“I paid more, so I am entitled to a larger share of the apartment.” When a joint loan is repaid with personal funds, that conclusion does not follow automatically.
What the Supreme Court explained
In its ruling of 9 July 2024, No. 5-KG24-78-K2, the Supreme Court distinguished payment to the seller for real estate from performance of a loan obligation to the bank. Repayment of a joint loan with one spouse’s personal money does not in itself increase that spouse’s share in the apartment purchased with the borrowed funds.
A monetary claim instead of an additional ownership share
Where the relevant circumstances are established, a right of recourse against the other spouse arises: reimbursement of the portion of the expenses attributable to that spouse. The payer’s own share of the obligation is excluded from the calculation. The entire amount paid cannot automatically be claimed.
An important distinction
Personal funds contributed directly to the purchase of real estate and personal funds subsequently used to repay a loan require different legal assessments. Conclusions about mortgage payments cannot be applied to every investment in property. A transfer from one’s own account does not in itself prove that the funds were personal property.
This is a legal position in a particular 2024 case, not a new law. Assessing a claim requires the purchase and loan agreements, bank statements, evidence of the source of funds and agreements between the spouses.
How to prepare for a consultation
- Prepare a chronology of the purchase, payments and breakdown of the marital relationship.
- Keep the loan agreement, repayment schedule and the bank’s confirmation of repayment.
- Prepare documents relating to gifted, inherited or premarital funds.
- Bring any prenuptial or marital agreement, property division agreement and court decisions.
The advocates at Planeta Zakona Law Bureau can help assess the documents, identify the appropriate claim and prepare a calculation. By appointment only.
Original source: Supreme Court ruling of 9 July 2024, No. 5-KG24-78-K2 ↗