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Sharon Burkill
However, the prenuptial/postnuptial comparison and subsequent consequences on divorce is only one part of the picture. What is perhaps less well known or considered is the impact that a matrimonial regime can have in the event of the death of a spouse. Choosing the right matrimonial regime is incredibly important from an inheritance and tax planning perspective.
In this series of blogs, Sophie Voelcker (Partner in Private Client) and Colleen Hall (Associate in Family) discuss the various aspects that you should consider from a family and inheritance or succession perspective when deciding which matrimonial regime to elect (or whether to create another type of agreement), including what will happen by default if you do not select any. They will be joined by Flora Cassoudesalle (Avocat at bwg associés, Paris) who will provide helpful input from a French perspective.
As a starting point, we have set out below the most common matrimonial regimes and the general principles behind them in terms of assets and liabilities.
Regime |
Pre-acquired |
Assets acquired during marriage |
Liabilities pre-marriage |
Liabilities post-marriage? |
---|---|---|---|---|
Communauté réduite aux acquets (default)
|
Regarded as separate | Regarded as joint (except if purchased with funds from pre-acquired assets or parental gifts, for example) | Regarded as separate | Regarded as joint |
Communauté universelle | Regarded as joint | Regarded as joint | Regarded as joint | Regarded as joint |
Séparation de biens | Regarded as separate | Regarded as separate (except if bought together, and then owned in proportion to the amount put in by each spouse) |
Regarded as separate |
Regarded as separate |
Participation aux acquets | Regarded as separate during the marriage | Regarded as joint (in the sense that the increase in value between the beginning and end of the marriage is divided in two) | Regarded as separate | Regarded as joint |
Each of these regimes will have resulting consequences in terms of divorce, succession and tax, and the above is only an introductory guide. There are a multitude of ways in which spouses can agree to deal with their assets, and so the flexibility remains if spouses wish to create a more personal arrangement. We will delve further into these topics in our upcoming blogs over the coming months.
The overarching advice, however, is simple – be sure to seek legal and accountancy advice (in all relevant countries), particularly if your financial situation is in any way complex. We hope to provide you with a handy overview so that you know the right questions to ask, and of whom. In the next blog, we will be taking a closer look at inheritance.
If you have any questions regarding this blog, please contact our Anglo-French team.
Sophie is a partner in Kingsley Napley's Private Client team. Sophie focuses on advice to UK resident and/or domiciled clients regarding wealth structuring, estate planning and trusts, with a particular interest in any cross-border taxation and succession issues for clients with international assets or who have relocated abroad.
Colleen qualified as an Associate in the Family team in 2017. She is a fluent French speaker, and advises on all aspects of family law issues.
The English Channel, La Manche, is only 350 miles long, separating England from France. When looking at divorce principles however, we have historically been oceans apart from France, with significant differences in outcome depending whether the proceedings have taken place in France or in England. French law is based on a civil code, with divorce law applying property regimes to the division of assets, which is often incompatible with the common law, discretionary system in England. In the early years of my Anglo-French practice, French couples living in England were often taken aback to learn that the property regime they chose when they signed their French marriage contract might not be applied by English judges if they divorced in England.
London has long been a popular city for French expats, and despite the reported drop post- Brexit, is still home to a reported 100,000 French nationals many of whom applied for settled status. There are 9 bilingual French schools in London and with the Eurotunnel celebrating 30 years of operation, London remains an attractive residence for French professionals.
I am regularly asked to advise French and international couples on the protective agreements available to them before they marry. They are often surprised to learn that it isn’t possible to draft a global prenuptial agreement which would be enforceable throughout the world, wherever the couple move to in the future.
As so many families that we advise now live across several countries, and particularly in France, we regularly get asked whether Lasting Powers of Attorney made in the UK and registered with the Office of the Public Guardian can be recognised in France.
It’s official: Les Jeux Olympiques have returned to Paris after 100 years. Paris is one of only three cities, along with London and Los Angeles, to have hosted the Olympic Games three times. After two weeks of sport, the Anglo-French rivalry is very much alive and almost too close to call; at the time of publication France are just ahead with 53 medals (including 14 gold), while Team GB has 51 medals (including 13 gold).
Perhaps the most common scenario that springs to mind when thinking of the impact of a matrimonial regime or nuptial agreement is in the event of divorce. The election of a matrimonial regime (if applicable) or creation of a bespoke nuptial agreement can have far-reaching consequences if a couple decides to separate later down the line. Anglo-French couples should certainly make themselves aware of the starkly different consequences that each option brings.
Immigration has long been a part of Britain’s history, however the concept of documenting and restricting certain migrants is relatively new - having first been introduced at the turn of the 20th Century.
Le Pacte Civil de Solidarité (PACS) est un contrat conclu entre deux adultes non mariées, de même sexe ou de sexe opposé, qui leur permet d'organiser leur vie commune. L'enregistrement de l'union civile entre les conjoints se fait à la mairie. Le contrat de PACS peut également être rédigé par un notaire afin que les clauses de leur contrat soient adaptées à leur situation familiale et financière.
The importance of inheritance planning cannot be underestimated – failure to consider the succession and tax consequences that arise on the death of a spouse can lead to significant financial implications, at a time when emotions could already be running at an all-time high. Particularly in situations where there is a large amount of familial wealth, the earlier this is considered, the better, and marriage (and the election or not of a matrimonial regime, or creation of a bespoke nuptial agreement) is a good time to take stock and ensure your family is protected for the future.
The concept of matrimonial regimes has become increasingly well known in England, having been a stalwart of the French marriage process for centuries. International clients and those with Anglo French connections are asking the right questions about French marriage contracts versus English prenuptial or postnuptial agreements more frequently, being more aware of the significant differences between the two and also the need for cross-border legal advice to ensure their interests are protected should they later choose to divorce.
The French Pacte Civil de Solidarité (PACS) is a contract entered into by two unmarried adults, of the same or opposite sex, which allows them to plan their life together. Registration of the civil union between the partners takes place at the town hall. The PACS contract can also be drafted by a notary so that the clauses of their contract are bespoke to their family and financial situation.
The question of whether to seek a divorce is one over which many people agonise. However, for divorcing couples with international connections, the associated questions of when and in which country to get divorced are also extremely important considerations, and ones which can have serious repercussions for the outcome.
Les couples français vivant en Angleterre sont souvent surpris d'apprendre que le régime matrimonial français qu'ils ont choisi lors de la signature de leur contrat de mariage français pourrait ne pas être appliqué par les juges anglais s'ils divorcent en Angleterre.
French couples living in England are often taken aback to learn that the French matrimonial regime they chose when they signed their French marriage contract might not be applied by English judges if they divorce in England.
En tant que citoyens de l'UE, les français bénéficient de la libre circulation des personnes au sein de l'UE, ce qui signifie qu'ils ont le droit de vivre et de travailler dans n'importe quel État membre sans avoir à demander de visa. Maintenant que le Royaume-Uni a quitté l'UE, ce droit ne s'applique plus aux citoyens de l'UE qui viennent au Royaume-Uni.
As EU nationals, French nationals enjoy free movement within the EU which means that they have the right to live and work in any member states without applying for a visa. Now that the UK has left the EU, this right no longer applies to EU nationals coming to the UK.
Cela me rappelle le tableau du "Jugement de Paris", qui décrit le moment où d'éminents critiques de vin français, lors d'un test de dégustation, se sont rendus compte qu'ils avaient mieux classé les vins californiens que les vins français.
La requête en divorce a été déposée. L’on peut à présent se concentrer sur l’un des deux autres éléments essentiels d’une séparation, à savoir l’aspect financier. La procédure sur les mesures financières et la décision finale sont un facteur décisif dans le choix du lieu du divorce. De nombreux clients supposent que les procédures en Angleterre et en France sont similaires. Cela n’est pourtant pas le cas.
The divorce petition has been lodged. The focus can now switch to the two other key components of a separation, of which one is the finances. The process of applying for a financial order, and what order is made at the end, will be an important factor in deciding where to divorce. Many clients assume that processes in England and in France are largely similar. However, this is not the case. In this blog, we summarise the key stages in both French and English financial order applications, including the application, supporting information, hearings, criteria and available orders.
Misconceptions and myths are commonplace in the world of cross border divorce. I am reminded of the “Judgment of Paris” painting, depicting the moment when a panel of eminent French wine critics, in a taste test, discovered they had ranked Californian wines higher than French.
We welcome views and opinions about the issues raised in this blog. Should you require specific advice in relation to personal circumstances, please use the form on the contact page.
Sharon Burkill
Natalie Cohen
Caroline Sheldon
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