[Property] In a ruling dated 5 July 2023 (appeal no. 23-70.007), the Court of Cassation held that ‘the early repayment of a loan used to acquire jointly owned property, where made by a co-owner using their own funds whilst the property remains jointly owned, constitutes an expenditure necessary for the preservation of that property within the meaning of Article 815-13, paragraph 1, of the Civil Code’.

The judges of the judicial order state unequivocally in this decision that the early repayment of a joint loan amounts to a maintenance expense giving rise to a claim against the joint ownership, and not an acquisition expense giving rise to a claim between co-owners.

According to the Court of Cassation, the repayment of the loan constitutes an expenditure for the preservation of the property, regardless of the type of loan or the method of payment (early repayment, payment of monthly instalments or even a bridging loan). Article 815-13 of the Civil Code is intended to apply in this case.

However, a capital contribution constitutes an acquisition expense and does not fall within the scope of Article 815-13 of the Civil Code. It is, in fact, a claim between co-owners, the valuation terms of which are as follows:

Acquisition in undivided ownership by spouses under the regime of separate property:

Valuation in favour of the surviving spouse;

Application of Article 1543 of the Civil Code, as applicable by reference to Articles 1469 and 1479 of the same Code;

  • Joint acquisition by civil partners:
  • Valuation in favour of the surviving partner;

Application of the final paragraph of Article 515-7 of the Civil Code, applicable by reference to Article 1469 of the same Code;

  • Joint acquisition by cohabiting partners:
  • Valuation at face value;
  • Application of Article 1895 of the Civil Code;

Source: Court of Cassation, opinion of 5 July 2023, appeal no. 23-70.007

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