Divorcing With Assets in France and the United States: What You Need to Consider Before Filing

Family law · 4 min read · By Olivia Uzan

A transatlantic life is a beautiful thing until it has to be divided. When your wealth sits on both sides of the ocean, an apartment in Paris, a home in the U.S., retirement accounts, a business, perhaps a trust, a divorce becomes an exercise in coordination as much as in law. The decisions you make in the weeks before filing can determine whether that division is orderly or ruinous.

Start with a map, not a fight

Before strategy, comes inventory. The single most useful thing you can do early is build a complete picture of what you both own and where it sits: French real estate, U.S. brokerage and retirement accounts, private-company shares, equity compensation, cash, and any structures such as holding companies or trusts. Cross-border cases fail when assets are treated in isolation, because the treatment of one often depends on the treatment of another.

Two legal systems, one marriage

French and U.S. law do not divide property the same way. France works through a “matrimonial property regime,” a legal framework fixed at (or before) marriage that determines what is jointly owned and what is personal. Most U.S. states have no such concept and instead divide at divorce under community-property or equitable-distribution principles. Where a couple’s assets and law straddle both systems, you can face a genuine puzzle: French rules governing the French property, U.S. rules for the rest, and difficult questions about which court decides what.

The French cost of dividing assets

France applies a specific tax when spouses formally divide jointly held property, known as the droit de partage. Following a reduction enacted in the 2020 Finance Act, the rate has stood at 1.10% since 1 January 2022 (down from 2.50% before 2021 and 1.80% during 2021), calculated on the net value of the assets being divided. On a substantial estate, this is a real number that deserves planning, not a footnote discovered at closing.

A U.S. judgment does not automatically work in France

This surprises many Americans. There is no bilateral treaty between France and the United States on the mutual recognition of judgments. In the absence of such a treaty, a U.S. judgment is not automatically enforceable on French soil. To give a U.S. divorce or financial order effect in France, you generally must go through a French court procedure called exequatur, in which a French judge checks that the foreign court properly had authority, that there was no fraud, and that the result does not offend fundamental French principles. Plan for this in advance; do not assume your American decree will simply “work” over French assets.

Tax residency changes everything

Where you are tax-resident affects income tax, the taxation of asset transfers, and reporting duties. Moving, selling, or restructuring assets before getting coordinated French and U.S. advice can trigger avoidable tax and can also weaken your legal position.

Consider David. A tech executive with RSUs in California and a Provence farmhouse, David wants to “simplify” by quickly selling the French property and closing joint accounts before filing. His counsel stops him: a rushed sale could crystallize French capital-gains tax as a non-resident, and emptying joint accounts could look like concealment. A calmer, sequenced plan protects both his money and his credibility.

A cross-border divorce rewards preparation and punishes improvisation. Contact us for a confidential consultation to build your plan before you file.

This article is general information and not legal advice. For guidance on your specific situation, please consult a qualified lawyer.