Ended cohabitation? Find out what should be handled and how to divide property fairly.
Common-law marriage is a status given to a couple who live together, but are not married. However, is it necessary to undergo any procedure to recognize this status? And in that sense, how to separate the union and divide assets, such as a house? This is explained in the article.
A separation process is emotionally demanding. It can become even more challenging when it involves dealing with paperwork, changing address, or handling financial matters. But it is possible to do it with support, in a calmer way.
If you are going through a similar situation, count on the support of Poupança no Minuto, you can receive free and personalized assistance, especially if it concerns a housing loan. First, see what you need to know in this process.
How to dissolve a common-law marriage?
First note that being in a common-law relationship means living together with another partner for over two years, under similar conditions as a married couple: couple living in the same property, sharing a common life.
Common-law marriage must be recognized by the Parish Council where the couple lives, in order to obtain a certifying declaration. In this case, if it's necessary to dissolve the union, and one of the members changes the tax address, is that sufficient to declare the dissolution to the Tax Authority?
The answer is no: in order to dissolve the civil partnership officially, you must proceed in the same way as obtaining the status.
To end a de facto union, whether by separation of the couple, marriage, or even death of one of the two, a written document proving the termination will be necessary.
This statement, under oath, must be signed and indicate the date it occurred. It should be noted that if one of the members does not want or cannot sign, the statement can be signed and delivered to the Parish Council by a single member.
It is important to know that the recognition and termination of the de facto union, through a proof document, are not mandatory procedures. However, they should be done if you want to exercise any right under this status, for example with the Tax Office, for IRS purposes.
Common real estate: What happens?
And what happens, legally, to common-law partners who share a common house in case of termination of the union?
On a legal level, the couple in a de facto union is entitled to protection of the home as in the case of divorce. If there is no consensus, the property is awarded by the court to the member of the couple who needs the house the most. This applies whether the property is rented, purchased by both or by only one.
This is the general rule: in case the couple does not have children, the property should go to the individual who needs it the most. This is identified through the analysis of the economic situation of both, age, health status, location in relation to the workplace, and the context regarding the possibility of either of them having another place to live.
Even if the house has been acquired by one of the couple members, the situations of both are evaluated. If it is declared that the other member should live in the property, the court identifies a rental value that must be paid to the former common-law partner who owns the house.
The same happens if both own the property, the neediest remains living there and must pay the rent value set by the court to the other member.
Note that court intervention is only necessary if the de facto union partners, now separated, cannot reach a decision agreed upon by both.
If you are reorganizing your life after the end of a de facto union and have doubts related to mortgage credit, talk to Poupança no Minuto. Our credit intermediaries help you find the best solution, with total independence and at no cost.
We support it with clarity, empathy, and speed, so that this new chapter of your life begins with stability.