NORWAY Law and Practice Contributed by: Sicilie Tveøy, Lars Christensen, Ramborg Elvebakk and Karen Margrethe Bugge, Advokatfirmaet Hjort AS
5. Wealth Disputes 5.1 Trends Driving Disputes
Overall, the main trends driving a rise in wealth-related disputes in Norway are: • increasingly complex family structures; • higher financial stakes due to significant growth in property and asset values; and • differing expectations among heirs. These factors contribute to more frequent disagree - ments and legal challenges in both divorce and inher - itance cases, as families navigate asset division, suc - cession planning and the interpretation of wills in a landscape marked by greater wealth and more varied family dynamics. 5.2 Mechanism for Compensation In case of court decisions, the legal system primarily aims to restore the rightful distribution of assets. If an heir successfully claims a will was invalid, the typical court decision is that the will is invalid, and it is up to the estate administrator to divide assets correctly. If a party has received too much inheritance, that party will be responsible for payment to the party that did not get their rightful portion. In general, Norway does not have punitive damages. 6. Roles and Responsibilities of Fiduciaries 6.1 Prevalence of Corporate Fiduciaries Corporate fiduciaries, such as trust companies or banks acting as trustees, are not commonly used in Norway because the legal concept of a trust does not exist in Norwegian law. In Norway, an estate must be settled after death, meaning all assets and debts of the deceased are identified and distributed. This can be done through a private or public settlement. A private settlement is possible if all heirs agree and at least one heir accepts responsibility for the deceased’s debts. This method is typically faster and less expensive, as it avoids court involvement and administrative fees. Most estates in Norway are settled privately.
In Norway, there has been a noticeable increase in disputes and court cases related to divorce settle - ments and inheritance matters. This trend is driven by several factors. Firstly, family structures have become more complex due to high divorce rates, frequent remarriages, and blended families with children from different relationships, which often leads to conflicts between surviving spouses and children from previous marriages. Secondly, the significant rise in property values over the past 30 years means that even modest homes in major cities are now worth several million NOK, resulting in larger estates and more at stake for both divorcing spouses and heirs. As a result, the potential for disagreement and litigation over asset division has grown, reflecting both changing social dynamics and increased financial stakes. Most disagreements between spouses in Norway during divorce settlements relate to skjevdeling , the right to exclude assets acquired before marriage from equal division. As people increasingly marry later and bring significant assets into the marriage, disputes often arise over which assets qualify for exclusion and how their value should be determined. Disagreements frequently arise in both divorce and inheritance situations over how to handle valuable assets such as the family home or cabin – some heirs may wish to retain the property, while others prefer to sell and divide the proceeds. Additional disputes often concern the treatment of gifts received by one heir, with others seeking compensation or adjustments. Contests over the validity or interpretation of wills are also common. Increasingly, as families become more international, complex questions of private interna - tional law emerge, including whether disputes can be brought before Norwegian courts and which country’s law should apply – Norwegian or foreign – adding fur - ther uncertainty and complexity to the resolution of these matters. There are few court cases involving the richest families in Norway; recently, there was a rare decision from the Court of Appeal regarding control over billions held in family-owned companies.
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