If a Spouse Purchases Property with Money from their Personal Deposit, will they be the Sole Owner of the Property?

The Civil Chamber of the Supreme Court of Cassation issued Interpretative Decision No. 2/2022, clarifying the conversion of personal property in a matrimonial property regime. In this regime, property acquired during the marriage is considered joint property of both spouses. In the event of dissolution of the marriage, both spouses will have equal ownership shares, unless one can prove that the other spouse did not contribute to the acquisition. The decision clarifies that if one spouse uses a deposit to purchase immovable property, the property still belongs to the marital property community, even if only one spouse held the deposit.

To challenge this presumption, the spouse claiming sole ownership must provide the relevant evidence. The deposit holder can demonstrate that the funds used for the purchase came from personal property, making the property their personal asset under Article 23 of the Family Code. This is the case if the deposit holder used property received through inheritance, a gift, or acquired before the marriage. Alternatively, the deposit holder can invoke Article 21, par. 4 of the Family Code, claiming that they personally provided the funds, and that the other spouse did not contribute.

The decision emphasizes that these two possibilities are distinct and should not be confused. Under Article 23 of the Family Code, the deposit holder proves the origin of the funds without consideration of whether the other spouse has contributed. However, under Article 21, par. 4 of the Family Code, the deposit holder proves the absence of contribution by the other spouse.

Additionally, the Supreme Court of Cassation clarified that for property to be considered the personal property of one spouse under Article 23 of the Family Code, two conditions must be met. First, the property must be purchased using funds from personal assets listed in Article 22 of the Family Code (e.g., assets acquired by a sole trader spouse for business purposes). Second, the newly acquired property must serve the same purpose as the property used for its acquisition.

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