The termination of a long-term relationship is a significant event that encompasses various dimensions: emotional, legal, and financial. Whether it involves a divorce, the dissolution of a registered partnership, or the end of cohabitation, each process comes with its own challenges and requirements. The process requires a thorough consideration of the rights and obligations of all parties involved, and the way assets, care, and other important aspects are divided can have profound consequences for the future lives of those affected. Seeking expert advice—both legal and financial—is therefore crucial to ensuring that everyone’s interests are optimally protected and that a fair and balanced resolution is achieved.
1. Divorce
A divorce is more than just the formal dissolution of a marriage; it is a process in which deeply rooted emotional, legal, and financial issues converge. Ending a marriage means letting go of a shared history and reshaping each party’s future. During a divorce, agreements must be made regarding the division of joint assets, alimony, and the care of any children. In many cases, additional arrangements are necessary, for example, when prenuptial agreements apply or when a business is involved. It is essential that both parties take the time for thorough consideration and, if possible, explore mediation. Seeking professional advice in a timely manner can help prevent the divorce from escalating into a prolonged and costly legal battle, ensuring that everyone’s interests are fairly represented.
2. Business and Divorce
When one or both spouses are entrepreneurs, a divorce becomes even more complex. Businesses involve a range of financial variables: in addition to a fixed salary, business profits, dividend distributions, and other forms of income may play a role. This makes it difficult to determine a clear-cut “fixed” income. Furthermore, the value of a business can fluctuate significantly during the marriage due to investments, growth, or other economic developments. Therefore, obtaining expert advice on business-related aspects such as company valuation, business transfer, and tax implications is of great importance. Such expertise helps to prevent conflicts over the division of the business and ensures that business interests are settled in a balanced and fair manner, safeguarding the future of both parties and, if applicable, the continuity of the company.
3. Dissolution of a Registered Partnership
The dissolution of a registered partnership shares many similarities with a divorce, but there are some unique legal and practical differences. In a registered partnership, clear agreements are often made in advance regarding asset division and childcare, but there is no standard legal framework as there is with marriage, unless explicitly agreed upon. If both parties agree on the settlement, the partnership can be dissolved without court intervention, making the procedure generally less formal and less burdensome. However, in cases of disagreement or when minor children are involved, a legal procedure is required. In such cases, the court ensures that the interests of all parties—especially those of the children—are handled in a fair and balanced manner. It is essential that both parties document their agreements clearly and transparently to prevent prolonged disputes and legal complications in the future.
4. End of Cohabitation
When a relationship ends without marriage or a registered partnership, it is referred to as the termination of cohabitation. This type of relationship does not have automatic legal protection, and the division of jointly acquired assets is often based on informal agreements or verbal understandings. This can lead to uncertainties and disputes regarding the distribution of a shared home, joint bank accounts, or investments accumulated during the cohabitation. In many cases, there is no entitlement to alimony unless exceptional circumstances apply, such as a significant difference in financial capacity or the presence of children. Therefore, it is crucial that cohabiting partners establish clear and binding agreements in advance, ideally through a cohabitation agreement, regarding the division of assets and financial responsibilities in case of separation. Seeking legal advice when drafting such agreements can help avoid conflicts later and ensure a smooth settlement when the cohabitation ends.
