Divorce in Costa Rica and marital assets

Divorce and Marital Assets in Corporations: A Family Law Challenge

Marriage is a wonderful experience, but it's essential to be prepared for all outcomes, including divorce in Costa Rica. As a litigation and family law firm in Costa Rica, we can help you plan for marriage. We are also available for any potential divorce, ensuring your assets are secure and legal matters are correctly handled.

Managing Marital Assets: Individual or Corporate Ownership?

Many ex-pats purchase property in Costa Rica and face the decision of whether to own the asset personally or in a corporation in Costa Rica. Legal advice typically favors incorporating the property into a company, such as a standard corporation (SA or "Sociedad Anonima") or a Limited Liability Company (LLC). It allows for benefits like limited liability and added protection against personal obligations. The corporation may also be configured, requiring both parties' signatures to sell or mortgage the property, offering security.

However, when marital assets are placed into a corporation, it can complicate matters in the event of a divorce. Assets held by the corporation belong to the company, not the individuals. This distinction can be challenging regarding whether these assets count as marital property.

Divorce and Corporate-Owned Assets

In a Costa Rican divorce, spouses have a right to fifty percent of the net value of the marital assets. However, if a corporation holds the marital home or other vital assets, these assets are not technically considered marital property. Instead, what belongs to each spouse are the shares of the corporation, not the property itself. This situation can create challenges when dividing the actual value of assets during a divorce.

Avoiding Litigation: Proactive Solutions

To avoid potential disputes, you can address these issues in the company's articles of incorporation. You can prevent obstacles in future legal battles by explicitly stating that the corporation's assets are marital property. You can even avoid litigation in Costa Rica altogether. A shareholder agreement effectively ensures transparency and fairness in managing matrimonial assets held in corporate structures.

What Happens If Divorce Litigation Is Unavoidable?

Litigation may be required if a divorce is inevitable and a corporation holds the assets. Working with an experienced family law attorney who understands how to navigate the complexities of corporate structures in divorce proceedings is crucial.

CPG LEGAL offers expert solutions, such as disregarding the corporate veil, to ensure your rights.

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