24.4.2017

Partial partition and distribution of an estate

Partitioning of marriage property and distribution of an estate are usually handled with one service from start to end.

Both services can also be handled as parts.

Partial partition and partial distribution of an estate can be expedient in some cases. For example in case when undividable property is going to be sold, but depending on market situation or any other reason which is protracting the liquidation, the property will be sold later. Partial partition and distribution procedures can be made with contract between the parties or with the help of an executor.

Partial partition

Community of marital property of the spouses will be dissolved in property division process.

Partition requires partition cause. Causes for partition are the death of the one spouse or filing for divorce in the court.

Practically partial partition is very rare. There are only two parties in divorce partition and normally the parties want to get their properties and assets settled quickly and outright.

There are also two parties in estate partition but at least the other party is an estate of a deceased person, which could include several distributees. In these cases there can raise a need to plan execution of partition and distribution of the estate also partially.

Partition could be done partially always when parties are unanimous about it. The executor of an estate can also perform the partition step by step. For example in disputed cases it is possible to separate undisputed parts out of contests and court proceedings.

Partial distribution of an estate

Partial distribution of an estate is also always possible with the consent of all the parties or by giving an assent to the executor.

A party of an estate has a right to forbid partial distribution by virtue of certain judicial prerequisites. The distribution is not allowed to be executed against the will of any party before estate inventory has been made and all the debts of the estate have been paid or collateral has been set up for them.

A party can also forbid the partition before bequeath, i.e. a part of assets defined in one’s will has been assigned or put under special administration. If the estate is administered by administrator or executor of the will, the distribution shall not be started before they tell the administration process has been completed (Inheritance Law 23:2§).

A few things should be born in mind in partial distribution of estate, for example that how it is going to affect to final distribution of estate. Partial distribution of estate carried out by executor will become valid after the contesting time is elapsed. Parties of distribution agreement can commit not to contest the partial distribution for any reasons. If there are not any definitions in the contract about the effects of the partial distribution to the final distribution, the contract stays valid as it is and possible inequalities of the partial distribution cannot be taken into account in the final distribution.

New assets after distribution

Partial partition and distribution of estate can also come into question because there will be new assets appearing after completing the procedure.

In these cases executed partition or distribution will be supplemented with new procedure. Normal partition and distribution norms shall be applied in these cases.

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