Real estate assets Marriage as a protective foundation
When two people marry, the choice of matrimonial property regime determines the management of assets acquired during the marriage. This legal framework is crucial to ensuring clear, balanced asset management, particularly when it comes to real estate projects.
- Communauté réduite aux acquêts (default regime if no marriage contract is signed): Under this regime, all assets acquired after marriage belong to both spouses, even if only one finances the acquisition. This includes real estate purchased jointly or by one of the spouses. However, property owned before marriage, or acquired by inheritance or gift, remains the property of each spouse. This system favors joint management of assets, while protecting those that predate the union. In the event of divorce, the spouse who financed the purchase with his or her own funds can claim a reward, i.e. financial compensation.
- Separation as to property: This system allows each spouse to retain ownership of the property he or she acquires, whether before or during the marriage. In the case of property purchases, ownership is divided according to the financial contributions of each spouse. For example, if one spouse finances 70% of the property, he or she owns 70%. This system is ideal for couples with very different assets or incomes, as it enables them to maintain their financial independence while sharing the property project.
- Universal community property regime: This regime is generally chosen by couples seeking maximum protection for the surviving spouse. All assets, whether acquired before or after marriage, are considered joint property. In the event of death, if a full attribution clause is included, the surviving spouse automatically inherits the entire estate, without being subject to inheritance tax. This system is often preferred by childless couples, or those wishing to protect their spouse as a priority.
- Participation aux acquêts: This regime operates like a separation of property during the marriage, with each spouse retaining ownership of what he or she acquires. In the event of divorce, a compensation mechanism enables the spouse whose assets have changed less to benefit from a share of the other's enrichment.
Real estate financing The advantages of marriage
One of the major advantages of marriage is that it facilitates access to mortgages. Banks, reassured by the legal stability of marriage, are often more inclined to grant loans on advantageous terms. Here are the main financial advantages for a married couple:
- Greater borrowing capacity: Marriage enables both spouses to combine their incomes, thereby increasing their borrowing capacity. For example, a couple where each spouse earns €2,000 a month can borrow up to €320,000 over 25 years, i.e. a debt ratio of around 33%. This combined income strengthens the couple's financial solidity and reassures lending institutions. In comparison, an unmarried couple may find it more difficult to obtain a large loan, as banks are more cautious in the event of separation.
- Protective borrower's insurance: In the event of the death or incapacity of one of the spouses, borrower's insurance comes into play to repay the loan. For married couples, this insurance generally covers the entire loan, protecting the surviving spouse from financial hardship. Marriage thus reinforces the security of your assets, guaranteeing that the property will be repaid even in the event of unforeseen circumstances.
Transfer of assets Marriage provides lasting protection
Marriage considerably reduces inheritance tax. Unlike unmarried or civil-union couples, spouses are exempt from inheritance tax. This means that the surviving spouse will not have to sell the main residence or other real estate to pay inheritance tax, a significant security factor in managing the estate. By comparison, a cohabitee or civil union partner will have to pay inheritance tax of up to 60% of the value of the property. This considerable difference can have dramatic consequences for unmarried couples, often forcing them to part with the property.
Protecting the family home A guarantee for the future
The family home is one of the most protected assets in a marriage. Regardless of the matrimonial regime chosen, the law requires co-management of the main residence. This means that no major decision (sale, rental, donation) can be taken without the agreement of both spouses, even if one is the sole owner.
In the event of death, a number of measures protect the surviving spouse:
- The temporary right to housing allows the surviving spouse to stay in the main residence for one year, also using the household contents.
- The lifetime right to housing allows the surviving spouse to occupy the main residence for the rest of his or her life, under certain conditions. This right is deducted from the surviving spouse's share of the estate, but offers great security for married couples.