Feb 11

Reduced Scope of Community Property and Enforcement of a Judgment against One of the Spouses

Tags:

Enforcement of a judgment to collect a debt incurred during a marriage by one spouse only cannot be conducted against any property which was part of a dissolved community property (where the scope was reduced or which was terminated) that has been subject to settlement

(Resolution of the Supreme Court of the Czech Republic of 21 September 2020 ref.no.: 20 Cdo 2967/2019-516)

 

The Supreme Court of the Czech Republic adjudicated repeatedly that enforcement of a judgment may be ordered also against property which was part of a dissolved community property (“CP”) which was not settled as at the date of commencement of the enforcement proceedings. Based on the above-mentioned, the Supreme Court of the Czech Republic deduced, by converse inference, that enforcement of a judgment to collect a debt incurred during a marriage by one spouse only cannot be conducted against any property which was part of a dissolved community property that has been subject to settlement.

In the said resolution, the Supreme Court of the Czech Republic was addressing the question of whether it is a sufficient defense for the spouse of the obligor that the community property has been settled only partially after dissolution. In the reviewed case, the obligor and his wife made an agreement to reduce the scope of their community property under which real properties became owned by the wife. Later, enforcement of a judgment was ordered against the same real properties owned by the obligor’s wife.

The primary consideration of the Supreme Court of the Czech Republic was based on the fact that together with the reduction of the scope of their community property, the obligor and his wife made a settlement, even though only in respect of the real properties which became solely owned by the wife. The fact that the spouses failed to agree on a settlement share is not relevant, according to the court, since the absence of an agreement on a settlement share is not a condition for a partial settlement taking effect in respect of properties that were part of a community property the scope of which was reduced.

What does it mean for you? If you made an agreement to reduce the scope of community property under which particular properties became owned by one of the spouses, enforcement of a judgment to collect a debt incurred by the other spouse during the existence of community property cannot be ordered in respect of any properties which, under the agreement to reduce the scope of community property, became owned by the “non-obliged” spouse´.

We will be happy to assist you with any issues of enforcement procedures against property of a wife/husband and we would like to offer our legal services also in respect of reducing the scope of, dividing or settling your community property.