Focus on Wealth Planning #14: Matrimonial regimes: which is the best fit?
Matrimonial regimes
A married couple’s matrimonial regime is a cornerstone of family law.
It is established by marriage contract or by law, and is strategically important for spouses and their families in determining how the marital property is managed.
The matrimonial regime is a set of rules for governing the financial and property affairs between the spouses, and with third parties, both during and in the event of divorce or death. It determines each spouse's control over their assets and has a direct impact on the surviving spouse's rights in the event of death.
It’s essential to select the matrimonial regime that’s right for your own and your spouse’s occupation, family structure and goals.
What are the two main types of matrimonial regimes?
There are two types of regimes: ‘joint’ or ‘community of property’ and ‘separation of property’, with different ways of bridging the two.
The community of property regimes seek to give both spouses a high degree of protection. One of these regimes is community of acquests — the ‘legal’ or default regime for couples married on or after 1 February 1966, provided no marriage contract was drawn up beforehand.
Here property acquired during the marriage belongs to both spouses, while property acquired before the marriage, or gifted or inherited before or during the marriage, belongs to each spouse alone.
Each spouse can therefore protect their own family wealth and each other.
The spouses may choose even more protection with a ‘universal’ community of property regime, allowing them to pool their assets, regardless of how they were acquired (purchase, gift, inheritance, etc.).
In contrast, ‘separatist’ regimes protect spouses individually by keeping their respective assets separate.
The separation of property regime is often chosen when one of the spouses is a company director or shareholder; it separates their professional assets from those of their spouse, thus protecting the family in case of legal action by the company’s creditors.
This may also be the best regime for blended families.
However, this system offers less protection than community of property regimes and can create an imbalance between the spouses' assets.
The advantages of these two main types of matrimonial regimes can be combined by:
for example, creating a shared pool of assets within a separation of property regime (société d'acquêts, or partnership of acquests), to which the spouses can contribute movable and/or immovable property; or
opting for participation in acquests — a hybrid regime that applies the rules of the separation of property regime during the marriage and implements the principle of community at the end of the marriage, by sharing each spouse’s accrued wealth (or acquests).
Beyond the matrimonial property regimes under the French Civil Code, spouses can tailor their regime with a pre-nuptial agreement:
A property that is separate by law can become part of the community;
A community, normally shared equally at death between the surviving spouse and the estate, can be allocated in full to the surviving spouse.
You can also revisit your choice of matrimonial regime and adjust it as circumstances and goals change. For example:
A business owner married under a separation of property regime may wish to protect their spouse and children by adopting a community of acquests regime as they end their career.
Changing or customising a matrimonial regime requires the involvement of a notary and is a non-judicial procedure.
The make the right choice, first identify and prioritise your goals. Review these goals over time to keep pace with changing circumstances — in your careers, family, health, or moving abroad, etc.
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Our wealth planners at Societe Generale Private Banking work with you, alongside your notary, to analyse and structure your estate, and offer you solutions for your specific goals and needs.
Find other articles:
Focus on Wealth Planning #9: Transferring your real estate assets
Focus on Wealth Planning #8: Estate planning for blended families
Focus on Wealth Planning #7: Financing your lifestyle
Focus on Wealth Planning #6: Protection for vulnerable people
Focus on Wealth Planning #5: Structuring and managing your wealth
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