Buying for two without making a mistake

Wedding

Choose the right matrimonial property regime

If you have opted for marriage before becoming a homeowner, you have the opportunity to organize your future assets and anticipate any problems that may arise. The "status" of the house or apartment you buy will depend on the matrimonial property regime you choose. So, with or without a marriage contract?
Without a marriage contract, this is the regime of community of property reduced to acquests.
Adopted by around 80% of married French people, this regime applies automatically if, on the day of marriage, the spouses have not signed a contract. In plain English, this means that if you don't make any plans and don't go to the notary to draw up a marriage contract, the community of acquests regime applies automatically. You will then be married under the "community of property reduced to acquests" regime. There are two categories of property: joint property purchased by the spouses during the marriage, together or separately, and each spouse's own property, owned before the marriage or acquired after it, by gift or inheritance. With this matrimonial property regime, each spouse is deemed to own half of the property purchased after the marriage. This is the case even if one of the spouses has made a larger financial contribution to the purchase.
So, if you buy a property during the marriage with part of the financing coming from a gift or inheritance, the property will be deemed to be owned jointly in the absence of any particular precautions in your deed of purchase. Your notary will advise you to mention this in the deed. This is known as a declaration of "use" or "reinvestment". There is "use" if you are using your own money from an inheritance or gift, and "reinvestment" when the funds come from the sale of your own property. Such a clause should only be drawn up with the help of your notary, to avoid any subsequent disputes!

With a marriage contract: it all depends on the matrimonial regime you have chosen.

If you are married under the separation of property regime, all assets acquired before and after the marriage remain the personal property of each spouse. This is often the case when one of the spouses has a "high-risk" profession, such as trader or company director. This protects the spouse in the event of bad fortune. But what about the home? The property will become the exclusive property of the person who financed it. If you still want to buy as a couple, you will be subject to the joint ownership system, with both spouses owning the property to the extent of their investment.
Be careful, however, if you decide to buy the family home alone! You will be the sole owner, but if you wish to sell, you will need your spouse's express authorization.
In the event of separation: this works like a community. Each spouse will then be entitled to half of the other's acquests, i.e. half of the enrichment achieved during the marriage.
Change of regime
If your professional situation changes, you can change your matrimonial property regime after 2 years of marriage, by contacting your notary.

Pacsé or cohabiting

Choose from several options

If you're in a civil partnership, you'll be subject to the regime of separation of assets (default regime) or joint ownership (optional). Cohabitees also keep their assets separate. Only one of the cohabitees or partners can buy a property outright, with his or her own money. He or she will then be the sole owner. It is also possible to buy together using different legal tools.

Buying in joint ownership: fix everyone's share!

Buying in joint ownership

When you sign the deed of sale, everyone becomes the owner of the property, in proportion to their financial contribution (30/70, 50/50...). Please note that this is everyone's actual financial contribution! The breakdown therefore takes into account not only each person's personal contribution, but also their contribution to loan repayments. If nothing is indicated, the property is deemed to belong to each of the partners equally. Any subsequent change in the proportions is treated as a sale or gift, and taxed as such. It is also a good idea to include a "preferential allocation clause" in the deed of purchase. This means that, in the event of the death of one of the parties, the other has priority to buy out the deceased's undivided share from the heirs. If you are married: this is automatically provided for by law. One caveat! The Civil Code states that "no one is obliged to remain in joint ownership". In the event of disagreement, one of the undivided co-owners may at any time apply to a judge for judicial division. When you split up, the most common solutions are as follows: either you sell the property and recover your share of the price, or one of you buys out the other's share of the property and becomes the sole owner.

Setting up an SCI: become partners
Buying through an SCI
You can also set up a non-trading property company (société civile immobilière) to buy the property directly, with the money contributed by the two partners. It's important to draw up the articles of association. When you set up your SCI, your notary will advise you on drafting the operating rules and choosing the manager. In this case, the company owns the property, and the capital is divided into shares. You can therefore sell, buy or give away your shares as you wish. The advantage of the SCI is that it avoids the risks of deadlock that can arise with joint ownership.

Stéphanie Swiklinski