Protecting Family Assets from OSVČ Business Risks Under Czech Law

Mgr. Vendula Růžková, LL.M., MBA
Mgr. Vendula Růžková, LL.M., MBA
2.6.2026 | ARROWS law firm

Doing business as a self-employed individual (OSVČ) opens up broad economic opportunities, but it also generates specific legal risks that directly affect your personal life. A key pitfall for self-employed individuals is the lack of separation between business assets and personal assets. Without an appropriate adjustment of the matrimonial property regime under Czech law, you risk that any business setbacks or unforeseen penalties will affect all family assets, including real estate, savings, or future investments. In this text, we will discuss the key legal aspects of protecting family wealth and present a safe approach for effectively isolating it from business risks.

Risks of the statutory community property regime when an individual conducts business

If spouses have not expressed their autonomous will and have not entered into a marital agreement, their property is subject to the statutory community property regime (SJM) regulated in Section 708 et seq. of the Czech Civil Code. Community property includes everything acquired by one spouse or both spouses jointly during the marriage, except for the exhaustively listed statutory exceptions.

For a self-employed individual, this situation represents a latent threat to the family’s economic stability. As a self-employed person (OSVČ), you are liable for your obligations without limitation. From a procedural perspective, a key provision of the Czech Code of Civil Procedure allows enforcement officers, within enforcement proceedings, to levy execution against assets forming part of the community property for debts incurred during the marriage by only one spouse in connection with their business activities.

In practice, this means that creditors may legitimately satisfy their claims from any assets that form part of the community property. At risk are not only movable and immovable assets, but also funds in bank accounts, securities, units in investment funds, or equity interests in other companies (e.g., in an s.r.o., where the other spouse is a shareholder).

Risk of impact on income from separate property

By law, community property also includes profit and income generated by property that belongs exclusively to one spouse (e.g., rental income from real estate acquired before the marriage or by inheritance, or dividend payments). If the other, non-business spouse generates independent income or holds profitable separate property, these cash flows become part of the community property. To the extent of one half, they may then be allocated to satisfy creditors’ claims arising from the business activities of the risk-taking spouse.

Why narrowing community property only in relation to business constitutes insufficient legal protection

In business practice, there is often an effort to address this situation by partially modifying the community property, specifically by narrowing it only with respect to assets used for business. From the perspective of corporate and family law under Czech legislation, however, this solution is ineffective and creates only an illusory sense of security.

If community property is narrowed exclusively in relation to business, all other existing and future family assets – such as real estate, family savings, vehicles, or an investment portfolio – remain within the community property regime. If enforceable debts arise from business activities, creditors may still levy execution against this remaining community property.

Moreover, narrowing community property is tied to specific asset items precisely defined in time. There is a permanent risk that newly acquired assets, future reinvestments, or incidental income will not be properly classified in the modification agreement and will automatically fall back under the statutory community property regime. This makes the entire asset-protection structure unclear and vulnerable.

Systemic solution: Separate property regime and subsequent property settlement

To achieve absolute isolation of family assets from business risks, it is necessary to transform the spouses’ property structure by agreeing on a separate property regime. By taking this step, the principle of joint acquisition of property is completely abolished going forward—each spouse becomes the exclusive owner of assets they acquire themselves and is liable solely for their own debts.

Implementing this solution requires two consecutive legal steps:

1. Change of the matrimonial property regime (for the future): Drawing up a notarial deed by which the spouses establish a contractual separate property regime. At this moment, the future property regime is legally separated.

2. Settlement of the existing community property: Entering into a comprehensive agreement on the settlement of property that, up to the moment of the modification, formed part of the community property. Under this agreement, assets are distributed in a targeted manner so that key family property (real estate, liquid savings, long-term investments) is transferred into the exclusive ownership of the non-business spouse.

This process involves complex procedural details and related legal implications. If the sequence of steps is disrupted or if the settlement agreement suffers from substantive defects, there is a risk that these acts will be invalid. The attorneys at ARROWS advokátní kancelář have extensive expertise in this area and ensure flawless implementation of the entire property transfer.

Legal limits: Relative ineffectiveness and creditors’ avoidance actions

When restructuring family assets, it is necessary to take into account the time factor and the protection of third parties. If an agreement on separation of property and the subsequent transfer of assets to the non-business spouse were concluded at a time when the business individual already has outstanding unpaid obligations or is facing litigation, such conduct carries a high level of risk.

Under Section 589 et seq. of the Czech Civil Code, creditors may seek a declaration that this legal act is ineffective against them (so-called relative ineffectiveness). If the court upholds the creditor’s avoidance action, the creditor may satisfy its claim from assets that, although formally already belong to the other spouse, as if no transfer had taken place. The entire asset-protection process should therefore be implemented as a preventive measure at a time when the entrepreneur’s economic situation is stable.

Potential issues

How ARROWS helps (office@arws.cz)

Enforcement against family assets for business debts: A creditor initiates enforcement against joint property within the community property regime (accounts, real estate).

Setting up a contractual regime: We will design and implement an optimal structure for separating assets to achieve full isolation of private assets.

Unlimited liability of a self-employed individual: The entrepreneur is liable for obligations with all current and future assets.

Legal and tax advice: We will assess the risks and, where appropriate, arrange the transformation of the individual’s business into a limited liability company (s.r.o.).

Risk of relative ineffectiveness (avoidance actions): Creditors may challenge asset transfers on the grounds that their claims were prejudiced.

Expert legal opinions: We will conduct a legal audit of liabilities and structure the transaction so that it cannot be successfully challenged ex post.

Overlooking future investments and profit reinvestment: Newly acquired assets may, due to defective contractual wording, fall into the community property regime.

Long-term external legal counsel: We can continuously supervise your investment steps and ensure the safe acquisition of new assets.

Models for implementing property settlement in legal practice

When implementing a change to the marital property regime and settling existing assets, spouses have various procedural options for formally documenting the agreement. Under Czech law, the establishment of a separate property regime (a change for the future) strictly requires the form of a notarial deed.

However, for the follow-up step—settlement of property accumulated up to the moment of signing this change—two legitimate routes are available:

  • A comprehensive solution with a notary: Within one notarial deed (or consecutive notarial deeds), the notary can record both the modification of the community property regime for the future and the settlement of existing real and movable property.
  • A combined solution involving an attorney: With the notary, only the clean cancellation or change of the marital property regime for the future is agreed. The subsequent detailed agreement on the settlement of the existing joint property (real estate, savings, investment instruments, or business interests) is then concluded by the spouses in the form of a standard contract prepared by an attorney. 

This combined approach makes it possible to reflect specific business circumstances in the text of the standard contract, include detailed arrangements for the management of future income, and implement individually tailored protection mechanisms that correspond to the client’s particular business environment.

Final summary

Running a business as an individual without adequate protection of the family background represents a permanent allocation of high risk to all joint assets. The statutory community property regime provides neither the non-business spouse nor family assets with any protection against creditors. Merely narrowing the community property regime to exclude business activity is, from a legal perspective, only a half-measure that leaves key assets at risk. The systemic solution is a transition to a contractual separate property regime combined with a precise property settlement.

However, this area is highly complex, interconnected with tax regulations, and involves the risk of the concept of relative ineffectiveness. If you want to eliminate the risk of invalid legal acts, disputes with creditors, or procedural errors, it is safer to entrust the entire transaction to specialists. The lawyers at ARROWS, a Prague-based law firm, have extensive experience in protecting entrepreneurs’ assets and will propose a legally robust solution for you. For an individual consultation, contact us at office@arws.cz.

Frequently asked questions on How to protect family assets from risky business activities

1. If financial savings or investments are held in a bank account registered exclusively in the name of the non-business spouse, are they safe from my creditors?

No. The fact whose name a bank or investment account is registered in does not affect ownership of the funds. If the funds or investments were acquired during the marriage from business proceeds or wages, they form part of the community property. Under Czech enforcement procedure rules, the enforcement officer is entitled to levy execution also against the account of the debtor’s spouse. To protect these savings, it is necessary to contractually separate the spouses’ property and properly settle the assets. Our attorneys in Prague at ARROWS can assist you with this process—contact us at office@arws.cz.

2. Is it possible to include securities, cryptocurrencies, or business interests in companies in the property settlement agreement?

Yes, the settlement of the existing community property may cover any asset with economic value. The agreement can precisely specify which shares, corporate interests, or digital assets will be transferred into the exclusive ownership of the non-business partner. Given the procedural complexity and the need for correct valuation of these specific instruments, we recommend using expert support. The experts at ARROWS, a Prague-based law firm, will prepare complete documentation for you—email us at office@arws.cz.

3. What are the tax implications if, as part of the settlement after separating property, we transfer high-value assets to the other spouse?

A community property settlement agreement that changes ownership relationships to existing assets is generally exempt from income tax during the marriage (it is a transformation of joint ownership into exclusive ownership). However, for specific asset types or in the case of any financial equalisation (the so-called settlement share), a detailed tax analysis is necessary to avoid unintended tax exposure. In this context, legal and tax advice can be provided by the specialists at ARROWS, a Prague-based law firm, at office@arws.cz.

4. Can a contractual separation of property prevent enforcement against assets for debts that arose before this notarial deed was executed?

A change to the marital property regime generally takes effect for the future. Debts accumulated by the self-employed individual before the notarial deed on separation of property was executed may still be satisfied by creditors from the assets that constituted the community property up to that time. For this reason, prevention is key—separation of property must be implemented before any default or incurrence of obligations occurs. To assess the timing and legal risks of your situation, contact ARROWS, a Prague-based law firm, at office@arws.cz.

Notice: The information contained in this article is of a general informational nature only and is intended to provide basic guidance on the topic based on the legal status as of 2026. Although we take the utmost care to ensure accuracy, legal regulations and their interpretation evolve over time. We are ARROWS advokátní kancelář, an entity registered with the Czech Bar Association (our supervisory authority), and for maximum client protection we maintain professional liability insurance with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS advokátní kancelář directly (office@arws.cz). We accept no liability for any damages arising from the independent use of the information in this article without prior individual legal consultation.

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