Marriage settlements

All the property of a married couple is known as either marital property or private property.

Marriage property is generally shared equally between spouses upon divorce or death. However, private property of each spouse is not.

A marriage settlement is an agreement that married couples or couples to be married may make between them, the purpose of which is usually to ensure that certain properties are not exchanged upon divorce or death.

It may be stated in a marriage settlement that private property is, for example, excluded from the rules on matrimonial property until one of the married couple has died or if the married couple has a child together.

It may also be stated in a marriage settlement that the value of a private property, for example, when it is sold, will also be private property unless otherwise stated in the marriage settlement.

A court case shall not affect the ability of debt collectors to enforce claims. The creditors of one spouse may never collect the other's assets, neither separate nor matrimonial property.

The provisions of a marriage settlement may be amended or cancelled by a new marriage settlement.

Formal requirements

Strict requirements are made for the form of a marriage settlement. It must be in writing and the signing of the spouse or spouses must be certified by:

• notary

• lawyer

• or two witnesses present at the signing.

Witnesses sign their name and ID number on the marriage settlement upon signing. The certificate text must indicate that the document is a marriage settlement. The witnesses shall be legally competent and be competent to certify under the Law on Civil Procedure.

Councillors shall only take care of the registration and certification of marriage settlements as notaries, but if a married couple or married couple material requires assistance in the preparation of a marriage settlement, lawyers may be consulted for assistance.

Registration of marriage settlements

A marriage settlement is valid only if it is formally registered with the District Commissioner and must be registered in the jurisdiction where the spouse or the spouses have their legal domicile. If they are not domiciled in Iceland, the case shall be registered with the District Commissioner of the Capitol region.

If a marriage settlement concerns real estate, a vessel or an aircraft, the case must be registered on the relevant property in the district in which it is registered.

Marriage settlements must meet formal requirements of document registration.

The District Commissioner of West Iceland shall keeps a register of marriage settelements at the national level dating back to 2008 and may provide the parties concerned with information on marriage settlements they have concluded. The District Commissioner of West Iceland is also responsible for publishing notices on the registration of purchases in the Legal Gazette. It includes the names of parties, ID numbers, domicile and date of registration.

Marriage settlements are public data, so everyone can familiarise themselves with its content.

Cost

It costs ISK 9,700 to register a marriage settlement at the District Commissioner. Payment may be made at the location or by transferring the amount to the account of the relevent District Commissioner.

If the marriage settlement specifies the transfer of ownership of real estate or part of a real estate, stamp duty must be paid equal to 0.8% of the property valuation of the property.

If the marriage settlement is to be registered, a registration fee of ISK 2,700 must be paid.