Marriage is attractive for those in love who wish to share the rest of their lives with their partner, sharing difficult times and good times together, setting a framework for the family cocoon, a haven where they will raise their children.
It's important, however, to properly protect your personal wealth to facilitate a harmonious and secure relationship. An excellent way to protect one another is to sign a marriage contract. Discover the advice you need to follow before a wedding or to prepare for a serene and prosperous future.
Marriage in Switzerland: the 3 matrimonial regimes
In Switzerland, there are 3 different matrimonial regimes: participation in accruals, community of property and separation of property.
How the regime of participation in accruals works
The regime of participation in accruals is also known as the ordinary regime. In Switzerland, it corresponds to the union of spouses without the signing of a marriage contract. In this case:
- Each member of the couple retains ownership of assets acquired before the marriage, as well as those inherited or gifted during the marriage. These are known as "personal assets"
- Each spouse manages accruals or property acquired during the marriage independently;
- In the event of divorce, separation, death or change of matrimonial regime, the accruals are divided equally between the two spouses.
Community of property: guidelines
In the case of community of property, the spouses decide to pool all their wealth. This regime must be concluded as part of a marriage contract, in the form of an authenticated deed drawn up at a notary's office.
In the case of community of property, the spouses decide to pool all their assets.
Under this matrimonial regime, personal wealth and assets are managed jointly. In the event of divorce or separation, the division is 50/50 between the two partners in the couple.
Separation of property: each spouse preserves his or her wealth
Finally, the spouses can choose the regime of separation of property as part of a marriage contract, in the form of an authentic deed drawn up by a notary.
Under this regime, as the name suggests, the spouses' personal assets are not pooled and there is no division in the event of separation or divorce.
Key information: figures you need to know
Most newlyweds are reluctant to enter into a marriage contract. However, in the event of a union, the protection of personal assets is essential. Here are some figures that should make you think carefully:
- 6%: that's the divorce rate in Switzerland for marriages that generally last 15 years;
- 95%: this is the proportion of marriages in Switzerland that fall under the ordinary regime and are not accompanied by a marriage contract;
- only 10% of divorces take place with the mutual consent of both spouses.
So, to avoid unpleasant surprises, be sure to follow the advice of our wealth experts.
Marriage without a contract: how does it work?
If you choose to marry without a marriage contract, you are automatically subject to the matrimonial regime of participation in accruals.
This regime, also known as the ordinary regime, distinguishes between two types of property:
- Personal property: this corresponds to the assets each spouse owned before getting married. This may include real estate, a car, family jewellery, savings or personal effects. Those acquired by gift or inheritance during the marriage are also considered to be personal property.
- Accruals: these are property or assets acquired by the spouses during their marriage. This may include income, savings, material goods, an apartment or rental income.
Regime of participation in accruals: what happens in the event of separation?
In the event of separation or divorce, each spouse recuperates his or her own property, taking into account any capital gains or losses. They must transfer to the other half of their accruals, after deduction of any debts. Note that in the event of a deficit, the loss is not shared. In fact, it's because each spouse is required to transfer 50% of these accruals that the ordinary regime has been dubbed the regime of participation in accruals.
A small clarification is necessary: if one of the spouses has used his or her accruals to give a gift of great value without the consent of the other spouse, the value of the gift is added to the value of the accruals.
Finally, in the event of death, the matrimonial property regime is liquidated. In this case, the deceased spouse's estate may be:
- increased by the entitlement arising from the liquidation;
- reduced by the debt arising from this same liquidation.
Drawing up a marriage contract to protect your wealth
A marriage contract is really the best way to protect your personal assets when you marry. It enables you to adjust your matrimonial property regime, or adapt the regime of participation aux accruals, depending on your situation.
You can choose to include your own assets or property. For example, you can specify that returns from certain activities will be excluded from accruals. This is an interesting option if you're an entrepreneur and want to protect your shares in your business, listing them as your own property, to protect returns.
You can also specify, for example, that in the event of your death, you wish all of your accruals to revert to the survivor. This is a very pertinent solution if you have a jointly-owned property. Your spouse will then be able to keep it without having to pay compensation to the descendants.
Finally, you can also decide on a different division of accruals from that provided for by law in the event of separation.
Discover our services to realise your life project
Are you planning to get married and want to protect your personal wealth? Our experts are at your service to analyse your wealth and help you optimise your economic and tax situation. Don't hesitate to contact us to find out more.