A share in increased value is the liquidation counterpart of a contribution that one spouse made to the acquisition, improvement or preservation of property belonging to the other spouse without receiving appropriate consideration. It differs from the participation claim, which does not require a direct contribution, and from equalization between the property groups of the same spouse. First, the owner of the property and the source of the contribution must be determined.
Which Contributions Are Investigated?
Paying a down payment from personal savings, investing inheritance money in the other spouse’s immovable property, or a substantial improvement that carries economic value are the main examples. Not every family expense turns into a contribution claim. Whether the payment was directed to the property, whether appropriate consideration was received and whether there was an intent to make a gift are examined separately. Article 227 of the Turkish Civil Code regulates this special right. [1]
Simplified Calculation Example
Let us consider, entirely hypothetically, that a contribution of 200,000 Turkish lira (TL) was made from the other spouse’s personal money to a property with an acquisition value of 1,000,000 TL. The contribution ratio is 20 percent. When the liquidation value is 5,000,000 TL, the basic ratio calculation gives 1,000,000 TL. This example rests on the assumption that there is no other debt, investment, provision or gift. The participation claim and the mutual account of the two spouses should be addressed separately.
What Happens if the Value Falls?
Article 227 of the Turkish Civil Code provides that, in the event of a loss of value, the initial contribution is taken as the basis. The same protection cannot be carried over to equalization without explanation; in equalization, a decrease may also be taken into account. If the property was disposed of earlier, the judge’s equitable assessment comes into play. For this reason, the formula “contribution ratio times today’s value” does not by itself resolve every possibility.
Defense of Return, Loan and Gift
The defendant may assert that the money was given as a gift or was returned earlier. The plaintiff, in turn, must explain the nature of the contribution with the bank movement, correspondence and the acquisition document. The relationship of the same amount with an independent claim for return should be established; where necessary, the primary and alternative claims should be written out clearly. Double collection is not possible.
Specific Questions to Put to the Report
On what date was the contribution made? What was the acquisition or investment value of the property on that date? From whose resources did the later improvement come? How did the calculation affect the other spouse’s residual value? Relying on a single percentage without answering these questions does not give a verifiable result.
What Is Equalization?
Equalization corrects the shifts in value that arise between the personal and acquired property groups belonging to the same spouse. For example, paying a debt belonging to personal property from acquired property, or using personal property in improving acquired property, may give rise to a claim in favor of the relevant group in the liquidation balance sheet. Equalization is not a claim between spouses; it is first an internal accounting operation between the two property groups of the same spouse.
How Are Article 227 and Article 230 of the Turkish Civil Code Calculated Together?
A share in increased value (contribution between spouses) and equalization (shift between the property groups of the same spouse) should not lead to the same payment being added twice under two different names. A simplified example of mixed financing:
- In a home bought in A’s name for 2,000,000 TL, let A’s inheritance money be 500,000 TL, B’s personal money 300,000 TL, and the loan/income within the regime 1,200,000 TL.
- Let the liquidation value of the home be 10,000,000 TL; let it be assumed that there is no actual loan debt to be taken into account on the cut-off date.
- A’s contribution of 500,000/2,000,000 = 25% from A’s own personal property to A’s own acquired property may create equalization in favor of the personal property group under Article 230 of the Turkish Civil Code. The simplified proportional value is 2,500,000 TL.
- B’s contribution of 300,000/2,000,000 = 15% to A’s property may, if the conditions are met, give rise to a share in increased value under Article 227 of the Turkish Civil Code. The simplified proportional value is 1,500,000 TL.
- On the assumption that there are no debts or other items, the value remaining in A’s acquired property balance sheet is 10,000,000 − 2,500,000 − 1,500,000 = 6,000,000 TL; B’s participation claim may be half of this, 3,000,000 TL. Together with B’s separate share in increased value of 1,500,000 TL, the total may reach 4,500,000 TL.
This simulation does not replace the court’s calculation. The loan debt, payment dates, the intent to make a gift, a decrease in value, construction investment and the two spouses’ counterclaims change the result. A high-inflation adjustment should also not be added to the nominal contribution and then multiplied once more by the current market value; the ratio method already carries the change in the value of the property.
How Is a Claim for Share in Increased Value Calculated?
If a spouse contributed to the acquisition, improvement or preservation of property belonging to the other spouse without receiving any consideration or appropriate consideration, and there is an increase in the value of the property at liquidation, that spouse may request a claim in proportion to his or her contribution. The contribution ratio is related to the value of the property on the date of the contribution; the claim is related to the liquidation value. If the value has decreased, the initial contribution value is preserved.
Example: If 500,000 TL from Spouse B’s personal inheritance was transferred to the price of a home bought in Spouse A’s name for 2,000,000 TL, the initial contribution ratio may be 25 percent. If the home is worth 8,000,000 TL at liquidation, the share in increased value may reach the level of 2,000,000 TL, assuming other conditions are constant. However, the loan, debts, additional investments and whether the contribution was truly without consideration change the result.
Frequently Asked Questions
In What Case Does a Contribution to the Other Spouse’s Property Turn into a Claim for Share in Increased Value?
A share in increased value may arise if a contribution was made to the acquisition, improvement or preservation of the other spouse’s property without appropriate consideration. The genuineness, amount and source of the contribution and whether there was an intent to make a gift are examined. Being married alone does not create this claim; in a participation claim, by contrast, proof of a direct material contribution is not required in the same way. The conditions of the two rights should not be confused.
Can I Sue for a Share in Increased Value While the Marriage Continues?
A share in increased value under the continuing regime of participation in acquired property is, as a rule, calculated at the liquidation stage. For this reason, a distinction is made between the regime continuing and ending, and the divorce not yet having become final. If there is a loan or an independent debt of return, the maturity of that claim may be different. It cannot be concluded that, because the marriage continues, none of the debts between the spouses can be claimed.
How Is the Present Equivalent of a Contribution to a Property Calculated?
The general approach is to determine the ratio of the contribution to the acquisition value of the property or the relevant investment value, and to apply this ratio to the liquidation value. If there are contributions on more than one date, each stage may be separated. In a loss of value, Article 227 contains a special provision that preserves the initial contribution; if the property was disposed of, an equitable assessment is made. This calculation should not be treated as identical with the decrease rule in equalization.
How Does the Share in Increased Value Calculation Affect the Amount of the Participation Claim?
The share in increased value may affect the debt element in the residual value calculation of the relevant property; for the creditor spouse as well, the property group is determined according to the source of the contribution. Thus, a share in increased value and a participation claim may exist together in one file. However, the same contribution amount cannot be collected twice under two different names. The calculation tables of both spouses should be checked together.
Because of a Contribution, Should a Share in Increased Value or an Unjust Enrichment Claim Be Requested?
It is determined whether the contribution rests on the special property regime relationship in the marriage and regime period or on an independent debt relationship. Not every event to which the special provisions can be applied can be characterized as unjust enrichment. A contribution outside the marriage, an invalid transaction or a purpose that did not materialize may require a different assessment. The choice of claim affects the statute of limitations, the court with subject-matter jurisdiction and the calculation method.
For a Contribution Made with My Personal Property, Can I Request Return and a Share in Increased Value Together or in the Alternative?
Payment cannot be received twice for the same economic contribution. Nevertheless, where legally possible, primary and alternative claims can be set up among return in kind based on ownership, an independent debt claim and a share in increased value. It should be written out clearly which result is sought in which event. A vague expression such as “all rights” does not take the place of explaining the order of alternative claims and the material facts.
What Distinguishes the Equalization Calculation from the Share in Increased Value Calculation?
In equalization, the relationship between the personal and acquired property groups of the same person is calculated. In a share in increased value, there is a contribution that one spouse made to the other spouse’s property without consideration or without appropriate consideration. Whose property it is lies at the center of the distinction. Moreover, the provisions applicable in a loss of value are not the same; a single formula cannot be applied unchanged to the two institutions.
Related Articles
- How Is Property Divided in Divorce? Guide to Property Regime Actions
- Is Inherited, Gifted and Family Property Divided in Divorce?
- How Is a Participation Claim Calculated? Debts, Equalization and Residual Value
- Contribution Claims in Marriages Before 2002: Proof, Calculation and Special Cases
- Property and Contribution Claims of Couples Who Live Together Without Marrying
This article is for general legal information. In a specific dispute, the dates of the events, the documents, the type of claim and the time limits are assessed together.
Sources and legal bases
- Law No. 4721, Turkish Civil Code (Türk Medeni Kanunu)
- Law No. 6098, Turkish Code of Obligations (Türk Borçlar Kanunu)