LOCAL attorneys provide comprehensive services in relation to marriage and cohabitation issues. Our services include the preparation of pre-nuptial and nuptial agreements, advice on divorce and termination of cohabitation, financial transfer agreements and other related services.

For many, divorce can be one of their most difficult struggles. It is important to seek professional advice and assistance, as there are great interests at stake and it is imperative that things are handled correctly.

Below you can find practical information regarding divorce and separation.

Commercial matter

A contract is a formal written contract that is only made between two persons who are or have been married. It may be desirable to finalize a business agreement at the beginning of a marriage to ensure that, in the event of a divorce, each can retain the values ​​they bring to the marriage.

Although commercial agreements are mainly drawn up at the beginning of a marriage, it is permitted to enter into commercial agreements after people have entered into marriage. However, the cost of such transactions can be higher, if the ownership of registered real estate has to be changed. Agreements are often made between people who are getting married if there is a significant difference in the assets/debts of the people at the beginning of the marriage. Transactions are registered in a special transaction book at the magistrate’s office and are thus an official document.

Divorce

When people have been married, but for some reason want to end the marriage, they can request a divorce. In exceptional cases, it is possible to request a direct legal divorce.

If a couple agrees to dissolve the marriage, they can go to a magistrate, but otherwise they have to go directly to the courts.

When a couple divorces, they first ask for a separation and one of the parties has to move their legal domicile to a new place. That party is given time to look for a new home, but if it takes longer than what can be considered normal, the effects of a separation will cease.

The legal effect of a separation is that the parties cease to be mutually responsible for the other’s obligations, such as for taxes and other public charges, and mutual inheritance rights cease to exist. However, there the parties continue to have aa mutual obligation to provide support until a legal divorce has been granted.

The effect of a separation ceases if a couple resumes cohabitation, unless it is only a brief attempt to revive the marriage. Separation is also cancelled if the parties continue to live together beyond the time which can be considered reasonable to acquire a new home.

A separation will have to formalised into a legal divorce before either party is permitted to remarry.

All legal ties between the couple have been severed and either party is allowed to remarry.

If the parties agree to seek a divorce, an appointment must be made with the District Commissioner in the district where the couple is domiciled. Couples can attend together or separately.

Couples have to deliver to the District Commissioner a certificate of reconciliation, a property division agreement, and a custody and visitation agreement if the couple have children under the age of 18.

The District Commissioner issues a divorce permit, and after six months either party can request a legal divorce.

If a couple in not in an agreement to seek a divorce, it is not possible to apply for a divorce to the District Commissioner . In such cases it is necessary to obtain a legal divorce before the district court.

In exceptional cases, a spouses can request a legal divorce without first obtaining a separation. This is a case where the other spouse confesses to adultery, has subjected the other spouse to physical or sexual assault or has practiced bigamy. The same applies if a couple has broken up and are not longer living together, then either of them can demand a legal divorce when the breakup has lasted for two years.

In order to be able to seek a direct legal divorce, both parties must agree, otherwise the legal divorce must go before the courts.

Conciliation certificate

When a married couple has children under the age of 18, they must undergo reconciliation, either before the District Commissioner , a judge, or by a representative of a religious association.

The reconciliation must have taken place in the last six months before a divorce was requested.

Children of couples seeking divorce

If a couple has children under the age of 18, they must decided if the custody shall be joint and shared between the parents or if either one of the parents shall have custody The same parent does not need to have custody of all children as they can be split up. Couples with children, seeking a divorce, are required to make a custody agreement If there is a disagreement over custody, it must be resolved through the courts.

Additionally, child support must be determined for each child. Parents have a legal obligation to jointly support their children. The parent who does not have custody is required to pay child support. The Social Insurance Administration is responsible for disbursing standard child support, so the custodial parent can approach the Administration for payment. However, if the agreed-upon child support exceeds the standard amount, the custodial parent must collect the additional support directly from the other parent, as the Social Insurance Administration does not guarantee payments above the standard support amount.

Once the custody agreement has been confirmed by the District Commissioner or the courts, support from the Social Insurance Administration can be sought.

It is not mandatory to establish visitation arrangements with the non-custodial parent at the time of the separation although it is recommended.

A couple’s finances

In order to finalise a divorce, a written property division agreement must be submitted, and the agreement must be confirmed by the District Commissioner.

If couple seeking divorce has no assets, they can make a statement to that effect, which is then entered in the District Commissioner’s records, and then they do not need to submit property division agreement.

If a spouses does not agree on the distribution of the property, they have to submit their case before the district court, and request a public administration of their estate . The District Commissioner can grant a divorce license upon the district court’s ruling that a public administration of their estate shall take place.

Spousal support

Spouses are obligated to support each other, therefore they must decide if one spouse should pay alimony to the other spouse . The mutual support obligation ceases in the event of a legal divorce.

If there is a dispute between spouses, regarding the payment of alimony, the District Commissioner can make a ruling, which can be appealed to the Ministry of Justice.

Dissolution of cohabitation

If cohabiting partners do not have joint children, they are not required to formalise a separation before the District Commissioner. Cohabiting partners simply notify the National Registry of Iceland of their change of residence, which then officially confirms the end of cohabitation.

If cohabiting partners share joint assets or debt, they are free to decide independently how to divide those assets and debt, between themselves.

When cohabiting partners have joint children, they are obliged to decide how custody of the children will be handled, and whether the custody shall be joint and shared between the parents or if either one of the parents shall have custody. Then they must also decide how child support payments with a child or children should be handled. If the parties agree on how matters pertaining to custody should be handled, they can finalise the custody agreement before the District Commissioner, otherwise it must be resolved through the courts.

When registering a dissolution of cohabitation with the District Commissioner, the partners must submit the birth certificate of the joint children. Birth certificates can be obtained from  the National Register of Iceland.

If the parties agree on the custody of the children and child support payments, the District Commissioner issues a document confirming the dissolution of cohabitation.

If cohabiting partners have children younger than 18 years old, they must decide if the custody shall be joint and shared between the parents or if either one of the parents shall have custody. The same parent does not need to have custody of all children as they can be split up. If there is a dispute over custody, it must be resolved through the courts.

Additionally, child support arrangements for each child must be established. Parents have a legal obligation to jointly support their children. The parent who does not have custody is required to pay child support. The Social Insurance Administration is responsible for paying basic child support, and the custodial parent can apply to the administration for these payments. However, if the child support amount is set higher than the basic rate, the custodial parent must collect the excess amount directly from the non-custodial parent, as the Social Insurance Administration only guarantees payments at the basic rate.

Once the custody agreement has been confirmed by either the District Commissioner or the courts, the custodial parent may approach the Social Insurance Administration for support payments.

It is not required to finalise visitation arrangements for the non-custodial parent at the time of the separation of cohabitation, although it is recommended.

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