Unmarried couples who live together in Sweden are governed by the Cohabitees Act 2003 (sambolagen). Living together is much the same as being married, yet the law does not give the same protection to the couple.
Consider this:
- As a couple there is no automatic right of inheritance. If the couple wish to leave their assets to each other then they must write a legal last will and testimony. It is also important to check who your beneficiaries are on any insurance policies, pension funds etc. It cannot be assumed that your cohabitee will inherit your pension, life insurance etc.
- The Act governing property settlement only covers the joint home and anything that has been acquired during the period of the relationship. That means that anything the parties brought with them to the home is not part of the property settlement. Your partner will not inherit from you but rather your children are the sole heirs to your estate. In the event that there are no children then parents or siblings are your legal heirs.
- If both you and your partner have children from an earlier relationship then only your biological children are your heirs.
- There is no obligation of spousal support between cohabitees.
- When a common-law marriage ends for any reason (death or separation), each party has a right to half the property and anything purchased for joint use during the relationship. Anything taken into the relationship remains the property of the original owner. Anything purchased that is not for joint use is the property of the individual and claims cannot be made on it by the other party. By writing a partnership agreement, a testament, or document outlining donation it is possible to sidestep the rules of single ownership.
- Should you move into your partner’s home and contribute money and work on the property it is recommended that you write a partnership agreement which governs the assets, cash and mortgage payments of the party who does not own the property. Debt certificates should also be adjusted in the event that the other party becomes jointly responsible for the loan on the property.
Joint or Personal Possessions
It makes no difference who has paid for the possessions or the property. The underlying question is whether or not they have been acquired for joint use. Other assets, personal possessions such as cars, boats and sports equipment that has not been acquired for joint use are not part of the settlement. It might be the case that they are jointly owned, in which case, in the event of a separation, one of the parties can buy out the other. Alternatively they can be sold and the income from the sale divided.
Partnership Agreement
If you do not wish to apply by the laws governing settlement then it is crucial that you write a partnership agreement. It can be written before or during the relationship and must fulfil the following requirements:
· Be in writing
· Signed by both parties
· Does not need to be witnessed or registered.
The Family Home
If the property and other effects are jointly owned the settlement is carried out according to the Cohabittee Act. The partner in greatest need of the family home, for example, because he or she will have custody of the child/children, has the right to remain in the home unless it is an unreasonable option. The one that takes over the family home is to compensate the other with half the value of the home.
A property that was attained by one of the parties before the couple moved in together is not considered to have been obtained for joint purposes unless it was obtained purely for the purpose of joint residence. Even if the property is not to be included in settlement there may be cases where the person in greatest need is the one who will stay there, for example if there are young children. In this case then the partner who remains in the home will compensate the other the entire market value of the home.
It is recommended that couples document which possessions have been obtained for joint purposes. This can be done by writing a list of items that are joint possessions and what is not to be part of a settlement, that is to say who owned what prior to cohabitation.
Prenuptial agreement
A pre-nuptial agreement is one where the parties decide prior to settlement what will be personal property and what will be included in the settlement. Settlement according to the law governing marriage assumes 50/50 division of all possessions.
There are three alternatives for pre-nuptial agreements
- That everything is to be personal effects. The parties come to an agreement that no possessions are to be divided and each keep their own possessions, even those obtained in the future, inherited or received as a gift.
- That everything each party owned prior to the marriage are personal possession, but anything obtained within the marriage is jointly owned and subject to settlement in the event of divorce.
- That special possessions or assets are personal possessions. That can for example include the summer cottage, certain savings or an inheritance and gifts from family.
Example: Is an inheritance considered personal property?
If I am married and my mother, who is a widow, dies is my inheritance considered my personal property?
If your mother does not have a testament where she states the inheritance is to go to you alone then it is not considered personal possession. In the event that there is no testament then you and your partner/spouse can make a pre-nuptial agreement that the inheritance will be your personal possession. For this to be valid it needs to be signed by both parties.
Source: www.familjeekonomi.se
The Justice Department - A Brief Presentation of the Cohabitees Act www.regeringen.se/sb/d/177/a/3339