How French divorce handles financial compensation and division of matrimonial assets
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Published on :
15/11/2025
15
November
Nov
11
2025
How French divorce handles financial compensation “prestation compensatoire" and division of matrimonial assets, including real estate and bank accounts located abroad.
Divorcing in France involves more than splitting assets. Two key issues often arise: prestation compensatoire (financial compensation to balance economic inequality between spouses) ; liquidation of matrimonial assets (dividing property according to the marital regime). When international property is involved, cross-border assets add complexity. Understanding how these elements interact is crucial.
How Prestation Compensatoire And Asset Division Interact Under French Law
The prestation compensatoire is a financial compensation designed to offset financial imbalance. To award prestation compensatoire, judges consider each spouse’s income, wealth (including foreign assets) professional prospects, and contributions during the marriage.
The liquidation of assets determines who receives what, under the applicable marital regime. In case of dispute it will be resolved by a Judge.
While separate issues, the two interact. The liquidation determines who receives which assets (including foreign ones). The judge assessing the “prestation compensatoire” will consider the final division of property and whether one spouse ends up with significantly more.
Handling Assets Abroad From France
All assets must be identified, valued, and included, regardless of location.
Practical challenges often include: Obtaining foreign property deeds ; complying with local valuation or transfer rules ; resolving conflicts of law.
Our firm assists clients with French and international asset division, including prestation compensatoire claims, liquidation procedures, and coordination with foreign professionals.
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