The universal sharing of assets is a patrimonial arrangement in Brazilian law that governs the financial relationships between married partners.
It includes almost all the items acquired before and during marriage, making it a popular option for couples looking to combine their assets.
This article will outline the key characteristics, legal consequences, and important aspects of this system, with a specific emphasis on how attorneys can advise and represent their clients effectively.
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What does Universal Communion of Goods mean?
In the system of universal sharing of property, all spouses’ assets are combined into one pool.
Both the items obtained before and after the marriage are considered joint assets of the couple.
This regime’s primary characteristic is complete sharing, which includes not only assets but also debts incurred for the family’s benefit.
The program is regulated by the Civil Code, specifically in Articles 1.667 to 1.671, and must be established through an antenuptial agreement.
This requirement arises when there is no clear expression, resulting in the partial community property regime being applied by default.
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What items are included in the Universal Communion of Goods?
The items being brought into global connection comprise:
- Items obtained before or during marriage, regardless of the person who obtained them.
- Donations and inheritances received prior to marriage, unless specified differently in a will.
- Income generated from the private property owned by both partners.
Which items are not included in the Universal Communion of Goods?
Exceptions are outlined in Article 1.668 of the Civil Code despite the scope of the regime.
Goods that are excluded from participation in communion are:
- Donated or inherited goods with a non-transferability clause.
- Personally-owned items like clothing and tools for work.
- Each spouse’s work achievements.
- Pensions, earnings, or payments received as recompense.
These exceptions are intended to protect the uniqueness of partners in certain circumstances, even within a broad system.
Refer to section 1.668 of the Civil Code.
Excluded from communion are those specified in Article 1.668 of the Civil Code.
Goods donated or inherited with the condition of inalienability and their substitutes.
The ownership of trust property and the entitlement of the trust heir are documented before fulfilling the suspensive condition.
Debts incurred before marriage are not the responsibility of the spouse, unless they were for jointly agreed expenses or benefitted the household finances.
IV – the prenuptial gifts given by one spouse to the other with a non-transferability clause;
Goods mentioned in Articles 1.659 to 1.661 are addressed in section V.
What are the pros and cons of the Universal Communion of Goods?
Benefits:
- All assets are viewed as one collective inheritance, making it easier to manage together.
- Both partners have the right to an equal share of the property in case of separation or death, ensuring mutual financial security.
Drawbacks:
- Financial risk arises when debts accumulated by one spouse can have substantial effects on the shared assets of a couple.
- Spouses lose independence over personal assets, leading to potential conflicts in some cases.
- Divorces can become more complex when it comes to dividing assets, particularly in situations involving extensive collections or challenging asset valuation.
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How to divide property during divorce under the Universal Communion Regime?
All property obtained before and during marriage is viewed as shared between spouses in the system of universal communion, with some legal exclusions.
In case of divorce, assets should be split evenly between both partners, regardless of ownership or registration.
Learn how to carry out the distribution of assets within the system of universal sharing of goods.
Identification of Goods that are Shared and Removed
- Common Goods: These encompass all assets acquired prior to and during the marriage.
- Excluded: They are not part of the sharing of goods that are considered incommunicable, such as inheritances, donations with clauses of incommunicability, and personal items, as per the law.
Evaluation of heritage
Conduct a precise evaluation of all items to guarantee equitable sharing. Collaborate with a specialist as needed, particularly for valuable assets like real estate and business assets.
Debts incurred while married
Obligations obtained for the family’s benefit should be divided between spouses, unless stated otherwise in a prenuptial agreement or in special circumstances.
Benefit Sharing Formalization
The split should be formalized through an amicable agreement, ideally sanctioned by the court.
In the event of a lack of agreement, the matter will be settled through legal proceedings, where evidence and arguments will be presented to support any conflicts.
Documentation Required
Organize and present property certificates, contracts, records, and assessment vouchers. Explain to your client the significance of transparent documentation to prevent potential conflicts.
This methodical process helps guarantee that the division is carried out fairly and effectively, upholding the rights of both parties and avoiding unnecessary disputes.
What occurs to the possessions when someone dies under the Universal Community of Goods system?
The surviving spouse is entitled to half of the common property when one spouse dies under the universal community property regime because it was already considered their property within the regime.
Half of it will be distributed among the heirs according to the hereditary order specified in Article 1.829 of the Civil Code.
This article gives importance to:
- Descendants (children and, if they are not present, grandchildren);
- Ascendants refer to parents or fathers when there are no descendants.
- If there are no children or parents, collateral relatives inherit.
Practical advice for attorneys handling the Universal Benefit Communion system.
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Antenupcial Pact Orientation
It is important to educate clients on the significance of creating a thorough prenuptial agreement with specific clauses that safeguard the interests of both partners.
This can help avoid future disagreements over inheritance and clearly establish which assets will not be shared, such as inheritances or donations with non-transferability clauses.
Providing Preventative Consultation
Meetings are held to advise spouses on the financial and legal implications of the universal community property regime, examining the unique assets of each individual.
Show how this system can impact debt, inheritance, or the end of a marriage.
Estate planning and inheritance succession
Assist your clients in arranging products in an organized way, with a systematic approach to planning.
This includes creating lists of assets, wills, and paperwork outlining possessions and liabilities to prevent issues in divorce or the death of one partner.
Conflict resolution and the process of mediating conflicts
In cases of disagreement, it is advisable to prioritize mediation to reach an amicable resolution, which can save time and money while maintaining positive relationships between the parties.
Be ready to engage in transparent discussions and offer equitable and impartial resolutions.
Analysis of debts and responsibilities in depth
Evaluate the financial responsibilities accumulated during the marriage thoroughly. Make sure to take into account debts that were for the family’s benefit when dividing them, to prevent unfairness or burdening one party more than the other.
Education regarding rights and responsibilities
Inform your customers about their entitlements and responsibilities within the universal ownership system, which involves the principle that any property acquired or registered by individuals will be distributed equally.
This understanding lessens uncertainties and potential conflicts that may arise later.
Legal monitoring throughout all phases
Offer assistance throughout all phases of marriage and divorce, covering matters related to estate planning, asset assessment, and distribution.
Continuous monitoring aids in averting issues and effectively resolving conflicts.
These methods enable the attorney to proactively and strategically safeguard clients’ interests while minimizing the chances of property disputes.
The significance of lawyers in preventing disputes in the Universal Communion of Goods.
The universal community of goods involves spouses fully sharing all property and certain debts acquired before and during marriage.
While this system provides benefits like easy management of assets and mutual financial security, it also presents difficulties, particularly concerning financial risks and the reduction of personal financial independence.
Lawyers working with clients who choose this system must be mindful of legal aspects and financial consequences, advising on prenuptial agreements, asset division, and inheritance.
Proper legal counsel can help avoid conflicts and safeguard the rights of spouses in various circumstances, including marriage and its potential end.
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