COMMUNITY PROPERTY IN THE DOMINICAN REPUBLIC

When a couple marries in the Dominican Republic without having previously signed a notarized marriage contract which elects a system of separation of property or some other marriage system provided by Dominican law, they are automatically governed by the law of community property. This is the most common marriage property system in the country and is characterized as the joint contribution by each spouse to the marriage and the family, regardless of the amount.

This contribution consists of (a) all furniture, money, bank accounts, vehicles, shares of stock, accounts receivable, etc. which each spouse possesses at the time of the marriage, or which may be acquired during the period of matrimony, including any inheritance or gifts; (b) real property acquired during the marriage, except by way of inheritance or gift; and (c) rents produced by all real property.

Thus, the only real property which lies outside the community property scheme is that property which a spouse owned before the marriage, or which the spouse acquires through inheritance or gift. He or she retains the right to sell, mortgage or exchange such property at his/her discretion. However, the fruits of the property are considered community property.

Also excluded from community property are personal items, such as clothes, tools used in a spouse's business or profession, family jewels, retirement pensions, royalties on copyrights or inventions, personal injury or damage awards, etc.

It should be borne in mind that when a spouse sells real belonging solely to him or her, in order to purchase other real estate, without obtaining the acknowledgment of the other spouse that the proceeds of the sale retain their character of sole ownership, then the sales proceeds and any new real estate purchased enter into the system of community property. The only exception is when the owner-spouse directly exchanges the real property for other real property, even if additional money has to be provided.