A common scenario arises when a child needs to dispose of certain property. Disposal can take various forms, such as voluntary distribution, sale, or exchange. Depending on the type of property involved, there may be a legal requirement for the district court to grant permission for the transaction.
Applicability
The requirement for court permission applies only to specific categories of assets and rights, including:
- Real estate;
- Movable property through formal transactions (e.g., sale of a vehicle);
- Deposits;
- Transactions involving securities belonging to the child.
It is important to note that permission cannot be sought for donations, waivers of rights, or loans. Such transactions, when carried out by a child, are inherently void. Permission cannot be granted for them as they are presumed not to be in the child’s interest — a mandatory condition for obtaining court approval. Exceptionally, the court may allow the encumbrance of the child’s property through pledges or mortgages if there is “clear benefit to the child” or in extraordinary family circumstances.
Procedure
The procedure for obtaining permission involves submitting an application to the district court based on the child’s current address. The application must include a detailed description of the assets intended for disposal. Special care should be taken in describing real estate since transactions involving such property must be registered in the Property Register.
The exact transaction for which approval is sought must be described. If a preliminary agreement has been signed before filing the application, all essential elements of that agreement must be presented to the court. The price of the transaction must be specified. For example, in the case of a vehicle sale, an appraisal of the insurance value of the car should be prepared. Vague phrases such as “whatever price is deemed appropriate” are unacceptable, as the court must assess the specific transaction’s benefit.
Finally, the application must justify the child’s interest in completing the transaction. Detailed reasoning should be provided to support the assertion that the disposal will not harm the child’s financial standing and is not detrimental in general.
Court Actions in Reviewing the Application
The district court reviews the application in its entirety and assesses the benefit of the proposed disposal from the perspective of the minor’s or underage individual’s interest. The court may issue instructions to clarify the application or request additional information. It may also seek an opinion from the Social Assistance Directorate.
