I am facing a separation: what will be the financial consequences?
Separation generates legal and judicial costs that you need to anticipate.
Division of assets:
The distribution of assets is one of the major financial issues involved in separation, based on the distinction between separate property (acquired before the union or through inheritance/donation) and joint property.
The compensation mechanism adjusts the flow between assets, and debts are distributed according to the same rules as assets.
Financial compensation:
Alimony (child or spousal support) ensures the maintenance of yourself and your children. They are deductible for the payer and taxable for the recipient.
Compensatory allowance compensates for disparities in your living conditions. The amount is determined according to the length of the marriage, your age, your health, your professional qualifications, the consequences of career choices, the liquidation of your assets and your retirement rights.
Special case of separation from a civil partnership or cohabitation
● For a civil partnership : Separation may result in the liquidation of the joint ownership or separation of property regime, depending on the agreement.
● For cohabitation: There is no specific legal framework, except in the case of joint purchases.
In any case, if there are children, you may request child support or be required to pay it.
How can you plan for the financial consequences of a separation?
To anticipate the financial impact of a separation, identify your matrimonial regime, draw up a complete inventory of your assets and debts, and keep the original supporting documents for your assets.
Assess the costs of the proceedings (lawyer, notary, bailiff), possible compensation (spousal and child support, and compensatory allowance), and amicably organize the future of the home and assets.
Consider the tax and social security implications, and seek the assistance of legal professionals to secure your financial situation.
Gaëtan ESCUDEY is available to assist and advise you on all the financial issues involved in your separation, in order to defend your property rights in your best interests and those of your children.