Gifts, savings & debts

• What happens to gifts given during a non-marital relationship when the relationship ends?
• What happens to previously shared assets when a relationship ends?
• Am I liable for my ex-partner’s debts?
• When and how could I be made liable for partner’s debts?
• What happens to mutual savings when a non-marital relationship ends?
• Is marriage an analogy to cohabitation in terms of legal entitlements?
• What cross-border issues play a role in terms of gifts, savings, and debts in a relationship?

Gifts, savings, and debts in a relationship may give rise to much uncertainty and conflict – not to mention litigation – following the end of a relationship. Questions such as the abovementioned are often asked for the first time following the end of a relationship, as they simply do not occur to many people who hopefully embark on it. Fortunately, an experienced and specialized family lawyer may be able to foresee as well as retroactively resolve many of the typical questions as exemplified by the above. For example, to answer the first question according to Austrian law: if the gift given by a life partner is gifted out of pure generosity, the giver may either later revoke the gift (in accordance with §§ 947 ff ABGB) or alternately contest the gifting contract due to a mistake of motive in accordance with § 901 ABGB.

Pertaining to debts: In principle, according to Austrian law, one is generally not liable for the debts of the other partner. However, if both partners take out a loan from the bank, they are both debtors, even if the loan is only used to purchase - for example - the car of one partner. However, the Consumer Protection Act must be observed here. If a consumer joins an obligation as co-debtor, guarantor or surety (intercession), the creditor must inform him of the debtor's financial situation if he recognises or must recognise that the debtor is unlikely to fulfil his obligation in full or at all. If this information has not been provided, the intervener (i.e. the bank) is only liable if it would have assumed its obligation despite such information (Section 25c KSchG).

To address the question about marriage: According to Austrian law, if a cohabitation leads to a marriage, the property brought into the marriage by the cohabiting partners individually or jointly retains its previous legal classification, even if it is joint property, and does not belong to the assets to be divided in the event of the dissolution of the marriage. According to the clear wording of the Austrian law, the point in time for the assessment of the legal fate of property brought into the marriage is the date of the (civil) marriage. It follows that the prevailing opinion holds that marriage law cannot simply be applied by analogy to a cohabitation as such.

Given the implications and intricacies of these issues, they can become rather complicated in practical and legal terms. Fortunately, an experienced and specialized family lawyer may be able to foresee as well as retroactively address many of the typical questions as exemplified by the above. WeI can guide you through Austrian law, navigate cross-border concerns and settle these affairs with tact and proficience. contact.

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