Business shares as marital property are often encountered in modern society because many spouses initiate business ventures together. Therefore, it is important to understand that business shares in companies resulting from such endeavors can be considered marital property. In this article, we will provide a legal analysis of such situations according to the laws of the Republic of Croatia.
In accordance with the applicable Family Law, marital property includes all assets acquired by spouses through their work during the marriage and those deriving from such assets. This can, for example, include property gained from real estate or movable property considered marital property, winnings from games of chance, material benefits from copyrights and related rights obtained during the duration of the marital community.
Spouses are, according to the applicable Family Law, co-owners of marital property in equal parts unless otherwise agreed upon by the spouses.
Generally, business shares acquired during the marriage are registered to one of the spouses, even though both spouses are actual co-owners of those shares. Business shares as marital property belong jointly and undividedly to the spouses. If the other spouse wishes to establish their co-ownership of the business shares, they must obtain registration of their right in the court registry of the competent commercial court.
Spouses can regulate their property relations, including relations regarding business shares in a limited liability company, through a marital agreement. Such an agreement then safeguards the spouse whose name the business shares are not registered under in the limited liability company.
If such an agreement does not exist, spouses can also mutually regulate the issue of marital property, including business shares representing marital property, through an agreement on the division of marital property during the course of the marriage or after its termination.
If spouses do not enter into a marital agreement or an agreement on the division of marital property to regulate their relations regarding business shares that represent marital property, the spouse who is not registered as the holder of business shares in the limited liability company can enforce their rights regarding those shares through a court proceeding.
This article provides only general legal information and cannot be considered legal advice in specific situations. If you need specific legal advice, please feel free to contact me with confidence.