Cohabitation and Separation
According to statistics, Finnish cohabitations often come to an end, particularly in the early years of the relationship.
Some couples who live together and start families may eventually marry, while others do not see marriage as necessary even over time. In the event of the end of a cohabitation, there is no division of property like in divorce; instead, property separation takes place. Generally, each partner retains the property that belongs to them as the owner.
Property separation can be agreed upon by creating a property separation agreement. If property separation cannot be achieved through agreement, it is possible to apply to the district court for the appointment of a division of property administrator to oversee the property separation process.
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When a cohabitation ends, it is possible to demand compensation from the other party for the contribution made to the joint household. If one of the partners has gained unjust enrichment at the expense of the other, the spouse who faces an unfair situation in terms of property division may be entitled to receive compensation from their partner. The compensation can be agreed upon by the parties themselves, or a compensation claim can be submitted to a court-appointed estate administrator for the purpose of property separation. If the appointment of an estate administrator has not been requested, a lawsuit must be filed in a district court.
Selection of an Estate Distributor and Application
Division will be carried out if the parties have been in a cohabitation relationship for over 5 years or if they have a common child. When there is a dispute regarding division and the parties disagree on certain matters related to the issue, the matter cannot be resolved through a settlement agreement. In such cases, it is necessary to apply to the district court to appoint an estate distributor to conduct the division between the parties. The estate distributor is usually an attorney who has extensive experience in handling separation matters. In Annia, attorney Maria Puputti handles the duties of the estate distributor. The parties are jointly and equally responsible for the estate distributor’s fee. In the context of a division case, a claim for compensation can also be made, and in this case, the estate distributor makes the decision. If compensation is the sole issue at hand, a claim for compensation must be filed with the district court.
The other party can independently apply for the appointment of an estate distributor at any time after the emergence of the division basis by submitting an application to the district court, including the candidate’s consent. In this case, the party must first request the consent of the proposed individual, verifying that there is no conflict of interest in the matter. Conflict of interest means that the attorney has not previously handled the affairs of either party, as the person appointed to the task must be impartial and unencumbered in the matter. The key criterion for selecting an individual is their experience in separation matters, rather than the location of their office, as meetings can now be conveniently attended remotely. Signatures can also be managed by mail if needed, even if the parties do not reside in the same location, or the attorney can be authorized to sign the agreement. Unfortunately, electronic signatures are not yet accepted by authorities.
Division managed by an estate distributor
When the district court orders the appointment of an estate distributor, a division meeting is organized. The parties must be formally invited to the meeting with evidence. During the meeting, the parties’ assets and debts at the time of the separation basis are examined. The primary task of the estate distributor is to seek a settlement by negotiating with the parties. If the parties reach an agreement at this stage, the estate distributor confirms the settlement as the final resolution. In the agreement, the parties waive their right to challenge the decision, and the matter immediately becomes legally binding. However, if there is disagreement between the parties and no agreement is reached, the estate distributor conducts the division according to the legislation and justifies their decision legally. Failure to address the prerequisites for the division process can potentially render the division illegal.
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