The dissolution of Czechoslovakia, often called the "Velvet Divorce," marked a peaceful end to the country's unity on December 31, 1992, splitting the federation into two independent states: the Czech Republic and Slovakia. This event followed the "Velvet Revolution" of 1989, which had peacefully transitioned Czechoslovakia from communist rule to democracy. Although many citizens in both republics hoped to maintain a unified state, political pressures and differing economic and nationalist ambitions drove the split.
In 1992, the Slovak parliament declared independence, and Klaus and Mečiar agreed to proceed with the dissolution. The Federal Assembly passed acts in November 1992 that finalized the division, effective on December 31. Property, assets, and federal resources were divided, generally in a 2:1 ratio reflecting the Czech-to-Slovak population balance. The Czechoslovak koruna initially served as the shared currency, but economic concerns led both countries to issue separate currencies within months.
The division affected both economies, especially initially, as traditional business ties needed to adjust to international trade policies. However, both nations saw steady growth, and by the mid-2000s, Slovakia’s economy even outpaced the Czech Republic's, partially due to economic reforms and Slovakia's adoption of the euro in 2009. The Czech Republic maintained its koruna, though it is expected to adopt the euro in the future.
After the split, each republic honored Czechoslovakia’s international treaties and joined the United Nations as separate entities in 1993. Citizenship was determined by residency, place of birth, and other criteria, with individuals given the option to apply for citizenship in the other country. Cross-border movement remained open, and both countries joined the EU in 2004 and the Schengen Area in 2007, further facilitating free movement and trade.
The Velvet Divorce stands out as a peaceful, cooperative model of separation, contrasting with the violent breakups in other post-communist states. While each country faced economic challenges initially, both benefited from a period of rapid growth, EU integration, and political stability. This separation allowed Slovakia and the Czech Republic to develop distinct identities while maintaining close ties and cooperation through European partnerships and the Visegrád Group.