Liquidation of the Matrimonial Property Regime and the Regime of Participation in Acquired Property

One of the most important and often most contentious stages of the divorce process is how the assets acquired within the marital union will be shared. The Turkish Civil Code has accepted the “Regime of Participation in Acquired Property” as the legal property regime for couples married after January 1, 2002, unless a contract to the contrary is made between the spouses. This regime basically aims for the equal sharing of values gained through “labor” between spouses during the marriage. In this article, we explain what the liquidation of the property regime means and how this system works.

Fundamental Distinction: Personal Property and Acquired Property To perform property division correctly, it must first be accurately determined whether the asset is “personal property” or “acquired property.”

1. Personal Property (Assets Not Subject to Sharing) These are asset values that, by law, are considered to belong only to the respective spouse and are not subject to sharing after divorce. According to the Turkish Civil Code, personal properties are:

• Pre-Marital Assets: Any kind of asset owned by one of the spouses before getting married.

• Inheritance and Gratuitous Acquisitions: Assets passed to one of the spouses during the marriage through inheritance or gratuitously, such as donations (gifts).

• Moral Compensation Claims: Moral damages obtained as a result of damage to personal rights.

• Items for Personal Use: Items serving only the personal use of the spouses, such as clothes, jewelry, etc.

• Values Substituting Personal Property: Money obtained from the sale of a personal asset or a new asset purchased with this money (e.g., a new car bought by selling an inherited car).

2. Acquired Property (Assets Shared 50/50) These are assets obtained by each spouse as a return for their labor during the marital union and are subject to fifty-fifty sharing upon the termination of the property regime. The main acquired properties are:

• Assets Acquired in Return for Work: Salaries, wages, bonuses, premiums, and assets like houses, cars, land purchased with these earnings.

• Social Security Payments: Payments made by SSI (SGK) or other social security institutions.

• Compensation for Loss of Labor: Compensations paid due to loss of workforce, such as work accidents.

• Income from Personal Property: As a very important detail, even though personal properties themselves are not entered into sharing, the income obtained from these properties (e.g., rental income from a pre-marriage house or interest on inherited money in the bank) counts as acquired property and is subject to sharing.

How is the Liquidation (Sharing) of the Property Regime Performed? The lawsuit for the liquidation of the property regime can be filed together with the divorce case, but the decision regarding property division is given after the divorce decree becomes final. The sharing process generally works as follows:

1. Identification and Separation of Assets: First, each spouse takes back their “personal properties.”

2. Deduction of Debts: Debts related to these assets are deducted from the total value of the “acquired properties” subject to sharing.

3. Calculation of Residual Value: The net value remaining for each spouse after debts are deducted is called “residual value” (artık değer).

4. Determination of Participation Receivable: The law accepts that each spouse has a right to half of the other spouse’s “residual value.” This right is called “participation receivable” (katılma alacağı). The court calculates the participation receivable of both parties and offsets them against each other to decide how much one party will pay to the other.

Example: If a spouse buys a house with their salary during the marriage and the current value of the house (after debts are deducted) is 1,000,000 TL, the other spouse has a “participation receivable” right of 500,000 TL on this house.

Conclusion The liquidation of the property regime is the most technical area of divorce requiring legal knowledge. Issues such as which asset falls into which category, valuation of assets, status of company shares, and burden of proof require expertise. It is vital to receive legal support from a lawyer experienced in family law and property regime cases to avoid loss of rights regarding property division during the divorce process.