples abroad

Perfect Moment

What about the matrimonial property regime of marriages celebrated abroad? persons married abroad are considered in Chile as married with Separation of Property. This, unless they register their marriage in the Registry of the First Section of the Commune of Santiago, and agree to Marital Partnership or Participation in the Profits.

And the final big question is: can the property regime of the marriage be changed? You can, so it is very important that couples take advice from experienced matrimonial property lawyers in order to make the best decision either before getting married or when making changes.

Organizing a marriage is a constant decision making process and, among them, you will have to find out about the different types of matrimonial property regimes and choose one of them. The essential thing is that, whatever the decision is, you make it consciously and considering all the points involved in each property system.

References

1. Property Regime of the Marriage Property Regime of the Marriage