What to do if one spouse acts wastefully or endangers the family property?

Author of the article: Mgr. Vendula Růžková, LL.M., MBA, ARROWS

Marriage is not only a personal union, but also a legal and economic one. Marital property is a shared responsibility for property relations. However, if one of the spouses acts wastefully, irresponsibly or even endangers the family property, there are legal tools to deal with the situation. This article focuses on the legal procedures that can protect the other spouse and describes the course of legal proceedings, including their costs.

Legislation on the protection of SJM

The Civil Code allows the other spouse to petition the court for the dissolution or reduction of the community property if the other spouse's actions endanger the family property. The law provides:

"On the application of one of the spouses, the court shall dissolve the community property or reduce its scope if there are serious reasons for doing so, in particular because the other spouse endangers the family by his/her attitude to property or the way he/she manages it, in particular by wasteful or risky business."

This provision makes it possible to intervene in the SJM in the interests of protecting the family and its property. The grounds for intervention may be, for example:

• Excessive spending without regard to the needs of the family (extravagance),
• Irresponsible borrowing which endangers the family property,
• Business activities involving undue risk,
• Gambling or other financially dangerous activities.

How to proceed?

1. Consultation with a lawyer - the first step is to consult a family or property law specialist. The lawyer will help to assess whether the other spouse's actions meet the conditions for a petition for dissolution or reduction of SJM and will prepare the appropriate documentation.
2. Gathering evidence - when filing a petition, you must provide evidence to support the allegations of wasteful or threatening conduct. Typical evidence includes:
   
   • Bank statements showing excessive expenditures,
   • Loan or credit agreements,
   • Evidence of gambling or other risky activities,
   • Third party testimony that may corroborate problematic behavior.
3. Filing a petition with the court - the petition for dissolution or reduction of the community property is filed with the competent district court of the spouses' place of residence. The petition must include:
   • Identification of both spouses,
   • A description of the wasteful or threatening conduct,
   • A proposal for a specific solution (dissolution or reduction of the matrimonial property),

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The course of the court proceedings

The proceedings are conducted as a so-called uncontested proceeding aimed at protecting the family property and regulating the legal relations between the spouses. The key points of the proceedings are:

• The filing of the petition: Proceedings are initiated on the application of one of the spouses.
• Court proceedings: The court examines the factual allegations and evidence presented and may request additional documents or witness statements. If an expert opinion is required, the court may appoint an expert.
• Court decision: If the court finds that the actions of one of the spouses really endanger the family and its property, it will decide to dissolve or reduce the SJM. The decision is constitutive, which means that the change in the legal regime takes effect from the moment of the decision, not retroactively.

Costs of the court proceedings

In uncontested proceedings, the parties generally bear their own costs.

"In cases under this Act, the parties shall bear their own costs, unless otherwise provided by this Act or by other legislation."

This means that each spouse bears the costs of legal representation, evidence gathering or expert reports out of his or her own resources.

• Court fees: A court fee of CZK 2,000 is payable for filing the petition.
• Exceptions: If one of the parties has acted arbitrarily or abused the law (e.g. filed vexatious motions), the court may decide to award costs to the other party. However, such situations are exceptional.

After the court has made its decision

If the court decides to dissolve or reduce the SJM, this has the following consequences:

• Dissolution of SJM: Each spouse administers his/her property separately, both for assets and liabilities.
• Reduction of the community of property: The court's decision will define exactly which items remain in the community of property and which are excluded.

Summary

If one spouse acts wastefully or endangers the family property, the legal system offers effective tools to protect the interests of the other spouse. Court proceedings for the dissolution or reduction of the matrimonial property are conducted as uncontested proceedings in which the parties bear their own costs. The key to success is careful preparation of the petition, gathering of evidence and qualified legal assistance. When done correctly, the risk of property damage can be minimised and the stability of family finances can be ensured. If you need legal advice or help protecting your assets in a similar situation, do not hesitate to contact us. We will be happy to provide expert support and help you find the most appropriate solution.