Do you think about dividing your assets? So, learn more about sharing assets and when to do it.
Every successful entrepreneur and investor knows that planning is essential to achieving your goals. From how to invest your money to sharing assets , good planning is one that foresees all phases of assets, acting preventively to ensure the best result in the face of any adversity.
Therefore, understanding how the sharing of goods is done is very important . After all, knowing how this process can affect your heritage, it is possible to act beforehand to protect it.
To help you make the best decisions, we have prepared complete content on sharing goods.
After all, what is property sharing?
Asset sharing is the division of one person’s assets with another who is entitled to receive a portion of those assets . There are two situations in which sharing can occur: as a result of death and in the case of divorce or dissolution of a stable union.
What is not included in the division of assets?
In the division of property that occurs due to divorce or dissolution of the stable union, the division of property will depend on the property regime of the relationship.
The most common is that any property acquired before marriage, which is the result of a donation or even inherited, cannot be the object of the division of property .
In this way, descendants, ascendants and spouse — classified as necessary heirs — are entitled to 50% of the total assets .
However, if there are no necessary heirs (children, parents, uncles and spouses), the total assets may be subject to the division of assets.
How does asset sharing work?
In Brazil, the Civil Code and the Property Sharing Law are responsible for regulating this process , which depends on several factors:
– the property regime, in cases of divorce or dissolution of the stable union;
– the existence of necessary heirs, in cases of death;
– also in cases of death in which one of the spouses remains alive, the division of assets will also depend on the regime of assets on which the union was based;
– the time and form of acquisition of the goods.
The action of sharing goods can be done at the end of a marriage, stable union or in case of death.
How does the sharing of assets take place?
The action for sharing assets can occur in life, judicial, extrajudicial, during or after the divorce process or the breakup of the stable union.
The sharing of assets in life is one of the mechanisms of estate or succession planning that can be done through a will or even a donation in life.
In cases of division in life , despite already guaranteeing the division of assets, the owner of the assets still preserves his right to use them until the end of his life .
Judicial and extrajudicial sharing, on the other hand, can occur during the divorce process, dissolution of a stable union or carrying out an inventory, and differ by the way the process takes place.
While judicial sharing occurs through a judicial process, with a judge’s sentence, extrajudicial sharing is simpler and occurs directly in a notary’s office.
How much does a property sharing process cost?
The cost of the process varies according to the type of property sharing carried out . You need to consider administrative fees, such as inventory preparation , attorney fees and other costs that may be embedded as well.
What are the types of property sharing?
As much as it is common to associate the sharing of assets with the end of a stable union, there is more than one type of situation that encompasses the sharing of assets or loan-to-value ratio, as shown below.
Division of property in divorce
In all cases of divorce where there is a property regime, it is necessary that the property be shared. It will serve to divide the couple’s assets fairly between the parties, depending on the current regime of the union.
However, the division of assets does not prevent a divorce from taking place. When the parties do not reach a consensus, divorce or dissolution of the stable union can be granted normally, while sharing can be carried out within 10 years after this process.
Distribution of property upon death
In cases of death, the sharing of assets occurs, preferably, between the legal heirs .
The legal heirs are the people who have some degree of kinship with the deceased and, therefore, the law grants them the right to inherit the assets left by the relative. It is also possible to participate in the sharing of assets through a will .
Look for qualified professionals to carry out your property sharing.
How is the property shared?
The way in which the division of assets takes place depends on the type of division of assets that should be applied. Therefore, it is important that you know how the sharing of goods is done in specific cases.
The property regime is the set of norms that regulate the property relations of civil marriage or stable union .
Thus, when divorce or the dissolution of the stable union occurs, the sharing of assets must comply with the rules established at the beginning of the relationship:
– Partial Communion of Assets : only the assets acquired during the marriage will form part of the couple’s assets and may be shared equally between the parties;
– Universal Communion of Assets : with the exception of assets resulting from inheritance or donation, all other assets of the couple are considered common assets and must be shared equally;
– Total Separation of Property : there is no shared property of the couple. Therefore, in this case, there is no sharing of assets;
– Mandatory Separation of Assets : similar to the previous regime of assets, this is a separation of assets determined by law, applicable to people over 70 years of age or in cases defined in court, and in which sharing does not take place either;
– Final Participation in the Questos : in this regime, even if each one has its own assets, with the separation, the goods that were bought with the money of the two parties must be shared.
in the inheritance
Within the classification of legal heirs, there are the necessary heirs who have priority in receiving the inheritance. For them, 50% of the total value of the assets is invariably reserved .
The other half can be allocated to the heirs in the will and, when there are no necessary heirs, all the assets can be left to other people through the will.
However, as the transfer of property needs to be formalized, the sharing of assets will only occur with the preparation of the inventory , which is nothing more than the determination of a person’s assets after their death.
What happens after sharing?
After the sharing of assets, new processes called “oversharing” may arise.
In cases of death, it is not uncommon for heirs to discover new assets that belonged to the person who died and that were left out of sharing for some reason. In these situations, oversharing is used .
Over-sharing is a new division process , but those assets that were not accounted for in the inventory or brought to the fore are:
– Hidden goods;
– Disputed goods or late liquidation;
– Goods located in distant places;
– Inheritances found after the sharing of goods.
The over-sharing process must follow the same conditions and guidelines referring to the inventory process, the difference is that it will be done with uncovered assets.
Wealth Planning at BV
Heritage planning allows you to structure and protect your assets in the short, medium and long term, going far beyond controlling income and expenses.
Asset management contributes to the elaboration of succession planning and also generates great savings in several points, such as taxes, fees and expenses with inventories.
But to take advantage of all these advantages, you need to count on the help of a trusted consultancy, such as BV private , which acts in a personalized way in asset management, from construction to optimization, perpetuation and transmission of your equity.
Want to understand more? Visit our blog and check out even more content on how to do your heritage planning.