Civil partnerships, marriage… What are the financial advantages and disadvantages?

Loving each other and uniting: yes, but which regime to choose? Marriage or civil partnership? In both cases, these civil unions bind two people, whether they are of the same sex or not.

On the other hand, the commitments of each party are not the same. Common property, heritage, daily life budget, inheritance… Marriage and PACS have similarities, but also differences.

To make the right choice, it is necessary to to weigh the pros and cons before getting started. - make the point.

Marriage, PACS, what are we talking about?

Marriage and PACS (the Civil Solidarity Pact) are both contractual elements organizing life as a couple.

Marriage is provided for in articles 143 to 164 of the Civil Code. The PACS, provided for in articles 515-1 to 515-8 of the Civil Code, exists since 1999, in response to marriage which then did not authorize the union of two people of the same sex. This is now the case since the law of May 17, 2013.

The marriage is celebrated in town hall, in front of the mayor or his deputy, recalls the website of the Ministry of Justice. The PACS agreement is registered at the town hall or in front of THE notary. The two contracts (marriage and PACS) can be registered alongside the partners’ birth certificate.

Matrimonial regimes and division of property

Several matrimonial regimes exist both in marriage and in civil partnerships, more or less binding and therefore binding.

The default regime for marriage is that of community of property reduced to acquisitions. As service-public.fr details, this means that the property you owned before the marriage will remain your property. On the other hand, property acquired once married will be the joint property of the couple. If a divorce ever occurs, only property acquired jointly will be shared.

For the PACS, the default regime is separation of property. This provides that each person remains owner of his property before and during the Pacs. In the event of separation, each will recover their own assets and in the event of property purchased jointly, it must either be sold or repurchased by one of the partners, explains the CCL law firm, specializing in family law. .

For the PACS, spouses can also decide to unite under the regime of joint ownership. In this case, the goods purchased jointly belong equally to both parties.

Joint or separate account?

The question of the budget is a central question in marriage as in civil partnerships. As service-public.fr reminds us, the two people concerned (both by the marriage and the PACS) can open a joint account. Both can have there proxy.

The couple can also open, in their two names:

• A bank book “whose rate of remuneration is not regulated”, specifies service-public.fr;
• A life insurance contract.

On the other hand, other savings products can only be opened in the name of one and the same person, specifies service-public.fr, such as Livret A, PEL (Home Savings Plan) or even PEA (Action Savings Plan).

Spouses can also open an undivided bank accountthat is to say an account which belongs to several people (joint holders) “on which all operations (withdrawal, deposit, etc.) must be validated by all the joint holders”, specifies the Ministry of the Economy.

The debts

In both unions, whether marriage or PACS, everyone is solidarity with the debts contracted by his partner for the needs of everyday life.

In the case of PACS, for purchases with credit, solidarity is only exercised “if you have given your consent at the time of purchase”, specifies service-public.fr. And regarding borrowingsthe spouse is jointly responsible only for “a modest sum necessary for the couple’s daily life” and for “reasonable sums in relation to the household’s lifestyle if several loans have been taken out”.

On the other hand, personal debts incurred are the responsibility of the person concerned in two cases: before the PACS and during the PACS, outside the needs of everyday life.

For marriage, the conditions differ, particularly regarding debts contracted by one of the spouses. If the matrimonial regime chosen is that of community of property, “Everyone must pay half the debt.” If the matrimonial regime chosen is that of separation of property, “only the one who contracted the debt is liable”.

If you contract a debt alone for strictly personal interest (or in the interest of your personal property), only you are liable.

Taxes

For taxes, whether under the PACS or marriage regime, couples realize a joint declaration and are taxed jointly.

“A single tax notice is sent to the couple, in the names of each spouse,” adds service-public.fr

Here too, both spouses are united of the tax to be paid: the tax administration can indeed ask one or the other to settle the entire payment.

Social Protection

“If one of the members of your couple is affiliated with complementary health insurance, check if the other can also benefit from health coverage,” underlines service-public.fr.

If you get married or enter into a civil partnership, it is essential to make the change of situation to the organization which pays the RSA, the ASS (Specific Solidarity Allowance), the AER (Retirement Equivalent Allowance), the Aspa (Solidarity Allowance for the Elderly), the Widowhood Allowance or even the AAH ( Disabled adults allowance).

In case of death

If the couple is married and one of the two spouses dies, the husband or wife becomes the heir. However, other legal heirs may also receive a share of all property.

On the other hand, the deceased person may have written a will in which the share of the inheritance allocated to his or her half is expressly noted.

In the context of the PACS, it is also and only the will which allows the person who remains alive to benefit from an inheritance.

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