Financing by a spouse of the purchase of jointly owned property in excess of their share: a reversal of case law

In a recent judgement, the Court of Cassation has reversed its previous case-law regarding a spouse’s financing of the purchase of jointly owned property in excess of their share. From now on, compensation payable to the joint owners will be assessed in accordance with the provisions of Article 1543 of the Civil Code.

In this case, the spouses, who were married under the regime of separate property, had acquired a property. The spouse who predeceased the other had financed the property using his own funds. During the division of the estate, the heirs demanded that a claim against the surviving spouse be registered against the estate.

The Court of Cassation established the principle that Article 815-13 of the Civil Code ‘does not apply to acquisition costs’. It follows that a spouse under the regime of separation of property who, by contributing personal funds, finances their spouse’s share in the acquisition of jointly owned property may assert against them a claim assessable in accordance with the rules referred to in Article 1543 of the Civil Code’.

In practice, the provisions of Article 1469(3) of the Civil Code must be applied to determine the amount of compensation for the joint ownership claim to be paid to the spouse who primarily financed the property.

For further details, please refer to the judgment handed down by the Court of Cassation (Cass. 1st Civil Chamber, 26 May 2021, No. 19-21.302).