Anglo-Spanish family law and property division after death

A British couple divorced in the UK and owned a holiday property in Marbella, Spain, registered at the Spanish Land Registry in equal shares. As part of the divorce settlement, it was agreed that the ex-wife’s 50% share would be transferred to her ex-husband. However, only UK legal advice was taken at the time, and the necessary steps in Spain were not completed.

Years later, the ex-husband became seriously unwell and wanted to make sure the transfer had been properly finalised in Spain. Bringing the position up to date caused significant delay and extra cost, and created considerable stress for him and his family at an already difficult time.

How the client was helped

The client was advised to sign a separate Spanish Will under the laws of England & Wales to make the probate process in Spain smoother, faster, and cheaper in terms of legal fees and taxes for the beneficiaries. In addition, a Lasting Power of Attorney in favour of Spanish legal professionals were entered into in order to protect the client’s interests in the joint property transferred under Spanish law.

The case involved initially a dissolution of joint property ownership (in Spanish named, “extinción de condominio”) through a Spanish Notary to formally transfer his ex-wife’s ownership to him without them needing to travel to Spain. However, the client sadly died before the Power of Attorney signed by his ex-wife needed was delivered in Spain.

In order to assist the beneficiaries, it was essential to understand the regulations in the UK and Spain as well of the cross-border tax implications, in order to find a tailored solution which would work across both jurisdictions.

The Outcome

After careful consideration of the tax position, a special type of deed called in Spanish, “Escritura de disolución de condominio por causa de divorcio y aceptación de herencia” dissolving the joint ownership held by the deceased and his ex-wife was prepared. This resolved the ownership of the property and enabled it to pass to the beneficiaries.