Can one sell off or use matrimonial property as security for a loan without the other spouse’s consent or knowledge? - Justice Centres Uganda
marital property after divorce

Can one sell off or use matrimonial property as security for a loan without the other spouse’s consent or knowledge?

LAND & PROPERTY RIGHTS

Marriage is a contractual union between a man and a woman who decide to live together as husband and wife for the rest of their lives. Marital property is property that is acquired during marriage and that is subject to distribution or division at the time of marital dissolution.

The property to which each spouse should be entitled is that property which the parties chose to call home and which they jointly contribute to.

Contribution with regards to both properties registered in one spouse’s names and joint property is a key factor to be considered to assess whether property falls under matrimonial property. Justice Mwangusya observed that a spouse’s contribution to the acquisition of property may be direct where it is in monetary form or indirect where it is in non-monetary form[1].

Can one sell off or use matrimonial property as security for a loan without the other spouse’s consent or knowledge?

The short answer to this question is “NO”!

The land act provides for spousal consent to any transaction[1] in respect of family land as defined by the Act[2]. Spousal consent is an important aspect as it provides for the security of-occupancy for the spouse.

Further, Section 5 of the Mortgage Act provides that a mortgage of a matrimonial home is valid if a form used in applying for the mortgage is signed by the mortgagor and the spouse of the mortgagor living in the matrimonial home. This provision as well provides for spousal consent.

From the above provisions, one cannot sell off or mortgage matrimonial property without written consent of the other spouse.

Where property is on the threat of being sold off or pledged as security for a loan without the other spouse’s consent, such a spouse may lodge a spousal caveat on the certificate of title of such property.[3]

 JCU helps you to lodge the spousal caveat at the court

Further readings:

Does performance of domestic duties and services of a spouse amount to a contribution to matrimonial property?

Do cohabitees have any property rights arising from their relationships?

Can one bequeath a matrimonial home in a will where there is a surviving spouse?

You need some assistance?

JCU generally provides free legal services to the vulnerable communities through the following ways.

Sources:

[1] Section 39 of the Land Act Cap 227 (as Amended)

[2]  Section 38A (4) Ibid Family land means land on which is situated the ordinary residence of a family, the family derives sustenance and the family voluntarily calls home.

[3] Section 139 Registration of Titles Act Cap 230.

Further sources:

  1. Constitution of Uganda, 1995 
  2. Land Act, 1998 Cap 227 (as amended) Laws of Uganda
  3. Marriage Act Chapter 251 Laws of Uganda
  4. Divorce Act Chapter 249 Laws of Uganda
  5. Hindu Marriage and Divorce Act Chapter 250 Laws of Uganda
  6. Marriage and Divorce of the Mohammedans Act Chapter 252 Laws of Uganda
  7. Customary Marriage (Registration) Act Chapter 248 Laws of Uganda
  8. The Registration of Titles Act Chapter 230 Laws of Uganda
  9. JCU Marriage & Divorce folder (can be downloaded)
  10. Case Law pls. see citations
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