Community of Property Division in Amsterdam

Community of Property Division in Amsterdam

The community of property division is the process by which, during a divorce or termination of a registered partnership, the joint assets and debts are fairly divided between former partners in Amsterdam. This regime applies to marriages and partnerships entered into before January 1, 2018, unless otherwise agreed. In a city like Amsterdam, with high real estate prices and a competitive housing market, this ensures an equal share in the common estate but requires a precise inventory to avoid conflicts. The Juridisch Loket Amsterdam provides free advice to residents.

What is the community of property?

The community of property is the default matrimonial property regime in the Netherlands that automatically applies to marriages and registered partnerships before January 1, 2018, without prenuptial agreements. In Amsterdam, all assets and debts acquired during the marriage, such as an apartment in the Jordaan or income from a job in the city, fall into a shared 'estate'. What one partner earns or purchases belongs to both. Pre-marital assets remain private unless they become mixed, for example, by investing in a shared Amsterdam household.

Since the Act on the Amendment of Matrimonial Property Law in 2018, the standard has shifted to a limited community of property, where only assets acquired during the marriage are shared. For earlier marriages in Amsterdam, the full community applies unless partners choose a different regime through a notary in the area. Division occurs upon dissolution, such as divorce through the Amsterdam District Court, death, or separation in a full community.

Legal basis

The rules for the community of property division are outlined in the Civil Code (BW), Book 1. Relevant articles include:

• Article 1:94 BW: Establishes the community of property as the default for marriages before 2018.
• Article 1:99 BW: Defines the community as all assets and debts outside private property.
• Article 1:111 BW: Determines that upon dissolution, the estate is divided into two equal shares, after deducting debts and private property.
• Article 1:119 BW: Grants the Amsterdam District Court authority to impose a division procedure in disputes.

For registered partnerships, similar provisions apply in Title 6 of Book 1 BW. With prenuptial agreements, the division in Amsterdam can differ, but under the default regime, the law applies. For international couples in the city, the Hague Convention on the Law Applicable to Matrimonial Property Regimes (European rules) may come into play, which the Municipality of Amsterdam can help clarify.

Comparison with other regimes

This comparison shows that the full community in Amsterdam can be more complex during division, especially with debts, inheritances, or expensive homes in areas like De Pijp.

How does the division work in practice?

The community of property division in Amsterdam begins with an estate inventory: assets such as a canal house, bicycle, or savings, and liabilities like a mortgage or student loan. Partners often create an inventory with the help of a mediator or notary in the city. Valuation occurs as of the reference date, typically the divorce date at the Amsterdam District Court.

Step by step:

1. Identification of the estate: What is shared? A home in Amsterdam-Zuid purchased during the marriage qualifies, even if one partner covered the monthly costs.
2. Valuation: Appraisal by local experts for real estate; market prices for movable items like a scooter.
3. Settlement: Deduct debts; exclude private assets (e.g., an inheritance), but if they flow into the estate, such as for renovations, they count.
4. Division: Split the net estate in half. Buyout options are possible, or sale through Amsterdam real estate agents.
5. Approval: A settlement agreement if both parties agree, or court intervention by the Amsterdam District Court in case of disputes.

In cases involving children or a local business, the court, in accordance with Article 1:112 BW, considers third-party interests, such as nearby schools.

Practical examples

Suppose Anna and Bert married in 2010 under community of property and divorce in 2023 in Amsterdam. They own a house in Oud-West worth €500,000 (with a €250,000 mortgage), savings of €60,000, and a bicycle worth €2,000. Anna's inheritance of €100,000 remains separate. The estate totals €500,000 - €250,000 + €60,000 + €2,000 = €312,000. Each partner receives €156,000; Anna's inheritance stays private. Bert could buy out Anna for half the bicycle's value.

If one partner had pre-marital debts paid off with joint income, this requires settlement. Disputes often arise, with the Amsterdam District Court ruling based on evidence like bank statements from the Municipality of Amsterdam.

In a case at the Amsterdam District Court (2020), a pension was considered shared, even though it was in one partner's name, because it was built up during the marriage and used for household expenses in the city.