International private law
International private law (IP) is the branch of law in each country that regulates the private legal system of international nature and includes areas such as family law, law of inheritance, contract law, labor law or damage claim issues. The criteria is that the issue has to prove connection to at least two countries; therefore we have Swedish, Belgian, Iranian and Russian IP etc. The main task for every country is to state which legal circumstances shall be tried according to another country’s law and under what foreign legal system the issue shall be tried.
IP does not solve the issue itself but decides under which country’s legal system the issue shall be solved.
Example
If a car registered in France is in a crash in Finland with a car registered in Italy where the French car is driven by a German citizen and the Italian car is driven by an Austrian citizen – which country’s law shall be put into practice?
- If Kevin, an American citizen, marry Lisa, a Swedish citizen, in France and settles down in Hong Kong – which country’s law is ruling in case of a divorce?
International law of procedure
International law of procedure (ILP) refer to every country’s law of procedures, for example if a court can raise a case with connection to another country or acknowledge and execute foreign judgements.
Example
- For Kevin and Lisa in the example above the question is: “In what country shall we file for divorce?”
Swedish court can raise the case only if:
- Both parties are Swedish citizens
- One of the parties is resident in Sweden in accordance with certain criterias laid down in applicable law
Kevin and Lisa that is still living in Hong Kong can most likely therefore not get a divorce in Sweden.
Principle of Residency
According to Swedish IP the so called Principle of Residency is the starting point when deciding what country’s law shall be applicable. This often leads to that the Swedish court when qualified to raise an IP case (according to the rules for ILP) will let the Principle of Residency rule which country’s law shall be applicable. This means that a Swedish court can use foreign law on a specific issue.
Example
- If a Swedish couple are resident abroad for more than two years, a Swedish court can in a case regarding for instance private property, let the rule of the country they are resident in be applicable. If Lasse and Lisa, who are Swedish citizens, are resident in Iran for more than two years the Swedish court must in principle let Iranian law (i.e. sharia) be applicable on questions regarding their property in a dispute in Sweden.
Before moving abroad it is important to find out the legal consequences. It might be necessary to draw up legal documentation, for instance agreements regarding what country’s law shall be applicable when it comes to financial issues between the couple, in order to avoid unexpected and problematic consequences of the move abroad. It is not always so that a Swedish citizen has the right to have his case solved by Swedish court in accordance with Swedish law.
Do you have any questions? You are welcome to contact me at tove.sjovall@magnussonlaw.com