When we get married or enter into a common-law marriage, we rarely think of the word “split”. However, when two people join together, so do their estates, and it is prudent to establish clear rules for managing these assets going forward. In Ecuador, the legal mechanism for this is the marriage contract, an agreement that allows couples to define how their assets will be managed before they get married or at any time thereafter, thus guaranteeing an orderly financial coexistence.
In a civil marriage, a marital partnership is formed, which implies that an economic regime arises between the spouses that merges their assets. Marital contracts are agreements that the couple can establish to modify the rules of this marital partnership. One can choose to keep certain assets in common, exclude others or even separate the estates completely. The main advantage of these agreements is the prevention of future conflicts, by having clear rules from the beginning regarding the administration and ownership of the assets.
The assets that are not part of the marital partnership are those acquired before the marriage and those obtained during the marriage free of charge, such as inheritances or donations. Everything else enters into the marital partnership by default. Marriage contracts allow couples to customize these rules according to their needs, establishing which assets will be common and which will be kept as individual property. This makes the capitulations a flexible and adaptable tool to different family and economic situations.
It is possible to modify the marital contracts at any time, provided that both spouses agree. This flexibility allows the equity arrangements to evolve with the relationship, adapting to new circumstances and needs. If certain assets are not included in the capitulations, they will follow the standard legal provisions of the marital partnership. In addition, the marital partnership can be dissolved without terminating the marriage if both parties agree that each will manage his or her own assets independently.
In order for the marriage contracts to be valid, they must comply with certain formal requirements. They must be executed in a public deed before a notary public and registered in the Civil Registry in the margin of the marriage certificate or the declaration of common-law marriage. If they include real estate, they must also be registered in the Land Registry of the corresponding canton. This process ensures that the agreements are legally recognized and enforceable against third parties.
Marriage contracts are not required for all couples. For those who start their life together without significant assets, they may not seem essential. However, in cases where one spouse has more resources, children from previous relationships or businesses that could represent financial risks, capitulations become crucial to protect the family estate against any eventuality.
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