Division of Marital Property

Divorce is a challenging phase in anyone’s life, and one of the most important issues to resolve is the division of marital property.
A jointly acquired apartment or house, shared financial savings, a car, debts, crypto-assets, or even a family business – all these can become subjects of dispute. Often, one party attempts to divide the property amicably, while the other rushes to hide assets, transfer them to third parties, or, conversely, claims a larger share than they are entitled to.
In such cases, it is difficult to defend one’s rights without proper legal preparation. Therefore, it is important to involve family law attorneys from the law firm “Dominion” to explain in accessible terms what legal mechanisms exist for dividing property, how to protect your share, what property is not subject to division between spouses, how the court process unfolds, and whether it is possible to avoid lengthy legal battles or not participate in this emotionally charged process at all. Clients are also particularly interested in how the division of property is handled when children are involved. From a practical perspective, property division often includes issues that are difficult to resolve independently.

How Is Marital Property Divided?

The division of marital property may take place either out of court or through litigation. Amicable settlement via a property division agreement allows the spouses to independently determine who receives what and to avoid court costs, thus saving time and money. More details follow.

Out-of-Court Settlement: Amicable Agreement

Many clients believe that divorce and property division occur simultaneously.
However, this assumption is incorrect. Article 69 of the Family Code of Ukraine states that a husband and wife have the right to divide property that is jointly owned regardless of the dissolution of the marriage. That is, the division of marital property is possible even without divorce, in cases where the spouses do not intend to separate but wish to resolve all financial matters immediately. If the spouses want to avoid conflicts and legal expenses and have a shared understanding of the assets and who should receive them, the best option is to enter into a marital property division agreement.

Agreement Format:

• Written form
• Notarial certification (regardless of the subject matter)
• Specifies who receives what, and outlines compensation for property (if applicable)

Advantages of the Agreement:

• Minimizes expenses and time
• Helps avoid emotional and lengthy court proceedings
• Records agreements that cannot be challenged without justified grounds

When entering into an agreement, one must be extremely careful, as any mistakes may become grounds for the agreement to be declared invalid by a court.

Legal Consultation on the Marital Property Division Agreement

If the spouses cannot reach an agreement, the matter is resolved exclusively through litigation by filing a claim for division of marital property. Legal grounds, each spouse’s contribution, and other important circumstances are taken into account.

Court-Ordered Division of Marital Property

In court, the division of marital property may occur either before or after divorce. A claim for division of marital property is submitted to the court either at the defendant’s place of registration or where the disputed real estate is located. The statement of claim must list the property, its value, and the proposed method of division. It is important to comply with procedural law requirements for such documents.

If a claim is filed against you and you disagree with the proposed division or realize that not all property is listed, you must file a counterclaim with your own justification and proposed division method.

The court examines the case, analyzing documents of ownership, financial contributions of each spouse, outstanding debts, and other relevant factors. If there is a dispute regarding property value, an expert evaluation may be ordered.

The court also considers the interests of minor children and circumstances that may justify an unequal division. Although having children does not drastically change the division, their presence may influence the court’s decision. For example, the court may deviate from the principle of equal shares by awarding the residence to the parent with whom the children live.

When dividing marital property, the Supreme Court issues decisions that are binding on lower courts in similar cases. This is another reason to consult with attorneys, as Supreme Court case law frequently changes and may affect your rights.

Book a Consultation with a Family Law Attorney

As a result of the trial, the court may divide the property equally or, taking into account special circumstances, order one party to compensate the other. The division of marital property and determination of ownership shares occur in one process, and if physical division is impossible (e.g., a car), the court may order one spouse to pay monetary compensation to the other.

A court decision on property division is binding and, if not executed voluntarily, may be enforced by a state or private bailiff.

If the spouses reach a mutual understanding on the division of property during the trial, procedural law allows them to conclude a settlement agreement. Such an agreement may be concluded at any stage of the proceedings and will be legally binding.

It is important to remember that property division is not possible at any time; the statute of limitations applies. The general limitation period for filing a claim for division of marital property is three years from the moment the person became aware or could have become aware of the violation of their rights.

One of the Most Common Client Questions to Dominion’s Family Law Attorneys: “How is property divided after the death of one of the spouses?”

The attorneys responded that after the death of one spouse, the division of property considers the surviving spouse’s right to their share of the joint property, along with inheritance rights of other heirs. If the property was jointly owned, it does not form part of the deceased’s estate.

How Can the Court Divide Property?

• Equal 50/50 Division – the standard approach unless there are grounds to depart from equality
• Unequal Division – possible if one spouse: spent marital assets on personal needs, did not contribute to the family budget, supports minor children, or in other exceptional cases.
• Compensation – if physical division is impossible (e.g., a car is awarded to one spouse and the other receives monetary compensation)

What Is Considered Marital Property?

According to the Family Code of Ukraine, all assets acquired during marriage with joint funds are considered marital property. This means it does not matter whose name the property is registered under — if it was acquired during the marriage, it is considered joint property.

Marital property includes:

• Real estate – apartments, houses, land plots
• Vehicles – cars, motorcycles, yachts, etc.
• Financial assets – deposits, salaries, pensions, and other income
• Corporate rights – business shares, company stock
• Movable property – furniture, electronics, antiques
• Cryptocurrency and digital assets.

What Property Is Not Subject to Division Between Spouses?

The law indeed provides that not all property is subject to division and not all is considered marital property.

Not subject to division:

• Property acquired before marriage
• Gifts or inheritances received during marriage
• Property acquired during marriage using personal funds
• Personal belongings (clothing, perfumes, medals, jewelry, etc.)
• Money received as compensation for moral or physical harm, or insurance payouts

For example, in property division proceedings, a gift may impact asset allocation. If one spouse received an apartment as a gift, it is considered their personal property and is not subject to division.

Thus, to protect your interests, it is advisable to prepare in advance, gather evidence, assess the assets, and consult with an experienced family law attorney from Dominion Law Firm. Legal support will help avoid risks, minimize financial losses, and achieve a fair distribution of assets. If you are facing a property division issue, don’t delay — professional legal consultation significantly increases your chances of a successful outcome.

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