What are the financial consequences of a separation?

Separation generates legal and court costs that you need to anticipate.

Division of assets

The division of property is one of the major financial issues of a separation, based on the distinction between separate or personal property (biens propres ou personnels), acquired before the union or by inheritance or gift, and joint or undivided property (biens communs ou indivis).

The mechanism of claims or compensation payments (créances ou récompenses) also adjusts the flows between the different sets of assets, and debts are divided according to the same rules as assets.

Financial compensation

Spousal maintenance under the duty of support (pension alimentaire au titre du devoir de secours) and the contribution to the maintenance and education of your children are in principle deductible for the person who pays them and taxable for the person who receives them.

The compensatory allowance (prestation compensatoire) compensates for the disparity in standards of living. Its amount is determined according to the length of the marriage, age, health, professional qualifications, the consequences of career choices, rights in the liquidation, and retirement rights. Its tax treatment depends on how it is paid.

Special case of the end of a PACS or of cohabitation

• For a PACS (civil partnership): the separation may lead to the liquidation of the undivided ownership regime or of the separation of property regime, depending on the agreement.
• For cohabitation (concubinage): there is no specific legal framework, except in the case of a joint purchase in undivided ownership.

In both cases, if there are children, you may request a contribution to the maintenance and education of your children or be required to pay one.

How can you plan for the financial consequences of a separation?

To anticipate the financial impact of a separation, identify your matrimonial property regime, draw up a complete inventory of your assets and debts, and keep the supporting documents showing the origin of your assets.

Assess the costs of the proceedings (lawyer, notary, judicial officer, or commissaire de justice), the possible compensation (maintenance / compensatory allowance), and amicably organize the future of the home and assets.

Take into account 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.

This general information does not replace a consultation: each situation requires individual assessment.