There have been a lot of foreign divorce orders dealing with Spanish property in recent years. When any division of matrimonial assets takes place it is important to ensure that any order from England, the UK and countries can be put into effect and executed in Spain.
Even when there is an agreement between the couple about the division of assets there are important tax considerations. Advice should be sought before a Consent order is agreed or before any Order over Spanish property is made to ensure each party understands the tax implications.
A different situation arises where one of the parties tries to avoid or deny the effects of an order. Under EU Regulation 44/2001 of 22nd December it is possible to ask for a foreign order to be executed in Spain. The procedure for putting the order into effect will be Spanish procedure. Brexit may affect the Regulation but there are other legal proceedings available for orders from countries outside Europe.
This allows for an embargo or charge to be placed against the property to prevent the other party from disposing of the asset. This is particularly important where property is registered in the sole name of one of the parties only. For example, a husband or wife in Spain may own property in their sole name and try to sell the asset without informing the divorcing spouse.
The Spanish court cannot alter or modify the order in any way unless there is a manifest error in the calculation or valuations.
Each case needs to be considered on its merits as tax obligations will vary. For more information on the enforcement of English and foreign divorce orders dealing with Spanish property contact us on 952 527014 or email on [email protected]