Georgia
Couples in Georgia
Couples
1 - Which law applies?
1.1. Which law is applicable to a couple´s property? Which criteria/rules are used to determine the applicable law? Which international conventions have to be respected with regard to certain countries?
In the absence of a choice of law, the property relations of spouses shall be subject to the law of the country: (a) to which both spouses individually belong (are nationals of) or belonged at the time of marriage; (b) in which both spouses individually have or at the last moment of the marriage had a habitual residence; (c) to which spouses are jointly most closely related.
[Georgian Law “On Private International Law”, article 45 (1) (2) https://matsne.gov.ge/en/document/view/93712]
Also the rules derived from the Minsk Convention from 22.01.1993 among CIS Member States and Georgia as well as the bilateral international agreement between Republic of Azerbaijan and Georgia from 08.03.1996 must be taken into account.
1.2. Do the spouses have the option of choosing the applicable law? If so, by which principles is this choice governed (e.g. the laws to be chosen, formal requirements, retro-activity)?
Yes. The law may be chosen if it indicates the law of a country: (a) to which either of the spouses belongs; (b) in which either of the spouses has habitual residence; (c) in which the immovable property is situated.
To regulate property relations, persons with international protection may also choose the law of the country of their new joint residence.
The choice of the law must be recorded in the form of a notarial act (authentic act).
[Georgian Law “On Private International Law”, article 45 (2) (3) (4) https://matsne.gov.ge/en/document/view/93712]
2 - Is there a statutory matrimonial property regime and if so, what does it provide?
2.1. Please describe the general principles: Which goods are part of community property? Which goods are part of the separate estates of the spouses?
Unless otherwise prescribed in the marriage contract, any property acquired by the spouses during their marriage shall be treated as a community property. The matrimonial right to such property shall arise even if one of the spouses ran the household, took care of the children or did not have an independent income for any other valid reason.
[Civil Code of Georgia, article 1158,
https://matsne.gov.ge/en/document/view/31702]
The following shall be the separate property of each spouse: a) property that each of them owned before the marriage; b) property inherited or received as a gift during the marriage.
c) Articles of personal use, except for valuables, shall also be deemed to be a separate property of the spouse who uses these articles, even if they are acquired during the marriage with the joint funds of the spouses.
It is possible for a separate property of a spouse to become matrimonial property: the property of each spouse may be deemed to be the matrimonial property if it is discovered that the property has significantly increased in value as a result of the expenses incurred during the marriage (redesigning, completion of construction, reconstruction, etc.). This rule shall not apply if the marriage contract provides otherwise.
[Civil Code of Georgia, articles 1158, 1161, 1162, 1163]
2.2. Are there legal presumptions concerning the attribution of property?
Articles of personal use, except for valuables shall be deemed to be a separate property of the spouse who uses these articles, even if they are acquired during the marriage with the joint funds of the spouses.
[Civil Code of Georgia, article 1162]
There is also a presumption in favor of third parties acting in good faith according to which a real estate registered at the public register in the name of either of spouses shall be deemed as a separate estate of that spouse.
No transaction made by one of the spouses in connection with the administration of the matrimonial property may be declared void upon request of the other spouse on the ground that:
a) he/she had no knowledge of the transaction;
b) he/she disagreed with the transaction.
As a co-owner, a spouse may claim the benefit obtained from the administration of the property.
[Civil Code of Georgia, article 1160 (2) (3)]
2.3. Should the spouses establish an inventory of assets? If so, when and how?
This is not mandatory.
2.4. Who is in charge of the administration of the property? Who is entitled to dispose of the property? May one spouse dispose of/administer the property alone or is the consent of the other spouse necessary (e.g. in cases of disposal of the spouses’ home)? What effect does the missing consent have on the validity of a legal transaction and can it be pleaded against a third party?
The matrimonial property shall be administered by mutual agreement of the spouses, regardless of which spouse administers the property. [Civil Code of Georgia, article 1160 (1)]
However, no transaction made by one of the spouses in connection with the administration of the matrimonial property may be declared void upon request of the other spouse on the ground that:
a) he/she had no knowledge of the transaction;
b) he/she disagreed with the transaction.
[Civil Code of Georgia, article 1160 (2)]
According to the Notarial Procedures Act approved under the decree #71 of the Minister of Justice of Georgia from 31 March, 2010 (article 49), the notary, when drafting an authentic act on a real estate transfer, has no right to ask for the consent of any person but the registered owner of the real estate.
2.5. Are any legal transactions made by one spouse also binding on the other?
No.
2.6. Who is liable for debts incurred during the marriage? Which property may be used by creditors to satisfy their claims?
The payment of the debt of one of the spouses may be recovered from his or her property and/or from his or her share in the matrimonial property which he or she would have received if the property had been divided.
However, the payment of the debts of one of the spouses may be recovered from the matrimonial property if the court finds that the benefit received from the debts has been used in the common interest of the whole family.
Also, if compensation is to be paid for damages caused by a wrongful act of one of the spouses, then such compensation may be recovered from matrimonial property only if the verdict finds that the property was acquired with the benefit obtained as a result of the wrongful act.
[Civil Code of Georgia, article 1170]
Joint debts of spouses shall be divided between them pro rata to the shares to which each of them is entitled.
[Civil Code of Georgia, article 1169]
3 - How can the spouses arrange their property regime?
3.1. Which provisions can be modified by a contract and which cannot? Which matrimonial property regimes may be chosen?
Spouses may enter into a marriage contract that defines their property rights and duties during the marriage as well as during the termination of the marriage.[Civil Code of Georgia, article 1172 (1)]
A marriage contract may be made for property already available as well as for property to be acquired in the future. Under a marriage contract, the spouses may change the rules laid down by law for matrimonial property.
The spouses may combine all their assets so as to add the property acquired during the marriage (community property) to them, or may refuse such combination in whole or in part and determine the shared or separate ownership of the property by each spouse. The spouses may determine in the marriage contract the conditions for their income participation, the rules for bearing family expenses by each of them, and the property to be transferred to each spouse in the event of termination of the marriage.
A marriage contract cannot change the duty of reciprocal maintenance of the spouses, parental rights and duties towards children, child support obligations and the right to file an action in court in the event of a dispute. Also, the marriage contract cannot include any conditions that put one of the spouses in hardship. [Civil Code of Georgia, article 1179]
3.2. What are the formal requirements and who should I contact?
A marriage contract shall be made in written form and certified by a notary in the form of an authentic act. You should contact a notary.
[Civil Code of Georgia, article 1174]
3.3. When may the contract be concluded and when does it come into effect?
A marriage contract may be concluded at any time before or after the registration of a marriage. A marriage contract entered into before the registration of the marriage shall take effect upon the registration of the marriage.
[Civil Code of Georgia, article 1173]
3.4. May an existing contract be modified by the spouses? If so, subject to what conditions?
A marriage contract may be modified or terminated at any time by mutual agreement of the spouses.
4 - Can or must the matrimonial property regime be registered?
4.1. Do one or more registers of marriage contracts exist in your country? Where?
No separate register of marriage contracts exists in Georgia. However, the matrimonial regime relating to real estate can be registered with the National Agency of Public Register. The information about the authentication of the marriage contract by a Georgian notary is also entered at the General Register of Notarial Deeds which is administered by the Notary Chamber of Georgia.
4.2. Which documents are registered? Which information is registered?
The notarial deeds on marriage contracts authenticated by the Georgian notaries are registered at the General Register of Notarial Deeds administered by the Notary Chamber of Georgia.
4.3. How and by whom can the information in the register be accessed?
The information from the General Register of Notarial Deeds may be issued to the party of the contract only or his/her legal successors. Information from the public register is available for all interested persons.
4.4. What are the legal effects of registration (validity, opposability)?
The matrimonial property regime governing the real estate shall only be effective for third parties if it is registered in the Public Register (National Agency of Public Register).
5 - What are the consequences of divorce/separation?
5.1. How is the property (rights in rem) divided?
Matrimonial property may be divided upon the request of either spouse, both during the marriage and after it is terminated. Matrimonial property shall be divided by mutual agreement of the spouses, or, if no such agreement is reached, by a court. The court shall determine which thing belongs to which spouse. Things required for professional activities (musical instruments, medical equipment, a book collection, etc.) shall be transferred to the spouse who needs them for his or her professional activities even if they were acquired during the marriage with the joint funds of the spouses.
As a general rule, spouses shall have equal shares in the matrimonial property unless agreed between them otherwise.
[Civil Code of Georgia, articles 1164, 1165, 1168 (1)]
5.2. Who is liable for existing debts after the divorce/separation?
Joint debts of spouses shall be divided between them pro rata to the shares to which each of them is entitled.
5.3. Does one spouse have a claim to an equalisation payment (balancing payment)?
5.3.1. In case of a property regime of community (or partnership) of acquests:
- Does the claim have to be satisfied by means of a payment or in kind?
- How is the claim assessed?
- What is the amount of the equalisation payment (balancing payment)?
- When is the claim prescribed?
If matrimonial property is divided in such a way that one of the spouses receives the things the value of which exceeds the share to which the spouse is entitled, the other spouse shall be given corresponding compensation in monetary or other form.
A court may also deviate from the rule of equal shares, taking into account the interests of minor children or the weighty interests of one of the spouses; in particular, the share of one of the spouses may be increased if the minor children reside with him or her, or if he or she is a disabled person, or if the other spouse has spent the matrimonial property at the expense of the family interests. Based on the above grounds, the court may award each spouse the property that has been acquired by each of them after the marriage was actually terminated or during the time when they lived apart.
[Civil Code of Georgia, articles 1166, 1168 (2) (3)]
5.3.2. In other cases (not community or partnership of acquests). Which ones?
Other cases may be determined by the marriage contract.
6 - What are the consequences of death?
After the death of one of the spouses, the surviving spouse may claim an ownership certificate for her/his share in the matrimonial property (if the common property regime existed) which was registered as a deceased spouse’s property. To receive this certificate, the surviving spouse must address a notary. The right of inheritance does not apply to the surviving spouse’s share in the common property regime.
According to the Georgian Civil Code the surviving spouse is deemed a first degree heir of the decedent. In the event of intestacy, the surviving spouse inherits together with the deceased spouse’s other first degree heirs (the decedent’s children, a child of the decedent born after his/her death, the decedent’s parents (adoptive parents)) equally.
In the case of testamentary succession, regardless of the content of a will, the surviving spouse of a testator shall be entitled to a reserved share that shall be one half of the share to which he/she would have been entitled in case of inheritance on intestacy.