High-net-worth divorce solicitor in Paris: dividing a large fortune without destroying it

High-net-worth divorce: what situations are we talking about?

In practice, a high-net-worth divorce involves substantial assets, several categories of assets, high or variable incomes, and sometimes an overseas element. It is characterised by the complexity of the division of assets, rather than the amount involved.

High income, substantial wealth, international assets: the clients we represent

We represent both spouses, depending on the case: the one who holds the assets and the one seeking their fair share. Our clients are often senior executives, heirs, owners of multiple properties or expatriate couples.

What makes a divorce complex: number of assets, net worth, liquidity, foreign connections

Four factors complicate the division of assets. Each requires a response as soon as the case is opened:

Do you run a company?

If your assets are based on a business, or even several companies, please visit our page dedicated todivorce solicitors for business owners.

How does your matrimonial regime determine the division of assets?

The matrimonial regime determines what is to be divided. Under the community of property regime, assets acquired during the marriage are divided equally. Under the separate property regime, each spouse retains their own assets. Under the participation in acquisitions regime, any increase in assets is shared. Your marriage contract – or the lack thereof – therefore determines everything.

Between spouses, the effects of divorce on property take effect from the date of the application (Article 262-1 of the Civil Code). The couple’s assets are frozen on that date.

Community of property limited to acquisitions: joint property, separate property, compensation

Without a marriage contract, you are married under the regime of community of property limited to acquisitions. All property is presumed to be joint (Art. 1402 of the Civil Code). Property acquired before the marriage and that received by gift or inheritance remains separate.

During the marriage, money often moves between the joint property and each spouse’s separate property. Upon divorce, these movements are rebalanced: this is the purpose of the compensation.

Example: the wife has inherited a house, which is her separate property. The couple finance €100,000 worth of renovation work on the house using their income, and therefore from joint funds. Upon divorce, the wife owes a compensation payment to the community of property, generally calculated on the basis of the increase in value that the renovation work has brought to the house.

Separation of property: joint ownership, claims between spouses and the clause on contribution to the costs of the marriage

Each spouse retains ownership of their own property (Article 1536 of the Civil Code). However, property purchased jointly remains undivided. A spouse who has financed an asset belonging to the other may also have a claim against them.

Take care with the clause regarding contribution to ‘day-to-day’ marital expenses. The Court of Cassation treats this as a presumption (Cass. 1st Civ., 20 March 2019, No. 18-14.571). A spouse claiming a debt must therefore prove that they have contributed beyond their means.

Share in marital acquisitions: calculating the entitlement to a share

During the marriage, each spouse manages their own property as if under the regime of separate property. Upon divorce, the amount each spouse has gained since the marriage is assessed. The spouse who has gained the least receives half of the difference (Article 1575 of the Civil Code).

Example: since the marriage, the husband’s assets have increased by €2 million and the wife’s by €400,000. The difference is €1.6 million: the husband therefore owes the wife €800,000.

Enrichment is calculated by comparing the value of the assets at the time of divorce with that at the time of marriage, excluding inheritances and gifts. You should therefore keep records of your assets as at the date of marriage.

Gifts and inheritances received during the marriage: how to prove they are separate assets

Under the community of property regime, a gift or inheritance remains separate property (Article 1405 of the Civil Code). However, you must keep a record of it. If these funds are mixed with income in a joint account, they lose their distinct identity.

When making a purchase, ensure a clause specifying the use or reinvestment of the funds is included in the deed. Also keepthe deed of gift and statements showing the flow of funds.

How is property divided in the event of a divorce?

There are four options. The spouses may sell the property, allocate it to one of them in return for a cash adjustment (financial compensation), or retain joint ownership. If no agreement can be reached, the matter will be settled by the courts. The matrimonial property regime, how the property was financed and any outstanding mortgage will influence the decision.

Main residence, holiday home, rental property: who gets what?

During the proceedings, the judge grants the right to occupy the family home to one of the spouses, either free of charge or in return for compensation (Article 255(4) of the Civil Code). In practice, the children’s residence often influences the judge’s decision. This right of occupation is provisional: it does not determine ownership.

Upon division of the estate, the main residence goes to the spouse who buys out the other’s share, provided both agree. If there is no agreement, they may request preferential allocation, but the judge is never obliged to grant it. If the property belongs to one spouse, they retain it. The court may, however, grant a tenancy to the other spouse where the children reside there.

For second homes and rental properties, there are no specific rules governing who is to be awarded them. The spouses divide the assets into lots of equivalent value, with a cash adjustment to compensate for any difference.

Example: one spouse retains the second home, the other the rental property.

In the absence of an agreement, the judge may order the property to be sold at auction. Our property lawyers ensure these transfers are carried out securely.

Family property investment company (SCI): shares, shareholders’ current account and management during proceedings

An SCI does not shield property from divorce proceedings. The division covers the shares, depending on the matrimonial regime, and the shareholder’s current account. This account constitutes a claim against the company: for further information, please see our page on the repayment of the shareholder’s current account.

Shares are often valued with an illiquidity discount, the rate of which varies depending on the valuer and the articles of association. During the proceedings, the managing director continues to manage the SCI. Keep a record of every decision: rent, building works, loans and disposals.

If the managing spouse refuses to consult the partners, the other spouse may apply to the court to have a representative appointed to convene a meeting. We successfully secured this in a case involving an SCI manager who refused to convene the general meeting.

Buy-out payment, outstanding mortgage and separation of ownership

The cash adjustment is calculated on the basis of the net value of the property, i.e. its value minus the outstanding mortgage balance. It then corresponds to the share of the spouse who is withdrawing from the property.

The spouse retaining the property pays €400,000 and assumes sole responsibility for the €400,000 mortgage. The 1.1 per cent division fee is added to this (Article 746 of the General Tax Code).

Please note: the bank is not bound by the divorce decree. The departing spouse remains a co-borrower until the bank agrees to release them from the loan. Negotiate this release from joint liability before signing.

Joint ownership after divorce: occupation allowance, management and liquidation of joint ownership

A co-owner who occupies a property alone is liable to pay occupation compensation, which is subject to a five-year limitation period. No one is obliged to remain in the joint ownership arrangement. If a sale is necessary, our property sales solicitor will ensure the transaction is carried out securely.

Usufruct and bare ownership: divided property

Usufruct gives the right to use a property and to receive income from it, such as rent.

Bare ownership is ownership without the right of use: it becomes full ownership upon the death of the usufructuary.

This situation often arises when parents have gifted bare ownership of a property to both spouses, whilst retaining the usufruct. The property then falls within the community of property (Article 1405(2) of the Civil Code). Upon divorce, the spouses divide the value of their bare ownership, not that of the entire property.

How should investments, high incomes and valuable assets be handled?

Each investment is subject to its own rules. The surrender value of a life insurance policy funded by unit trusts is held in common. Share options remain the sole property of the holder until they are exercised. Works of art and collections require expert valuation. Identify the relevant rules before quantifying their value.

• Life insurance, securities accounts, PEA savings plans: under the community of property regime, the surrender value of an outstanding policy, funded by unit trusts, is held in common. Securities accounts and PEA savings plans funded during the marriage follow the same principle. Under the regime of separate property, the policy remains in the name of the policyholder. Request a dated surrender value.
• Share options: option rights granted during the marriage are separate property. If exercised before the divorce petition is filed, the options result in joint shares; if exercised afterwards, they result in separate shares. The timing therefore benefits one spouse and disadvantages the other: do not decide on your own. For bonus shares, BSPCE warrants and deferred bonuses, everything depends on the terms of the schemes.
• Works of art, jewellery, classic cars: these assets have no official valuation. In the event of a disagreement, the judge may appoint a qualified professional to value them. Compile a file for each item: invoices, certificates, photographs, insurance policies.
• Crypto-assets: these are subject to the matrimonial regime in the same way as any other asset. Accounts held abroad must be declared (form 3916-bis), which helps to identify them. Specify in the agreement the date and source of the exchange rate used.

How can you prevent your spouse from concealing assets?

Insist on transparency, have any assets at risk frozen, and be aware that concealment will backfire on the person responsible.

• Transparency: each spouse must submit a sworn statement of their assets. The judge may contact the banks directly.
• Freezing of assets: before or during the proceedings, the judge may freeze certain assets or place them under seal.
• Penalty: a spouse who conceals a joint asset forfeits their share of that asset. An asset discovered after the divorce remains subject to division, with no time limit.

In the event of insolvency proceedings, our corporate criminal law solicitors will take over.

International assets: which court, which law, which assets?

Your assets abroad are included in the division of property just like any others. However, the country where you are getting divorced may determine which law applies, and therefore the outcome. Before taking any action, compare the possible courts and plan for enforcement in that country.

In practice, follow these five steps:

• Identify your assets abroad and how they are held: directly, through a company or via a trust.
• Compare the countries where you can get divorced. In principle, the first court to which the case is brought takes precedence, and the applicable law follows from this.
• Check the law governing your matrimonial property regime. This depends mainly on the date of the marriage and your first joint residence, not on the location of the wedding ceremony.
• Prepare for enforcement. A French judgement often needs to be recognised in the country where the asset is located. An amicable division of assets can avoid this procedure.
• Already divorced abroad? A compensatory payment may still be possible in France.

How is spousal maintenance determined for high earners or those with substantial wealth?

The judge compensates for the disparity that the divorce creates in the spouses’ living conditions. They apply the criteria set out in Article 271 of the Civil Code, including the value of the assets after liquidation. The compensation payment corrects an imbalance; it does not equalise the spouses’ wealth.

Pending the divorce, the less well-off spouse may be awarded maintenance under the duty of support. This ceases upon the granting of the divorce, when the compensatory allowance takes over.

The criteria of Article 271 in relation to substantial assets

Article 271 of the Civil Code takes into account, in particular, the duration of the marriage, age, health, professional circumstances and the foreseeable assets after liquidation. In cases involving substantial assets, this last criterion and career sacrifices carry the most weight.

Lump sum, transfer of property, usufruct: payment other than in cash

In principle, the compensation takes the form of a lump sum. It may be paid in cash, or through the allocation of property as freehold, usufruct or right of habitation. The court may only order the transfer of an asset as freehold property if a cash payment is insufficient. An asset received by inheritance or gift may only be transferred with the consent of the spouse making the payment. Negotiate the form as well as the amount.

On what date does the judge assess the disparity?

On the date the divorce becomes final, i.e. after any appeal, if there is one: update your valuations up to that date.

Separate property and the separation of property: when the compensatory payment is reduced or refused

Separation of property does not preclude compensatory allowance. However, if the spouse claiming it possesses significant separate property themselves, it may be reduced or even refused. The judge may also refuse it if equity so requires (Art. 270, para. 3). Its purpose is not to correct the effects of the matrimonial property regime chosen by the spouses.

How should child maintenance be set when incomes are high?

Whether you are paying or receiving maintenance, there are three key steps to follow:

• Quantify the actual needs: the Ministry of Justice’s indicative scale is not enough. A detailed and substantiated budget carries more weight.
• Treat major expenses separately: private or international schooling, studying abroad, extracurricular activities. Allocating these as a percentage avoids having to renegotiate each expense.
• Consider a lump sum: if your assets allow, child maintenance can be replaced by an annuity paid by an organisation, a usufruct or income-generating assets.

Amicable or contested divorce: which procedure should you choose when there are substantial assets involved?

With substantial assets, choosing between an amicable and a contested divorce amounts to choosing the timetable for the division of assets. A divorce by mutual consent requires the assets to be settled before the divorce is finalised. A contested divorce allows you to divorce first and settle the assets afterwards.

This decision is not final: legal proceedings may be concluded at any time by mutual agreement. At every stage, our support is aimed at protecting your interests.

What tax and inheritance implications should you anticipate?

Divorce changes your tax liability from the year of separation, triggers a right to partition and revokes certain benefits. Review your will, your beneficiary clauses and your wealth transfer strategy before signing, not afterwards.

Right of partition, capital gains, property wealth tax (IFI), income tax: tax implications in the year of divorce

Run a tax simulation for each division scenario before making a decision.

Gifts between spouses, matrimonial benefits, wills: what divorce revokes

Divorce distinguishes between what is annulled and what remains in force:

• bequests made to your spouse and clauses in the marriage contract relating to death, such as the allocation of the community property to the surviving spouse, are automatically revoked;
• assets already gifted to your spouse during the marriage remain theirs;
• your former spouse loses their status as an heir.

However, the spouse who made the revoked bequests or agreed to the revoked clauses may choose to uphold them.

Beneficiary clauses, gifts to children, inheritance: review your estate planning strategy

The fate of a life insurance beneficiary clause following divorce depends on how it is worded. Check each policy.

For inheritance planning, see our page on the steps involved in estate administration and the one on managing disputes between heirs.

How much does a divorce involving substantial assets cost?

The cost depends mainly on the procedure chosen, the number of assets and the expert valuations required. It comprises four components. Notary fees and the division of assets are set by law; lawyers’ and experts’ fees are negotiable.

Why entrust your high-net-worth divorce to Goldwin Avocats?

Choosing a solicitor for a high-net-worth divorce means choosing a team capable of fully understanding your financial situation. A single asset can raise issues relating to family law, taxation, business law and even international law. Our team of solicitors handles these matters holistically, from the breakdown of the relationship through to the liquidation of the matrimonial property regime.

Every case begins with listening: your priorities shape our strategy just as much as your financial statements. You benefit from personalised support and guidance at every stage.

When your spouse conceals assets or contests the case, we defend your rights without delay in court. When a settlement better serves your interests, we negotiate it with the same rigour. In both cases, every figure is based on verifiable wealth management expertise.