Do you want to know the difference between a will (testamente), a prenuptial agreement (ægtepagt) and a co-ownership agreement (samejeoverenskomst), and when it makes sense to invest in them? Then read on here.
- Will
- Prenuptial agreement
- Co-ownership agreement
- How do I get it drawn up?
Will, prenuptial agreement and co-ownership agreement. Many people don't think about the importance of regulating their personal and financial affairs when they buy a home. However, it can be a really good idea to do this in connection with your home purchase. If you have the documents drawn up, you can lean back in your new living room knowing that your assets and wishes will be respected in the event of death, dissolution of cohabitation, or separation/divorce from your spouse.
Will. Everyone needs a will, they just don't know it yet.
It can be uncomfortable to talk about what should happen to your money and assets when you're no longer here. However, a will is a life investment that, in the end, you will be glad is in place when death eventually occurs.
A will regulates who is to inherit your assets. In Denmark, due to the rules of the Inheritance Act, spouses and children (also called forced heirs, or livsarvinger) have a statutory right to a minimum share of the estate. This means that 25% of your assets must be distributed to your spouse and children. You are free to dispose of the rest of your assets as you wish.
If you are married, you can draw up a joint will with your spouse, in which you can provide for each other in the event of death. This means that the surviving spouse can be allowed to stay in your shared home and inherit as much as possible after the spouse who passes away first. Due to the forced heirship rules, this means that your children together receive 12.5%, and the remaining 87.5% can go to the surviving spouse.
Likewise, unmarried cohabitants can provide for each other in a joint will. But if no will is drawn up, there is no right of inheritance between cohabitants, and the inheritance will go to the forced heirs, who in the case of an unmarried person would be the children or parents of the deceased.
There is therefore no excuse for not having a will drawn up. You can use it whether you are single, cohabiting or married. Simply see it as an opportunity for you to decide for yourself who is to inherit your assets if you pass away.
Prenuptial agreement. If you are married, or planning to be, you should keep reading. The starting point in Danish law is that spouses have community property (fælleseje). This means that everything you and your spouse own before and during the marriage becomes community property. Put another way: whatever you own, your spouse has a 50% claim to in the event of divorce.
A prenuptial agreement therefore regulates the assets in your marriage and how these assets are to be divided in the event of divorce. Among other things, you can choose to have a combination separate-property prenuptial agreement (kombinationssærejeægtepagt) drawn up. This means that if your marriage ends because one of you passes away, your assets are community property and must be split 50/50. However, if your marriage ends due to divorce, your own assets are completely separate property, and you do not have to share your own assets with your spouse.
A prenuptial agreement can be a good thing to draw up at the start of, or during, your marriage, so that by mutual agreement you decide how your assets should be divided if your marriage ends in one way or another.
A prenuptial agreement can advantageously be drawn up at the same time as a joint will, so that the wishes regarding division of assets in the prenuptial agreement are respected in the will.
Co-ownership agreement. Are you going to buy a home with your partner, your mother, your best friend or perhaps your cousin? Then you need a co-ownership agreement.
The co-ownership agreement regulates matters relating to your shared home and is a good way to set out solutions to possible future conflicts. Among other things, you can agree on how operating expenses should be divided between you, that neither party can sell the property without the other's consent, and that if one party wishes to sell, the other gets right of first refusal.
In addition, you can specify what each of you has contributed of your own funds to the property. This means that when you sell, you can decide how the sale proceeds should be divided. The advantage of this is that if you contribute different amounts, you can get these contributions back.
Let's illustrate this with an example:
How do I get a will, prenuptial agreement or co-ownership agreement drawn up? A will, a prenuptial agreement or a co-ownership agreement is drawn up in collaboration with a lawyer or a legal advisor at Bomae. The document must be signed by you as well as either two witnesses or a lawyer. You can create these documents once you have turned 18.
To ensure that your will is stored correctly, it is recommended to have it signed at a notary (notar). The notary is affiliated with the courts and registers the document in the Central Register of Wills. The notary's signature can take place in any judicial district.
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