Liquidation of matrimonial property after divorce: steps and common disputes

Frequent stages and disputes

The breakdown of a marriage does not end the financial obligations that bind former spouses. The dissolution of the marital bond entails a necessity: that of dissolve the matrimonial property regime in order to ensure a fair distribution of assets and liabilities.

This delicate operation is governed by precise technical rules and remains a source of disagreement and disputes.

The principle of liquidation of the matrimonial property regime

The liquidation of the matrimonial property regime takes place after the pronouncement of divorce, when spouses must terminate the joint ownership arising from their union.

Depending on the chosen regime: statutory community property, separation of property, participation in acquisitions or conventional regime, the procedures differ significantly.

The objective of the liquidation is to establish a comprehensive inventory of heritage, from’assess rights of each and of settle mutual debts.

The essential stages of liquidation

The first step is to draw up liquidation statement, which lists the assets and liabilities of the community or joint ownership.

At this stage, real estate assets must be valued, bank accounts checked and debts precisely quantified.

A second phase consists of determining any rewards and claims between spouses. The aim here is to restore balance when one spouse has personally contributed to the financing of joint property or, conversely, when joint assets have benefited separate assets.

Finally, there is the actual sharing. This can be done amicably, by private or notarised deed, or by judicial if no agreement is reached. The family court judge will then settle the disputes and order the necessary allocations.

Frequent disputes concerning liquidation

When it comes to the liquidation of matrimonial property, disputes mainly centre on the’property valuation. Each party may be tempted to maximise its rights, so that the value of a building or business may be subject to expertise.

Another source of contention lies in the calculation of rewards. Case law has clarified the conditions for reimbursement of sums invested by one spouse for the benefit of the community, but these technical calculations, which are often complex, can fuel lengthy debates.

The debts between spouses also constitute a source of conflict. They concern, for example, the repayment of loans taken out to improve one's own property, or compensation for expenses incurred by a spouse after separation.

Finally, the debt sharing remains a source of opposition. The question of whether an obligation is common or personal can significantly alter the balance of the settlement.

The role of the judge and the involvement of experts

As mentioned above, if the former spouses are unable to reach an amicable agreement, the case is referred to the family court judge. The judge rules on the composition of the shareable mass, appoints a liquidator notary where applicable and is able to order preliminary investigation measures.

Real estate or accounting expertise then becomes crucial in determining the value of the assets and clarifying the rights of each party.

The liquidating notary draws up a draft liquidation statement. If the spouses refuse to sign it, the draft is sent to the judge, who rules on the disagreements and orders the judicial division of the estate.

When it is the source of numerous disputes, the liquidation of the matrimonial regime can take several years.

In practice, this duration has the effect of extending post-community joint ownership, a source of legal and financial uncertainty. Debts accrue interest, and the rights of third-party creditors must be preserved.