How to divide property during a divorce and what rules apply to it in the Universal Communion of Goods.

The universal communion of goods is a patrimonial regime in Brazilian law that governs the economic relationships between spouses.

It includes nearly all items obtained before and during marriage, making it a popular choice for couples wanting to combine their assets.

This article will outline the key characteristics, legal consequences, and areas of concern of this system, with a specific emphasis on how attorneys can assist their clients in both advisory and adversarial situations.

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What does Universal Communion of Goods mean?

In a system of universal sharing of wealth, all spouses combine their assets into one common pool.

This implies that both the items acquired prior to the marriage and those gained afterward are considered shared assets of the couple.

This regime’s primary aspect involves complete sharing, which includes sharing both assets and debts incurred for the family’s benefit.

The plan is regulated by the Civil Code, specifically in Articles 1.667 to 1.671, and requires an antenuptial agreement for formalization.

This necessity arises when there is no explicit indication, leading to the application of the partial community property regime by default.

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Which items are included in the Universal Communion of Goods?

The items being brought into a global community consist of:

• Items obtained before or during marriage, regardless of the person who acquired them.
• Donations and inheritances received prior to marriage, unless specified differently in a will.
• Earnings from the personal assets owned by both partners.

Which items are not included in the Universal Communion of Goods?

Exceptions are allowed under Article 1.668 of the Civil Code, despite the regime’s scope.

Goods that are excluded from communion include:

• Donated or inherited goods with a non-transferability clause.
• Personally owned items like clothing and work tools.
• Each spouse’s work achievements.
• Retirement funds, earnings, or payments received as recompense.

These exceptions are intended to protect the unique identity of partners in certain circumstances, even within such a thorough system.

Refer to article 1.668 of the Civil Code.

Excluded from communion are those specified in Article 1,668 of the Civil Code.

Goods donated or inherited with the condition of non-transferability and their substitutes.

The ownership of trust property and the entitlement of the heir under trust, prior to fulfilling the suspensive condition, are documented.

Prior debts before marriage are not considered unless they stem from individual expenses or benefit both parties.

Donations made by one spouse to the other with the provision of non-sharing in the prenuptial agreement.

The items mentioned in sections V to VII of Article 1.659.

Advantages and disadvantages of Universal Communion of Goods should be considered.

Benefits:

• All assets are viewed as one inheritance, making it easier to manage collectively.
• Both partners have equal rights to the property in case of separation or death, providing mutual financial protection.

Downsides:

• Debts from one spouse can impact shared assets, posing financial risk for both partners.
• Spouses lose independence over their personal assets, leading to potential conflicts in specific circumstances.
• Divorce complexity arises when dividing assets, which can be particularly challenging when dealing with extensive collections or assets that are hard to evaluate.

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How to divide property during divorce under the Universal Communion Regime?

All property obtained before or during marriage is considered shared by spouses in the system of universal communion, with some legal exemptions.

In case of marriage dissolution, assets should be split equally between both parties, irrespective of the original ownership or registration.

Learn how to divide property under the system of universal sharing of goods below.

Identification of Goods Both Common and Deleted

• Common Goods: This refers to all assets obtained prior to and during the marriage.
• Excluded: They are not part of the sharing of goods that are considered non-transferable, such as inheritances, donations with a non-transferability clause, and personal items, according to the law.

Evaluation of Heritage

Conduct a thorough evaluation of all items to guarantee equitable sharing. Collaborate with a specialist as needed, particularly for valuable assets like real estate and business investments.

Debts incurred while married

Obligations obtained for the family’s benefit should be divided between the spouses, except as outlined in the prenuptial agreement or in special circumstances.

Benefit Sharing Formalization

The separation should be made official through a friendly agreement, ideally approved by a court.

If there is no agreement, the matter will be settled in court through the presentation of evidence and arguments to support any conflicting views.

Necessary documentation is required.

Property documents such as certificates, contracts, records, and assessment receipts should be arranged and shown to the client. Explain to the client the significance of clear documentation to prevent potential disagreements.

This methodical system helps guarantee that division is carried out justly and effectively, upholding the rights of both parties and avoiding unnecessary disputes.

What occurs to the goods in case of death under the Universal Communion of Goods system?

If one spouse dies in a marriage with universal community property, the surviving spouse has the right to half of the shared property because it was already considered their own under the marriage regime.

Half of it will be distributed among the heirs according to the order of hereditary vocation outlined in Article 1.829 of the Civil Code.

This article gives importance to:

1. Descendants, including children and grandchildren if necessary.
2. Ascendants refer to parents or fathers when there are no descendants.
3. If there are no children or parents, collateral relatives will inherit.

Tips for attorneys handling the Universal Benefit Communion system

Here are some useful recommendations regarding the universal sharing of goods.

Antenupcial Pact Orientation

It is essential to clarify to clients the significance of creating a thorough prenuptial agreement that contains precise clauses to safeguard the rights of both partners.

This can help avoid future disputes over assets and clearly define which assets will not be shared, such as inheritances or donations with non-sharing clauses.

Providing Preventative Advice

Spouses will have meetings to discuss the financial and legal implications of the universal community regime, considering each individual’s assets.

Show how this system can impact situations involving debt, inheritance, or the end of a marriage.

Estate planning and continuity planning

Assist your clients in arranging items in an organized way, incorporating a well-thought-out plan.

This includes creating lists of assets and liabilities, as well as drafting wills and other necessary paperwork, to prevent issues in case of divorce or the death of a spouse.

Conflict resolution and the process of mediating disputes

In cases of disagreement, it is best to focus on mediation to reach an amicable agreement. This approach saves time and money and helps maintain positive relationships between the parties.

Be ready to engage in transparent discussions and offer equitable and impartial resolutions.

Thorough examination of debts and responsibilities

Evaluate the financial responsibilities accumulated during the marriage thoughtfully. It is important to consider family debts fairly when dividing them to avoid unfairness or burdening one party excessively.

Education regarding rights and responsibilities

Inform your customers about their rights and responsibilities under the universal communion regime, which states that all goods will be shared equally regardless of ownership or registration.

This understanding lessens uncertainties and potential future disagreements.

Legal monitoring throughout all phases.

Offer assistance throughout all aspects of marriage and divorce, such as estate planning, asset assessment, and distribution.

Consistent monitoring aids in avoiding issues and effectively addressing conflicts.

These methods enable the attorney to proactively and strategically safeguard clients’ interests while minimizing the potential for property disputes.

The lawyer plays a crucial role in preventing conflicts within the Universal Communion of Goods.

The universal sharing of property between spouses involves complete sharing of assets, including those acquired before and during marriage, as well as certain debts.

This system has benefits like easy asset management and shared financial security, but it also comes with difficulties, particularly related to financial risks and the reduction of personal financial control.

Lawyers working with clients who choose this system must pay close attention to legal aspects and financial consequences, providing guidance on prenuptial agreements, asset division, and inheritance.

Proper legal guidance can help avoid conflicts and guarantee that spouses’ rights are upheld in all circumstances, including marriage and its potential end or death.

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