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.
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.
further information
If you have any questions regarding this blog, please contact our Anglo-French team.
about the authors
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.
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