Services and offer on High-Net-Worth Divorce
The Foundations and Trust Structures Under Austrian Law
Under the Austrian Private Foundations Act (Privatstiftungsgesetz – PSG), private foundations are commonly used to preserve and manage family wealth over the long term. Once assets are transferred into a private foundation, the founder generally relinquishes direct ownership and control over those assets. The transferred assets therefore no longer belong to the contributing spouse, but to the foundation itself, which is administered by independent members of the foundation board in accordance with the foundation’s purpose and governing documents. Unlike companies, foundations do not have owners, shareholders, or partners. Instead, they may have beneficiaries who are entitled to receive distributions or other benefits from the foundation’s assets or income.
Foundation Assets in Divorce Proceedings
Due to these unique structural characteristics, assets transferred to a foundation are generally not automatically included in the division of matrimonial assets during divorce proceedings, as the contributing spouse is no longer the legal owner of those assets. In practice, however, divorces involving foundations regularly raise the question of whether – and to what extent – foundation assets should nevertheless be taken into account in the division of property. Depending on the circumstances, it may be necessary to examine whether the foundation structure was used to circumvent matrimonial property rules or whether the foundation effectively serves the exclusive interests of one spouse.
A connection to a foundation may also be relevant in relation to post-marital maintenance claims, particularly where a spouse receives ongoing distributions or financial benefits from the foundation that may affect maintenance calculations.
The legal assessment of these issues is highly complex and, in many respects, has only been partially clarified by Austrian case law. In divorces involving foundations or trusts, it is therefore essential to carefully assess the rights, obligations, and potential claims of each spouse.
Our Special Expertise in Foundation Law
As a commercial law firm with a special focus on foundation law , we provide ongoing legal advice to approximately 35 Austrian foundations and trusts. This longstanding work has given us in-depth knowledge and many years of practical experience in this highly specialized area of law. This background allows us to effectively address the unique legal and economic issues that arise when foundations become relevant in divorce proceedings. Divorces involving foundations require more than general family law knowledge. Only lawyers who are familiar with foundation structures, governance mechanisms, and the relevant case law can realistically assess the associated legal and financial implications.
Our clients benefit from advice that combines both family law and foundation law perspectives in a strategic and commercially informed manner. GIBEL ZIRM Attorneys at Law supports and represents clients throughout all stages of divorce proceedings – both in and out of court – and ensures that their rights in relation to foundation structures and asset division are effectively protected.
