If community property is cancelled or ends (most commonly as a result of divorce or because one of the spouses dies), or if the existing scope is narrowed, the joint rights and obligations are settled.
An agreement between spouses on how to divide their community property must be drawn up in writing if it is made while they are still married or if the property to be settled requires a written ownership transfer contract (e.g. real estate). If an agreement need not be drawn up in writing, but one of the spouses requests this, the other spouse provides confirmation of the settlement arrangements.
Arrangements on the settlement of property must not affect the rights of third parties (e.g. creditors or co-owners). Arrangements on the settlement of debts are effective only between the spouses.
A settlement agreement takes effect as of the date on which community property is narrowed, cancelled or ended, irrespective of when the agreement was actually made. A settlement agreement is valid even if it only covers certain joint economic rights.
If the spouses failed to reach agreement on settlement arrangements, each of them may apply for a judicial decision.
If assets that previously belonged to community property are not settled within 3 years of the date on which community property is narrowed, cancelled or ended by agreement, and no application for settlement by a judicial decision has been submitted, it is accepted that the spouses or former spouses have agreed to divide their community property as follows:
- tangible movable assets are the property of the (former) spouse who uses them exclusively as the owner for their own needs or for the needs of their family or family household;
- other tangible movable assets and immovable assets are in their joint ownership (as a tenancy in common) and they hold equal shares;
- other economic rights, receivables and debts belong to both (former) spouses jointly and equally.