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Show me the money – key differences between French and English financial order applications in divorce proceedings
Colleen Hall (née Nwaodor)
FRENCH VERSION / VERSION FRANÇAISE
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, Colleen (Associate in Family & Divorce) and Joseph (Senior Associate in Private Client) 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 highlight important considerations such as:
Three often encountered scenarios which we will keep in mind during the blog series are:
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? |
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 |
Each of these regimes will have resulting consequences in terms of divorce, succession and tax, and the above is only an introductory guide. There is 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, which will also feature input from our French counterparts.
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 guide 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 about French matrimonial regimes and their impact on divorce and in respect of inheritance and succession planning, please contact a member of our Anglo French services team. You may also be interested in reading more about Anglo French specialist law services and FAQs in respect of family law.
We provide legal support to French speaking clients, both individuals, their families and businesses, living in the UK and overseas. We also advise British expats living in France and elsewhere. We advise in respect of the laws of England and Wales but we can liaise with and refer clients to trusted advisors overseas as and when relevant.
Colleen Nwaodor is an Associate in the Family & Divorce team. She works on a wide range of private family matters, including divorce, matters relating to children (including relocation and contact arrangements) and financial disputes. She has particular experience in Anglo French financial disputes and she has a working knowledge of spoken and written French.
Joseph Austin is a Senior Associate in the Private Client Team. He specialises in the administration of deceased persons’ estates (probate), with a particular focus on estates that are complex and / or which have an international element. He also advises upon the preparation of wills and lifetime gifts and inheritance planning to include the preparation and administration of trusts. Joseph regularly advises French clients and UK clients with French links on cross-border succession and inheritance tax issues.
"The firm as a whole provides a "Rolls-Royce" service, with particular expertise in cases with an international / multi-jurisdictional element"
Legal 500 UK, The Client's Guide to Law Firms
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.
Colleen Hall (née Nwaodor)
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