Division of Marital Property in Uzbekistan

Marriage is a free, voluntary union between a man and a woman, aimed at creating a family and giving rise to mutual rights and obligations for the spouses. The primary purpose of marriage is the creation of a family, the birth and upbringing of children. According to the Family Code of the Republic of Uzbekistan, a marriage is considered officially concluded only if it is registered with the civil registry offices (hereinafter – ZAGS). A marriage performed according to a religious rite has no legal force.

For various reasons, the marital union sometimes dissolves and the marriage terminates. Termination of marriage may occur:

• by dissolution upon the application of one or both spouses (or the guardian of a spouse declared legally incapable by a court);
• through a court decision;
• for reasons beyond the will of the spouses (death of one spouse or a court declaration that one spouse is deceased).

Divorce in ZAGS is permitted if both spouses mutually consent to the divorce and if they have no common minor children. If there is no mutual agreement between the spouses on divorce, or if they have at least one minor child, divorce is only possible through the courts. At the request of one spouse, regardless of the presence of common minor children, divorce through ZAGS is permitted if the other spouse:

• has been declared missing by the court;
• has been declared legally incapable due to a mental disorder (mental illness or dementia); or
• has been sentenced to imprisonment for at least 3 years for committing a crime.

Divorce is carried out through the courts if there is a dispute between the spouses concerning children, the payment of support for a needy, incapacitated spouse, or the division of property constituting their jointly acquired property. In such cases, one or both spouses must file a divorce claim with the court. However, the husband may not initiate a divorce case without the consent of his wife during her pregnancy and within one year after the birth of the child, even if he was not recorded as the father in the birth registry. This rule also applies if the child was stillborn or died before reaching one year of age.

Divorce through the courts may also occur in certain cases even when the issue falls within the competence of ZAGS. For example, if one of the spouses refuses to file for divorce with ZAGS, is unable to personally appear at ZAGS to submit the application, or after filing the application does not appear for the registration (formalization) of the divorce. These circumstances can be confirmed by certificates from ZAGS, local self-government bodies (“mahalla”), etc., for subsequent submission to the court.

In some cases, when a marriage is terminated, disputes arise between spouses concerning the division of their joint property. Below is an explanation of what may constitute common property of the spouses and what does not.

Common Property of Spouses

1. Property acquired by the spouses during the marriage, as well as property acquired prior to marriage registration using the joint funds of the future spouses.
2. Property acquired by the spouses during the marriage, namely:
   • income of each spouse from labor, entrepreneurial, and intellectual activity;
   • pensions, benefits, and other monetary payments received by the spouses, provided they do not have a special designated purpose (i.e., financial assistance, compensation for damage due to loss of work capacity, injury, or other health impairment, etc.).
3. Movable and immovable property, securities, shares, deposits, stakes (shares) in the capital contributed to credit institutions or other commercial organizations (e.g., LLCs or JSCs), and any other property acquired by the spouses during the marriage, regardless of which spouse’s name the property is registered under or who contributed the funds.
4. Certain personal items of the husband or wife, such as jewelry and other luxury items purchased during the marriage with joint funds.

Personal property of each spouse may be recognized as joint property if the court determines that, during the marriage, investments were made using joint property, personal property of either spouse, or labor of one spouse that significantly increased the value of the property (e.g., major repairs, reconstruction, re-equipment, etc.).

If the spouses have signed a prenuptial agreement, it may specify other rules for determining joint property and personal property. A prenuptial agreement must be notarized, otherwise it is invalid.

Property acquired in the name of one spouse in fulfillment of alimony obligations based on a written agreement between the spouses is not considered joint property.

The rights of spouses to possess, use, and dispose of property that constitutes the joint property of members of a farm or dehkan household may differ from the above rules of the Family Code of Uzbekistan, as they are determined by the laws on farms and dehkan households. The division of such property is carried out under Articles 223 and 225 of the Civil Code of Uzbekistan (i.e., the provisions of the Family Code do not apply).

Personal (Separate) Property of Husband or Wife

1. Property belonging to the husband or wife before marriage, as well as property received during marriage as a gift (e.g., under a gift agreement), by inheritance, or through other gratuitous transactions.
2. Items for individual use (e.g., clothing, footwear, etc.), even if acquired during marriage with joint funds, are considered the private property of the spouse who used them. An exception is made for jewelry and luxury items acquired with joint funds during the marriage, which are considered joint property.

Property of Children of the Spouses

1. Items purchased to meet the needs of the children (e.g., clothing, shoes, school and sports equipment, musical instruments, children’s books, etc.) are considered children’s property and are not subject to division between the spouses. If these items relate to minor children, they are transferred to the parent with whom the children will reside.
2. Deposits made by the spouses using joint funds in the names of their common children are considered the children’s property and are not included in the division of joint property. If such deposits relate to minor children, they are transferred to the parent with whom the children will reside.

Division of Joint Property Upon Divorce

When a marriage is dissolved, the division of joint property can be carried out:

• by mutual agreement of the spouses (i.e., without going to court);
• according to the rules established in a prenuptial agreement (if any);
• by filing a lawsuit in court if mutual agreement is not possible.

If there is a dispute, division of joint property is possible by claim at any time: during marriage, simultaneously with the divorce proceedings, or after divorce. In the interest of an incapacitated spouse, a claim for division of property may be filed by the guardian. The heirs of a deceased spouse have the right to file a claim to determine the deceased spouse’s share and divide the joint property.

As a general rule, claims for division of marital property are filed:

• at the permanent residence of the defendant;
• if the defendant’s residence is unknown, at the last known place of residence or where the property is located.

If the spouses ceased family relations before divorce — i.e., lived separately, used their income separately, and did not acquire property with joint funds — the court may recognize property acquired after the cessation of family relations as the separate property of each spouse and divide only the property acquired before the cessation.

If during the marriage the value of property belonging to one spouse significantly increased, such property may be recognized by the court as joint property at the request of the other spouse. The court will examine what investments (i.e., from joint property, personal property, or labor) caused the increase in value, as well as the property’s condition before and after the improvements.

If there is a duly notarized prenuptial agreement, the court will take its provisions into account when dividing property. Property not covered by the agreement will be divided according to the general rules of the Family Code. If the prenuptial agreement contains provisions that put one spouse in an extremely unfavorable position (e.g., completely depriving them of rights to marital property), these provisions may be declared invalid by the court at the request of the spouse.

Under Uzbek law, property acquired under a contract (e.g., real estate purchase, land plot, vehicle, etc.) becomes the property of the spouses from the moment of state registration or notarization of the contract. If the property was acquired under a contract during marriage but registered after divorce, the court will follow Article 23 of the Family Code. Conversely, if property was acquired before marriage but registered after marriage, the court will follow Article 25 of the Family Code unless it is proven that the property was purchased with joint funds of the future spouses.

Monetary and property contributions, including movable and immovable property, made with the spouses’ consent to the charter capital of a legal entity (e.g., LLC, JSC), are considered the property of the legal entity. The spouses’ joint property consists of their share (or shares) in the charter capital.

The court may grant a request by an interested spouse to transfer part of a share in the charter capital to them (i.e., divide the share) only if the relevant law or the legal entity’s charter allows transfer of shares (or parts of shares) to third parties. The interested spouse must also agree to assume the rights and obligations of a participant (founder) of the commercial organization as defined by law and the charter. Otherwise, the spouse may claim monetary compensation for their share. The value of the share is determined according to the law regulating that legal entity (e.g., the Law on LLCs or Law on Joint Stock Companies).

The court will also consider the spouses’ joint debts and obligations incurred in the interests of the family. Debts and expenses for the wedding ceremony or other marriage-related events are not considered.