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Marriage contract VS Property sharing contract
According to Russian family law, as a general rule, property acquired by spouses during a marriage is their joint property.
There are two instruments that allow you to move away from the joint property regime and establish a different property ownership regime that suits the spouses: a marriage contract and property sharing agreement.
There are two instruments that allow you to move away from the joint property regime and establish a different property ownership regime that suits the spouses: a marriage contract and property sharing agreement.
What is the difference between a marriage contract and property sharing agreement and which instrument to choose?
Comparison criteria
Marriage Contract
Property Sharing Agreement
Comparison criteria
The moment of conclusion
Marriage Contract
Before the state registration of the marriage (in which case it takes effect from the time of the marriage) or at any time during the marriage
Property Sharing Agreement
During the marriage or after its dissolution
Comparison criteria
Marriage Contract
Property Sharing Agreement
Comparison criteria
Ownership regimes
Marriage Contract
The regime of common joint, shared or separate ownership
Property Sharing Agreement
The regime of common share or separate ownership
Comparison criteria
Marriage Contract
Property Sharing Agreement
Comparison criteria
Property in respect of which an agreement or contract is concluded
Marriage Contract
May regulate the regime of existing property as well as property to be acquired in the future
The regime of the spouses' personal property may also be modified - with regard to property acquired by them before the marriage
The regime of the spouses' personal property may also be modified - with regard to property acquired by them before the marriage
Property Sharing Agreement
Defines the property rights and obligations of the spouses in relation to the property they already own
Comparison criteria
Marriage Contract
Property Sharing Agreement
Comparison criteria
Contents of the document
Marriage Contract
Spouses have the right to determine their rights and obligations regarding mutual maintenance, how to share in each other's income, how each of them will bear the family expenses, determine the property that will be transferred to each of the spouses in case of dissolution of the marriage, and include in the marriage contract any other provisions concerning the property relations of the spouses
Property Sharing Agreement
No rights and obligations can be defined, only division of property
Comparison criteria
Marriage Contract
Property Sharing Agreement
Comparison criteria
Form, tariff
Marriage Contract
Notarial form, fixed fee
Property Sharing Agreement
Notarial form, percentage of the value of the property
Comparison criteria
Marriage Contract
Property Sharing Agreement
Comparison criteria
Necessity to notify creditors
Marriage Contract
Yes
Property Sharing Agreement
No
Thus, the marriage contract is broader in content than the agreement on division of property, and also allows you to establish the regime of ownership of the property that is only planned to be acquired (for example, if at the moment the spouses have opened accounts only in one bank, but the spouses understand that in the future may open accounts in other banks, including foreign ones, the marriage contract allows to describe this situation, using common wording, which allows to protect the interests of the spouses. In the case of a property settlement agreement, the accounts would need to be clearly named). The key difference between these tools is the fact that only a property sharing agreement can be entered into after the marriage is dissolved.
Please note that in case of an property sharing agreement after dissolution of marriage, the amount paid by the ex-spouse who received a larger share of property to the ex-spouse who received a smaller share of property, based on the property sharing agreement, is income subject to personal income tax (Letter of the Federal Tax Service of Russia dated 15.03.2017 N BS-4-11/4624 "On taxation of compensation upon dissolution of marriage" (together with Letter of the Ministry of Finance of Russia dated 02.03.2017 N 03-04-07/11811))