To increase your borrowing capacity and afford the house of your dreams, the ideal is obviously to buy as a couple.

But unless you have strictly the same income and contributions, this long-term financial commitment requires questioning the distribution of the percentage of ownership of each.

Especially since your marital status can greatly change the situation... We review the possible scenarios with Antoine Hurel, notary in Paris.

Community Equity

Did you get married without a marriage contract?

It is then the system of community reduced to acquests that applies.

This situation is the simplest since all the goods acquired after the passage before the mayor are considered as belonging half to each of the spouses.

Under these conditions, it does not matter then that one repays more than the other the mortgage or even that he financed the purchase with a larger contribution since in the event of divorce, the sharing will be done 50-50.

There is nevertheless an exception, as Mr. Hurel explains to us: "If you inject a personal sum from the assets that you owned before your marriage or that you subsequently receive by donation or inheritance, it will be wise to add in the title deed a declaration of origin of the funds.

In the event of a separation, this amount, reassessed with regard to the added value of the property, will thus be added to half of the community due to you.

Acquisition quotas

Conversely, in a marriage subject to separation of property, each is in principle the owner of what he has actually financed.

In order to take into account the differences in income and contributions, it is here possible to determine the acquisition quotas of the two spouses in the title deed, in other words to specify the distribution of the percentage of ownership of the spouses.

Let's take the example of a purchase at €500,000, all costs included.

If you have invested €100,000 of personal contribution and then the remaining €400,000 comes from a mortgage repaid 50-50, you will have financed a total of €300,000 and will therefore own 60% of the property, against 40% for your spouse.

The public official whom we consulted warns us however: “It is essential to include in the title of ownership an explanatory clause of distribution to avoid any later litigation.

This is a table detailing how we arrived at these quotas and in which we specify the details of the purchase price, the costs, the agency commission, even the work envisaged, and on the other hand the contributions of the spouses and the percentage of repayments of the loan of each (50-50 in principle).

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think about after

Are you in a PACS or living together?

It is here also the regime of separation of property that is law.

Therefore, the title deed must be as detailed as possible and include the same distribution table of acquisition quotas. On the other hand, be aware that this percentage will apply in the event of death.

However, if the marriage protects the surviving spouse, the cohabitant and the PACS partner are not entitled to anything.

OUR “REAL ESTATE” FILE

To prevent your dear and beloved from finding themselves co-owner with your children or your family when you die, it is imperative here to draw up a will.

And even in this case, a partner will have to pay 60% inheritance tax since he is considered a third party, against 0% tax if you are in a PACS.

Something to encourage you to take the plunge...

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Good reflexes

Between a deed of ownership and reality, there is sometimes a chasm.

Remember that in the event of a divorce, a judge may challenge the percentage of ownership by taking into account the other household expenses, even within the framework of a separation of property regime.

On the other hand, cohabitants and PACS partners do not benefit from these protections... In the name of peace in the home and to cover your back, it is therefore strongly recommended to have clear and easily traceable accounts (in particular with titles of clear transfers).

And if a major life change requires a lasting change in the distribution of your loan repayments, do not hesitate to specify this in a "family agreement" written on plain paper, remembering to date and affix your two signatures.

For more security, you can even send it to your notary so that he can add it to the file.

Note:

it is also possible to create an SCI (real estate civil society) to buy the property for two, which has certain advantages and in particular avoids joint ownership.

Ask your notary.

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