Budget Bill: changes to divorce at the will of one spouse and commercial lease agreements

María José Albacete

Analysis of Certain Relevant Aspects:

Article 481: amendment regarding divorce

This article of the “Bill” would replace the current paragraph 3 of Article 187 of the Civil Code (CC), relating to divorce at the sole will of one of the spouses.

The referred article of the CC regulates the possibility that one of the spouses, by their sole will, may request a divorce without the need for the consent of the other spouse. The judicial process initially required, in such cases, the holding of three hearings before the judge, spaced 60 days apart.

The amendment proposed by Article 481 of the Bill seeks to significantly simplify and shorten the timelines of this procedure, as it provides for the holding of a single hearing – instead of three – during which the situation of minor or legally incapacitated children will be resolved (regarding custody, visitation arrangements, and child support). Additionally, the judge will ask the spouse who initiated the process whether they still wish to divorce. If the petitioner confirms their intention to end the marriage, a judgment will be issued granting the divorce. If they fail to appear, the process will be considered abandoned.

The Bill does not modify paragraph 2 of Article 187, which regulates divorce by mutual consent, a process that is even lengthier than divorce at the sole will of one spouse.

Article 681: lease of commercial premises

Article 102 of Decree-Law No. 14.219 (on urban and suburban leases, which protects the tenant and excludes the application of free contracting regulated by the CC) – currently in force – establishes that:

“This law shall apply to properties, regardless of their location, rented for housing, industry, commerce, or other purposes (…).”

“Excluded from the provisions of this law, except for those contained in Chapter VII and Section I of Chapter VIII, are lease contracts relating to properties built after June 2, 1968 (…).”

Thus, under the amendments introduced by the budget law, leases for industrial or commercial purposes of properties built prior to 1968 will be governed by this Law – notwithstanding certain exceptions regulated by its Article 28 – which has several implications, such as:

Security: Regulated by Articles 38 and 39 of the aforementioned Law, which establish as options either a deposit at the Banco Hipotecario del Uruguay or a personal surety.

Price: Must be in national currency with a specific adjustment regime.

Minimum Term: Five years. If a shorter term is agreed upon, the remaining time needed to complete the legal term will benefit exclusively the tenant. This means the tenant could remain for up to five years even if the contract stipulated only two.

Through Article 681, the Bill proposes to exclude from the application of Law 14.219 all leases for industrial and commercial purposes, or any other purpose not related to housing, regardless of the date of the construction permit.

It also expressly provides that, in contracts with such purposes, in addition to the guarantees provided for in Decree-Law No. 14.219, guarantees such as surety bonds or bank guarantees, surety insurance policies, and insurance policies for a fixed amount in either national or foreign currency may also be established.

Regarding leases, but in a different matter, Article 680 of the Bill proposes a reform to Article 1782 of the CC, extending the maximum contract term.