Divorce is not only emotionally challenging—it can also be a bureaucratic headache, especially when it comes to dividing property in Portugal. A common question arises: after a divorce, who owns a house built on land that belongs solely to one spouse?
In Portugal, the law has now been clarified. Miguel Cunha Machado, founding partner of Dower Law Firm, explains that a recent ruling—Standardising Case Law Decision No. 9/2025, dated 10 September (Diário da República No. 174/2025, Series I)—directly addresses this situation. It concerns cases where a family home is built during the marriage by both spouses, under the regime of acquired community property, using shared funds or assets, on land owned exclusively by one spouse.
The ruling is clear: the Supreme Court of Justice (STJ) in Portugal has standardised case law, confirming that a house built in this way is considered a separate asset belonging to the spouse who owns the land. In other words, ownership of the land also extends to the house built on it.
“The other spouse does not acquire ownership of the house,” explains Miguel Cunha Machado. “Instead, they are entitled to financial compensation from the couple’s joint assets for their contribution to its construction.”
Previously, cases of “joint construction on separate property” caused considerable disagreement in Portuguese courts, but this ruling now provides clarity. The summary of the decision reads:
"A property (family home) built by two spouses, married under the regime of acquired community property, using shared funds or assets, on land owned by one spouse, constitutes a new asset that belongs to the landowner. The other spouse has a claim for compensation from the joint assets to restore financial balance."
In practical terms, this decision means that any couple in Portugal building a family home on one spouse’s land now knows the rules for dividing property if the marriage ends in divorce.
However, Miguel Cunha Machado warns that while the law is now clearer, there are still practical details that need to be considered on a case-by-case basis to fully understand each party’s rights in a potential future division.