Spouses’ Property
There are two legal regimes of spouses’ property in the Republic of Lithuania: statutory legal regime of spouses’ property; contractual legal regime of spouses’ property.
Essence of the Statutory Property Regime in Lithuania
The statutory legal regime of spouses’ property means that the property acquired by the spouses after the conclusion of the marriage is their joint community property. The property of the spouses is considered their joint community property until it is divided or until the right of joint community ownership is otherwise terminated.
A characteristic feature of joint community property is that the shares of the spouses in the property are not defined, meaning that each spouse has equal rights to manage, use, and dispose of the joint property.
The following is recognized as joint community property of the spouses:
- Property acquired after the conclusion of the marriage in the name of both or one of the spouses;
- Income and fruits derived from property that is the personal ownership of one of the spouses;
- Income earned from the joint activities of both spouses, as well as income earned from the activity of one spouse, except for funds required for the spouse’s professional activities;
- A business and the income received from its activities or other business activity if the spouses started the business after getting married. If a business belonged to one spouse before the marriage, then the income derived from the business or other commercial activity after marriage and any increase in the value of the business is considered joint community property;
- Income received after marriage from employment or intellectual activity of either or both spouses, dividends, as well as pensions, benefits, and other payments, except for designated-purpose payments (e.g. compensation for personal injury, non-material damage, targeted financial support intended solely for one spouse, and others). Income from employment (salary), intellectual activity (e.g. license fees, author royalties), dividends, pensions, benefits, and other payments are also considered joint community property, with the exception of targeted payments.
Personal property of a spouse under the statutory marital property regime is defined as:
- Property acquired individually by either spouse before the marriage;
- Property gifted to or inherited by one spouse after the marriage, provided the gift or will does not specify that the property is to become joint community property;
- Personal items used individually by a spouse (e.g. shoes, clothing, tools for professional activity);
- Intellectual and industrial property rights, except for income derived from intellectual activity;
- Funds and items needed for a spouse’s individual business activity, except for items and funds used in a business operated jointly by both spouses;
- Compensation or funds received solely by one spouse for damages related to personal injury, non-material damage, targeted financial support, and other benefits exclusively linked to the receiving spouse’s person; rights that cannot be transferred to others;
- Property acquired by a spouse using personal funds or from the proceeds of selling personal property, provided the intention to acquire the property as personal ownership was clearly expressed at the time of acquisition.
Spouses manage, use, and dispose of joint community property by mutual agreement. It is presumed that a spouse enters into transactions with the consent of the other spouse.
Spouses have the right to choose the legal regime of their property, and they may exercise this right by entering into a prenuptial (marital) agreement, which is defined as follows:
A prenuptial agreement is an agreement between spouses that defines their property rights and obligations during the marriage, as well as after divorce or in the event of separation.
Spouses who enter into a prenuptial agreement have the right to choose the type of contractual property regime that suits them best:
- Property acquired both before and during the marriage remains the personal property of each spouse;
- Property that was the personal property of each spouse before the marriage becomes their joint property after the marriage is registered;
- Property acquired during the marriage becomes the spouses’ joint partial ownership.
Additionally, spouses may define other property relations between them in the prenuptial agreement. It is important to note that spouses may choose to apply one of the aforementioned legal regimes to all of their property, only to a certain portion of it, or only to specific items.
Spouses may choose the property regime, but they cannot establish a property regime in the prenuptial agreement that is not provided for by law.
Any provisions in a prenuptial agreement are invalid if they: Contradict mandatory legal norms, good morals, or public order; Regulate the personal non-property relations of the spouses; Define or alter the spouses’ personal rights and obligations toward their children; Limit or deprive a spouse (or spouses) of the right to maintenance or similar entitlements.