We own property abroad: what happens in a Swiss divorce?

A flat in London, a holiday home in France, an apartment inherited in Italy or a property purchased together before moving to Switzerland.

For many expat couples, the family assets do not stop at the Swiss border.

So what happens to property abroad if you divorce in Switzerland?

The foreign property does not simply disappear from the divorce because it is located in another country. But dealing with it can be more complicated than dealing with a Swiss asset.

Can a Swiss Court Take Foreign Property Into Account?

In many cases, yes.

If the Swiss court has jurisdiction over the divorce, it will generally also deal with the liquidation of the matrimonial property regime. Swiss private international law expressly gives the divorce court jurisdiction over matrimonial property issues.

This means that a property in France, the UK or elsewhere may have to be disclosed, valued and taken into account when determining what each spouse is entitled to.

But there is an important distinction between taking a foreign property into account financially and actually transferring ownership of that property abroad.

A Swiss judgment does not automatically rewrite a foreign land register.

Depending on the country concerned, additional recognition, registration, tax or notarial steps may be required before ownership can actually be transferred or the property sold.

Which Law Applies to the Property?

This is where international divorces can become less intuitive.

The fact that the divorce takes place in Switzerland does not automatically mean that every financial question is governed by Swiss law.

For matrimonial property, spouses may in certain circumstances have chosen the applicable law themselves — for example in a marriage contract.

If there is no valid choice of law, Swiss private international law determines the applicable matrimonial property law primarily by looking at the spouses’ common domicile history and, in some cases, their common nationality.

For expats who have lived in several countries during their marriage, this can make a real difference.

Whose Name Is on the Title Is Not Always the End of the Story

A common assumption is:

“My name is on the property, so it is mine.”

That may be relevant, but it does not necessarily answer the entire divorce question.

The court may also have to consider when the property was acquired, how it was financed, which matrimonial property regime applies, whether one spouse contributed more than the other and whether there are claims between the spouses.

Likewise, a jointly owned property does not automatically mean that the final economic result will simply be 50/50.

The matrimonial property analysis and the ownership recorded in the foreign land register are related questions — but they are not always the same question.

Selling the Property Is Not Always the Only Solution

If both spouses own the property, several outcomes may be possible.

One spouse may keep it and compensate the other. The property may be sold and the proceeds divided. Or its value may sometimes be taken into account as part of a broader financial settlement involving other assets.

The practical solution will depend on the applicable matrimonial property rules, the ownership structure, financing, mortgages and — importantly — the law of the country where the property is situated.

This is why international divorces often require coordination between a Swiss lawyer and a lawyer, notary or tax adviser in the country where the real estate is located.

Foreign Property Should Be Considered Before the Divorce Agreement Is Signed

This is especially important in an amicable divorce.

It can be tempting to agree that “each spouse keeps the property in his or her name” without first checking the legal and tax consequences abroad.

That may create difficulties later if the arrangement cannot easily be registered, triggers unexpected taxation or does not produce the intended result under the foreign legal system.

The best time to analyse foreign property is therefore before the divorce agreement is finalised, not after the Swiss judgment has already been issued.

A consultation with a Swiss family lawyer can usually clarify which matrimonial property rules apply, whether the foreign property must be included in the settlement and whether advice from the country where the property is located will also be required.