HW Legal
What If Your Spouse Sells Marital Property Without Your Consent?
Can anything be done if your spouse sells an asset that forms part of the marital estate without your approval? Can such conduct be prevented? And can it be taken into account when the marital estate is divided after divorce?
As a general rule, the marital estate includes everything acquired by either spouse during the marriage. Certain exceptions apply, such as gifts and inheritances. (For a detailed explanation of what is and is not included in the marital estate, see our related article.)
Who May Dispose of Marital Property?
Marital property may be managed by both spouses jointly or by either spouse individually. A key distinction must be made between ordinary matters and extraordinary matters.
Importantly, what constitutes an “ordinary” matter differs from one family to another and may also change over time.
Ordinary matters are primarily transactions related to the family's day-to-day needs. Depending on the family's circumstances, this may include purchasing food or clothing, paying rent, or maintaining insurance for the family car.
Extraordinary matters are transactions that spouses would not normally undertake in the ordinary course of family life, such as selling the family car, disposing of an investment property, or withdrawing a substantial amount from savings.
For extraordinary matters, spouses must act by mutual agreement – either jointly or through one spouse acting with the express consent of the other.
When One Spouse Acts Without the Other's Consent
Problems arise when one spouse disposes of marital property without the knowledge of, or against the wishes of, the other spouse.
In such cases, the spouse whose rights have been disregarded must take active steps to protect them. Silence may effectively be treated as consent, allowing the transaction to remain valid.
The affected spouse must invoke the relative invalidity of the specific legal act. Otherwise, the transaction will remain legally effective.
How to Proceed
The invalidity must be asserted in a timely manner against both parties involved in the transaction – namely the spouse and the third party with whom the spouse dealt (for example, the purchaser).
If the asset has already been transferred, legal protection may still be sought through court proceedings. In particular, it may be possible to file a declaratory action seeking restoration of the original legal position, as if the unauthorised transaction had never occurred.
Practical Example: A Motorcycle Sold Below Market Value
A husband and wife were experiencing serious marital difficulties, and divorce appeared imminent.
Shortly before the divorce, the husband purchased a motorcycle using marital funds for CZK 120,000. A few months later, he sold it for only half of that amount.
The wife did not consent to the sale, but she also never formally objected to it.
During the subsequent division of the marital estate, she argued that the motorcycle's market value at the time of the divorce should be taken into account. An expert valuation established that the motorcycle would actually have appreciated in value and would have been worth CZK 140,000 at the time of the divorce.
The court, however, did not focus solely on the motorcycle's value. It also examined how the wife had responded to the sale when it occurred.
Had she challenged the transaction at the time and asserted its invalidity by clearly informing both the husband and the purchaser that she did not consent to the sale, the below-market sale would not have remained effective. In that case, the motorcycle's value of CZK 140,000 would have been included in the division of the marital estate.
Because the wife did not object, the sale remained valid, even though it was financially disadvantageous. As a result, only the proceeds actually received from the sale – CZK 60,000 – were included in the marital estate and divided between the spouses.
This example illustrates why a prompt and unequivocal objection is often crucial when one spouse disposes of marital property without the other's consent. Such action may significantly affect the eventual division of the marital estate.
How to Protect Yourself If Your Spouse Is Moving Assets Out of the Marital Estate
If serious disputes arise between spouses and one of them begins transferring or selling marital assets, it may be appropriate to consider divorce and the subsequent division of the marital estate. For a more detailed explanation of what is and is not included in the marital estate, see our related article here.
Divorce terminates the marital estate going forward. After the divorce, each former spouse acquires and manages property independently. The division of the marital estate concerns only assets acquired and liabilities incurred before the divorce.
If an immediate divorce is not possible (for example, because proceedings concerning child custody arrangements are still pending), we generally recommend considering one of the following options:
- entering into a notarial agreement establishing a separate property regime; or
- applying to the court for the restriction or termination of the marital property regime.
A court may grant such an application where there is a serious reason for doing so, such as one spouse's wasteful spending, irresponsible management of marital assets, or high-risk financial behaviour (for example, gambling or speculative betting).
Conclusion: The Law Favours Those Who Act
When it comes to marital property, it is not enough to disagree silently.
Anyone wishing to protect their share of the marital estate must act promptly and make their position clear. The law favours those who are vigilant, and in situations like these, speaking up at the right time can make a substantial difference.
If you are concerned that your spouse may be disposing of marital property without your knowledge or consent, contact us. We can help you protect your rights and find the most effective legal solution.