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Houses and flats

Houses & Flats / Property Rights of (previously) Cohabiting Couples

The law firm is well versed in the many questions asked in the aftermath of a broken relationship. Often, many challenges presented to a couple only become appallingly clear when the relationship no longer exists; and property rights of cohabiting couples is no exception. Further, there appear to be many unconsciously assumed ideas about this issue that retrospectively seen, may have influenced the expectations couples may have had precipitating cohabitation.

In Austrian law, it is recognized in both legal doctrine, as well as case law, that the joint purchase and/or construction or extension of a house by cohabiting partners could (subject to certain conditions) in effect, legally establish a partnership under civil law. In contrast, the mere cohabitation alone, i.e. the mere factual co-operation in terms of an economical or practical convenience; is not yet to be regarded as a partnership under civil law: A partnership agreement requires concrete rights and obligations and not merely de facto co-operation. The intention of the cohabiting partners must be directed towards enforceable rights and obligations of the contractual partners.

Accordingly, if there is an existing partnership under civil law, the dissolution of the partnership is an important reason for which the parties involved may be entitled to bring an action for civil partition (but not, for example, for payment of half the value of the house). However, if no civil-law partnership has been established, claims under the law of unjust enrichment could be applicable. Payments of money and labour - based on the law of unjust enrichment - are in principle generally recoverable due to the failure to fulfil the purpose as a result of the dissolution of the partnership.

In terms of cross-border implications relevant to property rights of (previously) cohabiting couples, the individual variables in the actual case must be specifically addressed in order to ensure enforceable rights and obligations. It follows that an experienced lawyer, specialized in this area, may be needed to navigate the (Austrian) law and clarify the legal aspects of property rights as well as to ensure concrete rights and obligations; preferably from the outset. Our law firm is well versed in the many questions asked and challenges faced in the aftermath of a relationship which has ceased to exist; and we would be happy to help you should need us. contact.


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