What is a marriage? Under Hungarian law, marriage is an emotional and economic union between a man and a woman based on a voluntary decision. As a result of this economic union, a community of property is created between the spouses during the marriage.
In the context of the community of property, a distinction shall be drawn between two types of property: the separate property of the spouses and the matrimonial common property, which is the undivided and equal property of the spouses.
- Separate property includes, among other things, assets that are owned by the spouses upon the creation of the matrimonial community of property (e.g. real estate or company shares) or assets inherited by, and gifted to, the spouses, and benefits free of charge provided to the spouses while the matrimonial community of property applies.
- The matrimonial common property of the spouses, which includes assets acquired jointly or separately by the spouses while the community of property applies, shall belong to the matrimonial common property (including, for example, the earnings from the separate property that, during the marital community of life, remain following the deduction of the management and maintenance costs and burdens), as well as the burdens of the shared assets, and as a general rule, debts arising from obligations undertaken by either spouse during the community of property. Nevertheless, there is also a legal presumption that assets owned by the spouses during the community of property belong to the common property.
In order to ensure that the properties of the spouses remain separate after marriage, the spouses can conclude a matrimonial property contract in person. A matrimonial property contract shall be valid if drawn up as a public deed or a private deed countersigned by an attorney-at-law.
The conclusion of a matrimonial property contract is not only the prerogative of spouses with Hungarian nationality. Spouses of different nationalities can also enter into a matrimonial property contract if the conditions laid down by law are met. However, to prepare a matrimonial property contract that meets all the expectations of the spouses, and is valid and effective against third parties, it is advisable to seek the help of a legal expert.
