Division of Assets Located Abroad in Brazilian Divorce Proceedings

Division of Assets Located Abroad in Brazilian Divorce Proceedings

In Brazil, marriage can be contracted under one of the following matrimonial regimes: partial community of property, full community of property, separate property, or final participation in acquisitions. In the absence of choice, the partial community regime is applied by law.

A common issue in divorce proceedings arises when one or both have acquired assets located abroad: which country has jurisdiction to decide on the division of such assets — Brazil or the country where the assets are situated?

The Superior Court of Justice (STJ) has already addressed this matter. In Special Appeal No. 1.552.913/RJ, Justice Maria Isabel Gallotti stated that, although the principle of sovereignty prevents the Brazilian Judiciary from directly enforcing rights over foreign-based assets, it does not preclude Brazilian courts from ruling on the spouses’ entitlements to such assets within divorce proceedings in Brazil, based on the matrimonial regime chosen in the country, even if the judgment has patrimonial effects abroad.

Furthermore, the practical impossibility of enforcing a Brazilian court decision in a foreign jurisdiction does not bar the division of assets, as the court may determine financial compensation or adjust the allocation of other assets (Special Appeal No. 1.912.255/SP, Justice Nancy Andrighi).

Therefore, real estate located abroad, profits from foreign companies, and other overseas assets may be included in the division of marital property during divorce proceedings in Brazil, provided they are subject to the applicable matrimonial regime.

If you or your spouse owns assets abroad and are undergoing a divorce, seek the assistance of a lawyer with experience in international family law and asset division.