- Maternity capital in the division of property
- How is maternity capital divided in case of divorce?
- How is a house purchased with maternity capital divided in a divorce?
- Is maternity capital divided between spouses in case of divorce?
- Division of housing purchased with maternity capital during divorce
- How is an apartment purchased with maternity capital divided in the event of a divorce?
- Division of maternity capital in case of divorce
Maternity capital in the division of property
Maternity capital is not subject to division between spouses, as it is targeted support from the state. The funds will remain with the owner of the maternity capital certificate upon divorce.
The holder of the document has the right to apply for the disposal of funds (or a certain part) at any time after the child turns three years old from the date of birth. But if these funds need to be paid as a down payment on a loan or credit for the purchase of housing, they can be used at any time, without waiting for the child to reach three years of age.
Also, from January of the year, a new law of the Land Law of Ukraine came into force from December of the year, according to which maternity capital can also be spent until the child reaches three years of age to pay for paid educational services.
As for the property that was acquired using maternity capital, it will not have to be divided, since it will already be in the shared ownership of each family member.
If a family bought an apartment with a mortgage and repaid part of the debt from maternity capital funds, but decided to end their marriage, they will be required to pay off the remaining mortgage loans in half.
How is maternity capital divided in case of divorce?
According to the Family Code of Ukraine, it speaks of the joint property of spouses. It recognizes the income of each of the spouses, pensions, benefits, as well as other cash payments that do not have a special purpose.
They also say that maternity capital is exclusively targeted state support, accordingly, it is not recognized as the common property of the spouse and the monetary amount of the capital is not subject to division in the usual manner (50/50 between spouses).
Moreover, the property acquired under maternity capital for the purpose of improving housing conditions provided by law is not subject to division in the usual manner. This is the conclusion reached by the Supreme Court, which issued a decision on the case on January 26, 2016.
The courts of previous instances, with significant violations of the norms of substantive law, issued a decision on the division between the former spouses of the building, in the construction of which maternal capital funds were used, as ordinary jointly acquired property – i.e. 1/2 to each. The legal interests of the children were not taken into account by the courts, since the building was not completed and it was not possible to allocate their shares to them at the time of division.
How is a house purchased with maternity capital divided in a divorce?
Having considered the mother’s complaint, the Supreme Court recognized that, despite the fact that the house was built during the marriage, it is not jointly acquired property, since the maternity capital has a special purpose. In this regard, it cannot be divided in proportions of 50% to 50% – the children must also receive their shares when dividing the property between the spouses, and their father cannot get a share of more than 25% after the divorce!
In accordance with the implementation of their legal right, the amount of money indicated in the personal certificate will belong exclusively to the owner of such a document. But you should know that maternity capital does not always belong to the woman: the mother of the child, a man also has the right to receive and dispose of it in the following cases:
- when he independently adopts a second or subsequent child;
- the child’s mother dies, or the court declares him dead;
- the mother was deprived of parental rights;
- the mother committed a crime against her child or children.
Example
Ivanov A.I.’s wife died during the birth of her second child. The child’s father, Ivanov D.A., has the right to receive a certificate for maternity capital.
Is maternity capital divided between spouses in case of divorce?
Usually, during a divorce, jointly acquired property is divided in half. Jointly acquired property is anything that was acquired during the time the spouses were married (Family Code of Ukraine).
Maternity capital is often also purchased during the marriage of the spouses, but the reason maternity capital is not subject to division is that it has a special purpose: financial support for a family with two or more children. And funds received for this purpose are regularly not subject to division.
The amount of money specified in the certificate for maternal (family) capital in relation to property can be spent on improving the family’s living conditions. Buy housing, build a house or make repairs in a residential area, as well as pay off the debt on the acquired housing with a mortgage or use it as a down payment on a mortgage.
Example
The Sidorov spouses decided to end their marital and family relations. They decided to divide their jointly acquired property – a residential house – into ½ shares for each. In addition, the spouses have a certificate for maternity capital to receive a certain amount of money. Dividing such an amount into two is prohibited by law, the funds specified in the document will remain with the spouses and she can spend it exclusively on the purposes established by the state.
Division of housing purchased with maternity capital during divorce
The amount of maternity capital will remain unchanged until January 1, 2023, according to the law.
It is impossible to buy housing for the specified amount in our country. Accordingly, many families use maternity capital to partially pay for the purchase of housing. When buying housing with funds from maternity capital, regardless of whether it is a building or an apartment – real estate will be registered as partial property.
Shares in a residential property typically belong in equal proportions to the husband, wife, and at least two children. But there are frequently cases when one of the spouses decides to leave the family.
In this case, the share of each family member has already been determined, and, accordingly, in a divorce, only other property acquired during the marriage can be divided. In this case, it is impossible to allocate a share in the apartment in kind, since there must be a separate exit for this. In this case, the man can demand compensation equal to the value of his share and give his share to his wife.
Example
The Petrovs, a couple with two children, decided to buy a four-room apartment. The amount of money for the purchase of the property consisted of family savings and maternity capital. The apartment was purchased and registered as property, 1/4 of the share for each family member. After 5 years, the spouses decided to dissolve their marriage. The spouses have no right to divide the apartment in half, since the property was already partially owned by each from the very beginning. The husband received compensation for his share and refused it.
How is an apartment purchased with maternity capital divided in the event of a divorce?
For real estate acquired on credit, the same requirements apply as for real estate without encumbrances. If a person, when applying for a mortgage loan, uses maternity capital funds, then the apartment will have to be registered as joint shared property.
The obligation to pay the mortgage loan is imposed on both spouses. Debts are the common property of the spouses, and, like jointly acquired property, are divided in half upon divorce (Family Code of Ukraine).
Example
The Ivanovs decided to buy a four-room apartment with a mortgage, and part of the debt was paid from maternity capital. Each family member’s share in this apartment is 1/4. The spouses decided to separate. According to the law, debts acquired during marriage are also subject to equal distribution between the spouses. That is, the spouses are obliged to pay off the remaining credit debts, having previously divided this amount in half.
Division of maternity capital in case of divorce
Maternity capital should be understood as a certain financial support from the state to families in which a second or subsequent child is born. This support is regulated by the Law of Ukraine “On additional measures of state support for families with children.”
Maternity capital is expressed in a special document – a certificate for a certain amount of money that can be spent on purposes established by the state:
- improving housing conditions;
- payment for educational services for the child;
- formation of the mother’s funded pension;
- compensation for expenses on goods and services for disabled children (new direction from the year);
- receipt of monthly payments for the second child up to 1.5 years for families in which the average per capita income is below 1.5 times the subsistence minimum in the region (new direction from January 1, 2018).
A person holding a certificate for maternity capital applies to the territorial division of the Pension Fund of Ukraine with an application, where he/she indicates for what purposes the funds from the certificate will be spent.
