What happens to our assets after divorce?
When you divorce, it is not enough to simply end the marital relationship. You must also organize the separation and division of your assets, i.e., liquidate your matrimonial property.
What is it? The liquidation of the matrimonial regime is the process of fairly distributing the assets, debts, and claims accumulated during the marriage, according to the matrimonial regime (community property, separate property, etc.) and according to each person’s expenses and enrichment.
When and how are our assets divided? Once the divorce is finalized, you will then be in a phase of post-community joint ownership:
● If you reach an agreement on the distribution of assets acquired during the marriage, you will need to sign a division agreement, usually prepared by a notary (a draft statement of liquidation).
● If no agreement is reached, you will have to file a petition for liquidation and division of your matrimonial property.
Any debts and claims against your spouse will also be assessed, and those against the community or post-community joint ownership may give rise to compensation.
If you have become poorer for the benefit of the community (or your spouse), the community will owe you a sum to compensate for its enrichment; in other words, you will be entitled to compensation. Conversely, if your spouse or the community has become poorer for your benefit, you will have to pay them compensation.
What are the consequences for the family home? The family home has a special status.
● If you co-own the property with your spouse, the judge may decide to award it to one of you as part of a preferential allocation (Art. 267 of the Civil Code), but on condition that the recipient of the property pays the other spouse a cash adjustment corresponding to their rights in the property.
● If the home is rented, you are automatically considered joint tenants. Even in the event of separation, each party remains responsible for paying the rent until the divorce is final, unless the judge decides otherwise.
After the divorce, the judge may decide to assign the lease to one of you, taking into account family interests, possibly with compensation for the other (Art. 1751 of the Civil Code).
Gaëtan ESCUDEY is available to advise you on the liquidation of your matrimonial regime.