Why it gets complicated

In a purely Lithuanian divorce, one court divides everything under one set of rules. Once property is spread across countries, three things can differ:

  • which court can decide about each asset;
  • which country’s law decides what is shared and in what proportion;
  • whether the decision will be accepted in the country where the asset is.

There is no single EU rulebook that settles this for Lithuania. Some EU countries apply a common Regulation on matrimonial property, but Lithuania is not among them. So Lithuanian courts use Lithuanian rules and the treaties Lithuania has signed, while courts in, say, France or Germany may use the EU Regulation. The same couple can get different answers depending on where the case is heard.

Which law applies to your property

A Lithuanian court starts with Article 1.28 of the Civil Code:

  1. If the spouses live in the same country, that country’s law applies.
  2. If they live in different countries, the law of the country of which both are citizens applies.
  3. If they have different citizenships and never had a common home, the law of the country where they married applies.

Choosing the law in a marriage contract

Spouses can choose the law for their property in a marriage contract. The choice is limited to the law of a country where they live or will live, where they married, or of which one of them is a citizen.

Two limits protect others. A chosen law can be used against third parties, such as a bank, only if they knew or should have known about it. And for real estate, it works only if the property registration rules of the country where the property is located were followed.

An example

Tomas, a Lithuanian citizen, and Anna, a German citizen, married in Vilnius and lived there for five years. They bought a flat in Vilnius, then moved to Munich, where they bought a car and opened joint savings. Now they want to divorce.

If the property case is heard in Lithuania, the court starts with the law of the country where they both live, Germany, unless they chose a different law in a marriage contract. From the Lithuanian point of view, only a Lithuanian court can decide who owns the Vilnius flat, wherever the rest of the case is heard. If the case is heard in Germany, the German court applies the EU Regulation, which can lead to a different law and a different result. Before either of them files, it is worth comparing both routes, or agreeing a settlement that covers everything.

How Lithuanian law divides property

If Lithuanian law applies, the basic rules are:

Joint property

What either spouse acquires during the marriage is presumed to be joint, even if it is registered in only one name.

Personal property

Property owned before the marriage, gifts and inheritances received personally, and property bought with personal money with a clear intention to keep it personal remain individual.

Equal shares

Joint property is presumed to be shared equally. Each spouse’s financial contribution does not change this by itself.

Exceptions

The court can depart from equal shares in specific situations, for example to protect the interests of the children or because of one spouse’s health. Fault for the breakdown of the marriage is not in itself a reason.

Hiding or moving assets

If one spouse gave away or moved joint property without consent within a year before the case, their share can be reduced by that value. A share can also be reduced by income the spouse hid from the family, for up to five years before the case.

Property in Lithuania, property abroad

Real estate in Lithuania

Only Lithuanian courts can decide rights to real estate located in Lithuania. A foreign divorce decision that tries to transfer ownership of a Lithuanian flat may not be recognised here on that point.

Real estate abroad

The reverse is also true: a Lithuanian court generally cannot decide rights to real estate in another country, unless EU law or a treaty allows it. In practice, this may mean:

  • dealing with the foreign property in the country where it is;
  • taking its value into account when dividing other assets;
  • or, best of all, an agreement between the spouses covering all property, executed in each country.

Bank accounts, investments, pensions

Movable assets are easier to include in one case, but proving what exists abroad can be hard. Collect statements early. A Lithuanian court can order interim measures, such as freezing funds, if there is a real risk that money will disappear.

Mortgages and loans

An agreement between spouses about who keeps the flat and who pays the mortgage binds the spouses. It does not bind the bank. Unless the bank agrees to change the loan, both may remain liable to it. Talk to the lender before finalising a settlement.

Practical steps

Make a list

Every asset and debt, in which country, in whose name, when acquired and how it was paid for.

Find your marriage contract

If you have one, it may already decide the applicable law and how property is shared.

Think about the forum

Where the case is heard can change the law applied to your property. Compare before filing.

Consider an agreement

A settlement covering all countries is often faster and cheaper than parallel cases. It can be approved by a Lithuanian court or notary and registered abroad as needed.

Get advice in each country where there is real estate

The rules for transferring and registering property are local.