When doing entrepreneurship in Colombia, or in any other place for that matter, it is also important to keep in mind one’s life outside the actual work. Here I’m talking about matters of your personal life like where you live and whom you live with. Let’s discuss common law marriage in Colombia.
The Two Year Mark of The Common Law Marriage in Colombia
Something which I find to be the largest threat to the international entrepreneurship environment in Colombia is the cohabitation laws; if you have been living with a partner for two years or more then the finances of you and the other person will be merged, just like it would happen in a marriage.
Before moving forward I just want to throw in a quick disclaimer that I’m not a lawyer, so you should not take what I’m saying here as legal advice. Instead you should listen to it and then confirm whatever I say with a good and reliable lawyer on site.
Laws change, laws can be interpreted in various ways by different people. And there is of course also the risk that I myself have misunderstood some part of the judicial aspects concerning common law marriage in Colombia. If you have a different experience or you notice any errors in that which I’m bringing up feel free to make a comment below and I will look into it.
Now let’s move on. Your finances will be merged after these two years but there are a few things to consider:
- This only applies the intangible and financial assets, such as ownership of companies and liquid capital
- It does not apply physical assets like a house for example.
Taking Advantage of the Situation
That being said, there are many people who during the years have used the system. They do this by learning how the law works to the letter and then tried to obtain another person’s assets.
Let’s say that person A has a lot of capital or ownership in a company. That situation might play out as follows:
- A finds a partner, person B, and they live together as boyfriend and girlfriend for two years. B has got very little capital.
- After those two years person B then decides to leave the relationship.
- B then goes to a judge to utilize this law in order to get half of person A’s capital.
Note: This might turn out to be a valid legal claim even though they have never been married and person A has never signed any related documents!
Common Law Marriage in Colombia – Theory and Reality
The rabbit hole goes even deeper. Let us behold another hypothetical situation:
- Assume that person A and person B are not actually living together.
- But person B has been visiting person A during the weekends.
- Cases have ocurred where person B has been able to go to a judge claiming that they “actually” have been cohabitating. They do this by providing material such as photos and testimonies from neighbors who have seen that person B has been visiting during a large period of time.
In theory common law marriage in Colombia only applies to people who have been living together during two years. However, as explained above there have been cases where people have taken advantage of loopholes. I am unsure at this point if it applies both to capital that has been gained when the two people were living together only or if it also applies to all capital in general. I think it in theory regards the former. But here we also have the matter of “proof” in regards to what is what. That can be a hassle in any legal system.
In summary there is a risk that it can go either way depending on the interpretation of the law, the proof provided (real or fake) etc.
I talked to a lawyer about this matter who told me that many locals themselves are quite uneasy about common law marriage in Colombia since it entails a lot of risk. As a foreign entrepreneur in Colombia you might be concerned that you will meet a local who will take half the capital of your company in this sense. But it can also be the case that a person comes from abroad, gets together with a Colombian with liquid assets or shares in a Colombia and then does the same thing.
Is There a Good Solution In Order To Avoid Common Law Marriage in Colombia?
So what can you do? Well, you can do a prenup in this case (called “capitulaciónes”) which, according to the lawyer I talked to, will protect you against this situation. In my view this is however not very practical:
- Let’s say you have a gf/bf for one and a half years.
- You start thinking that you are starting to approach the two year mark.
- Should you then bring these papers to someone who is “just” your gf/bf or someone who you are only dating?
I don’t know about you, but in my view this seems pretty extreme. At the same time it is the only thing you can do in order to protect yourself against the risks of common law marriage in Colombia.
Final Words For The Aspiring Entrepreneur…
In conclusion this is one of the greatest dangers when it comes to entrepreneurship in Colombia in my view. Being an entrepreneur is all about taking risks (managed ones!). Said risks should be reasonable and it can be quite discouraging for an entrepreneur. That also applies to anyone who has taken the time and effort to build something. I also reckon that this might have a psychological impact.
People who have an idea of creating a company might decide not to put in all that much work. They might be reasoning that “I might lose what I have earned anyway if I’m together with someone”. It works as a disincentive for entrepreneurship. People who decide to create something want to have some reassurance that that it will last for them.
‘No Dar Paya’ as They Say in Colombia
I am not bringing up these aspects in order to discourage you from conducting business activities in Colombia, but I do think that it is very important to be aware of your surroundings; especially when it comes to common law marriage in Colombia. I also encourage you to not only take my advice in this article into account, but to also speak to a real family lawyer in the country if you decide to stay long term in order to stay safe.
It should be mentioned once again that I am not a lawyer of any kind. Hence, you discuss any action that you are about to take with an actual family lawyer first. Finally, as mentioned above, if you yourself have any alternate or conflicting information and/or experience in regards to this law then please leave a comment below.
Want Some Help So That You Don’t Fall Into a Common Law Marriage in Colombia?
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