not participate in the other’s profits nor in their losses. They may also have common assets, but they will always retain individual ownership of individual assets. The third and least frequent regime, is the Participation, in which each of the spouses acquires the right to participate in the profits obtained by their consort during the time that said regime has been in force. It is a hybrid model, because during its application time it functions as the Separation of Assets regime and, once extinguished, it is liquidated following a Community of Property Society regime. In the Participation scheme both spouses enjoy full autonomy of property and separate assets. Once the regime is extinguished, its liquidation is opened to determine the initial and final estate of each of the spouses. If the difference between the assets shows a positive balance in both spouses, the one whose estate has had less growth will be entitled to receive half the difference between its increase and that of the other spouse. The issue of the marital property regime is certainly complex because it requires a thorough knowledge of the applicable Law in each case and a skilful handling of all legal subterfuges. But it is also an ideal frame to achieve good estate planning, which will undoubtedly give security and confidence to the marriage relationship. Under the separation regime, how is property ownership and financial responsibility handled between spouses? What are the implications for asset division during divorce? The Separation of Assets regime grants spouses the freedom to manage their individual assets with absolute independence. The assets and private profits prior to the application of the regime, as well as those generated during its time of application, remain within the personal sphere of each person. This is also the case with obligations, which always remain under the umbrella of responsibility of the spouse who has assumed them. When the Separation of Assets regime is dissolved, a liquidation is carried out in which a distinction is made between the assets and profits that form part of the assets of each of the spouses, without confusion. If during the time of application of the regime the spouses have acquired assets or have assumed obligations jointly, at the time of dissolution of the regime these will be distributed according to the percentage of ownership that each one holds. These characteristics make the Separation of Assets regime a very attractive model, at first glance, for people who want to protect their assets from possible risks in the future as a consequence, for example, of a contentious divorce or a poorly planned inheritance. However, the Separation of Assets regime can generate important imbalances in those situations in which one of the spouses has developed his professional activity in the labor market, generating greater assets and human capital that will be retained at the end of the relationship, while the other has dedicated himself exclusively to taking care of the family and the house. 6 LAWYER MONTHLY DECEMBER 2023 When considering a possible Divorce, it is strictly necessary to analyze the impact of the Economic Compensation for Work Reasons, which can be equivalent to a quarter of the difference between the increases in the assets of the spouses or even a greater amount.
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