A shared home, renovations paid for from savings, a loan repaid by both partners. While the relationship lasts, financial arrangements often remain informal. After separation, questions arise: who owns the home, can money be recovered and who must continue repaying the loan?
Living together for many years does not automatically mean that all accumulated assets must be divided equally. A settlement requires establishing what belongs to each person, what agreements were made and how shared funds were used.
Settling cohabitation finances: do partners have joint property?
Cohabitation alone does not create the statutory matrimonial property regime. Partners can, however, purchase assets together, including real estate, and become co-owners in specified shares.
After separation, three issues therefore need to be distinguished: ownership of individual assets, obligations to banks and other creditors, and claims between the partners. Each may require a different approach. Polish Civil Code: property and obligations
A jointly purchased home: must it be sold?
If both partners co-own the home, their respective ownership shares are the starting point. The fact that one person paid more does not automatically change the shares specified at purchase. It may, however, be relevant to separate financial claims.
The main options are:
- allocating the home to one person with a balancing payment to the other;
- selling jointly and dividing the proceeds;
- physically dividing the property where legally and technically possible.
In the absence of agreement, an application may be made to the court to terminate co-ownership. A contractual termination of co-ownership of real estate requires a notarial deed. Resolving ownership does not automatically resolve the loan. Articles 158 and 210–212 of the Polish Civil Code
The home is in my partner's name, but I paid towards its purchase or renovation
Contributing money towards a home owned solely by a partner does not make the contributor a co-owner. Paying for renovations likewise does not create a share in the property.
This does not mean recovery is impossible. It is necessary to establish whether the funds were a loan, a gift, performance of a specific agreement or a contribution linked to plans for a shared life. Depending on the circumstances, rules on unjust enrichment may apply, among others.
It cannot be assumed in advance that repayment will always equal the total invoices or a particular percentage of the home's current value. The method of determining the claim requires analysis of the basis for the payment and the parties' circumstances. Valuation of such settlements has been the subject of legal questions referred to the Polish Supreme Court. Supreme Court: settlement of funds contributed towards a property purchase (in Polish)
A house built on land owned by one partner
Cases in which both partners funded construction of a house on land owned by only one person can be particularly difficult.
As a rule, a building permanently attached to land forms part of that land. If the plot belongs solely to one partner, joint funding of construction does not by itself create co-ownership of the house. Depending on the arrangements and circumstances, the contributing person may instead pursue a financial settlement for their contribution. Articles 48 and 191 of the Polish Civil Code
Who repays a joint loan after separation?
Separation does not change the agreement with the bank. If both partners remain borrowers, they remain liable under its terms. Where liability is joint and several, the bank may demand the full payment due from either of them.
An agreement between the partners that “one person takes over the home and the loan” does not, in itself, release the other from liability to the bank. Release from the debt requires an appropriate agreement with the creditor.
If one partner repays more than their share under the internal arrangements, a right of recourse may arise. Its extent depends on the legal relationship between the parties; it should not automatically be equated with half of every instalment. Articles 366, 376 and 519 of the Polish Civil Code
Can money spent on shopping, holidays and bills be recovered?
Separation does not turn all expenditure during the relationship into the other person's debt.
Everyday costs of living together must be distinguished from a loan, a jointly owned purchase or funding a partner's assets. Where there was a gift, the end of the relationship alone is insufficient to revoke it.
Relevant factors include the parties' arrangements, the purpose of payments, how purchased items were used and whether, and to what extent, the other person obtained a benefit that must be returned. Articles 405–411, 720 and 898 of the Polish Civil Code
What documents should be gathered?
Before starting settlement discussions, prepare:
- the notarial deed of purchase and the land and mortgage register number;
- the loan agreement, amendments and repayment history;
- bank statements and transfer confirmations;
- invoices and receipts for renovation, construction and furnishings;
- loan agreements and other arrangements;
- messages concerning the purpose of the money and repayment terms;
- a schedule of expenditure, including dates, amounts and who paid.
Also note who can confirm the partners' arrangements. A bank transfer proves that money changed hands, but does not always explain whether it was a loan, a gift or a contribution to shared living costs.
Is it necessary to go straight to court?
If both parties are willing to talk, first prepare a statement of assets, liabilities and mutual claims. This helps negotiations and identifies the disputed issues.
An agreement should clearly specify amounts, payment deadlines, how assets will be handed over and the scope of the settlement. For real estate and loans, the required legal form and the bank's position must also be considered.
Do not, however, postpone checking time limits. Monetary claims may become time-barred, and the limitation period does not always start on the date of separation. Different rules apply to a demand to terminate co-ownership, which is not subject to limitation. Articles 118–120 and 220 of the Polish Civil Code
Settling the finances of an unmarried relationship requires reconstructing the specific arrangements and flow of money. The better the evidence of joint purchases, investments and obligations, the easier it is to assess available claims and choose how to resolve the dispute.
Barbara Kardynia, Advocate
Barbara Kardynia Law Office
Telephone: +48 795 674 344
Email: b_kardynia@icloud.com
Website: adwokatkardynia.pl