Participation in acquired property regime and equalization

The regime of participation in acquired property has been adopted as the statutory matrimonial property regime under the Turkish Civil Code No. 4721, which entered into force on January 1, 2002. This regime terminates upon the death of a spouse, a change to another property regime, divorce, annulment of the marriage, or a judicial decision for separation of property. Upon termination, the liquidation of assets between the spouses is initiated. During this process, legal mechanisms such as participation claims, compensation for increase in value, and equalization become applicable. This study initially outlines the fundamental principles of the regime of participation in acquired property and focuses specifically on the equalization mechanism, which plays a critical role in the liquidation phase. As regulated in Article 230 of the Turkish Civil Code, equalization aims to balance the financial transitions between a spouse's separate and acquired property, arising from inter-group contributions or debt payments. Through this mechanism, transfers from personal to acquired assets or vice versa are reflected equitably in the calculation of participation claims. The thesis explores the legal nature of equalization, calculation methods, distinctions between classical and variable equalization, treatment of disposed assets, and the implications of interest and statute of limitations, all supported by relevant jurisprudence of the Court of Cassation. Furthermore, the distinction between equalization and the compensation for increase in value is analyzed in detail, along with the judicial misinterpretations that often conflate the two. Accordingly, this study aims to clarify both the theoretical and practical issues surrounding the regime of participation in acquired property and the institution of equalization. Keywords: Acquired Property, Equalization, Matrimonial Property Regime, Personal Property,