1999
Year the PACS was created by Law 99-944 of 15 November 1999 — substantially reformed in 2006 to introduce the separation of property default.
€80,724
Tax-free allowance on gifts between PACS partners — identical to the allowance between married spouses, renewable every 15 years (CGI Art. 790 F).
0%
Inheritance tax rate for PACS partners named as legatee — full exemption since 2007, same as married spouses (CGI Art. 796-0 bis).

What the PACS Is — and Is Not

The pacte civil de solidarité (PACS) is a contract entered into by two adults to organise their shared life (C. civ. Art. 515-1). It is available to couples of different or the same sex. Once registered, it confers a legal status — an intermediate position between cohabitation and marriage — that activates a specific body of rights and obligations regardless of what the convention itself says. The PACS cannot be concluded between two persons one of whom is already married or party to another PACS, or between close relatives — ascending and descending lines, in-laws in the direct line, or collateral relatives up to and including the third degree (C. civ. Art. 515-2). Both partners must be legally competent adults.

Formation: Convention, Registration, and Effect

Drafting the Convention

To enter a PACS, the partners must draft a convention organising their shared life — by private document signed by both parties, or by notarial deed (C. civ. Art. 515-3). Given the legal consequences, it is strongly recommended that the partners use a professional (notary or lawyer) for the drafting. Within the limits set by statute, the partners have considerable freedom to shape the convention's content: they may specify the modalities of their mutual material assistance, choose their asset regime (separation of property or indivision), and insert detailed clauses governing shared expenses. Clauses that suppress the obligation of mutual material assistance, restrict the right to dissolve the PACS, or prevent a partner from claiming damages for a unilateral rupture are void.

Drafting Point — Define the Scope of Material Assistance

The law does not define what "material assistance" covers. Courts have held that mortgage repayments on a jointly owned home count as material assistance, meaning a partner who financed the entire mortgage alone was denied a reimbursement claim (Cass. 1ère civ. 27-1-2021 n° 19-26.140 FS-P). Inserting a clause explicitly excluding real estate financing from the scope of material assistance — and providing for account-keeping between partners on property expenditure — is one of the most practically important clauses a PACS convention can contain.

Registration and Effect

The PACS takes effect between the partners from the date of its registration (C. civ. Art. 515-3-1). Registration is effected by a joint declaration before the officier d'état civil of the municipality of their common residence — or, where the convention is by notarial deed, before the notary who drafted it. Persons of foreign nationality born abroad register with the central civil registry of the Ministry of Foreign Affairs. The PACS becomes opposable to third parties only once it is noted in the margin of each partner's birth certificate. Until that marginal note is made, third parties who were unaware of the PACS cannot be bound by it — asset transactions (particularly real estate purchases) should not be completed until registration and the marginal note have been confirmed.

Daily Life: Obligations, Debts, and Taxation

Mutual Assistance and Household Debt Solidarity

PACS partners owe each other a general duty of mutual assistance and a duty of material assistance — both mandatory and not excludable by convention (C. civ. Art. 515-4 al. 1). Unless the convention specifies otherwise, material assistance is proportional to each partner's respective means. Partners are jointly and severally liable for debts contracted by either of them for the needs of daily life (C. civ. Art. 515-4 al. 2). The solidarity covers household and child-rearing expenses. It does not apply to manifestly excessive expenditure, to instalment purchases, or to loans contracted alone — unless for modest sums necessary for everyday needs whose cumulative amount is not manifestly excessive.

Income Tax and IFI

PACS partners are subject to the same income tax rules as married couples (CGI Art. 7). They file a joint income tax return and benefit from the quotient familial system from the year in which the PACS is registered — a couple who registers in December benefits for the entire fiscal year. For the IFI, PACS partners constitute a single fiscal household; all their taxable real estate assets are aggregated (CGI Art. 964).

The Asset Regime: Separation or Indivision?

The Default: Separation of Property (Since 1 January 2007)

For all PACS concluded on or after 1 January 2007, the default regime is separation of property (C. civ. Art. 515-5). Each partner is the sole owner of assets they acquire for value, create, or receive gratuitously during the PACS. Assets whose ownership cannot be proved belong indivisibly to each partner in equal shares. Each partner is presumed by third parties in good faith to have the power to act alone on moveable assets they hold individually. The separation regime offers clean lines and strong creditor protection — each partner's personal creditors are confined to that partner's own assets.

ℹ️
Proof of Ownership Under the Separation Regime

Ownership can be proved by any means between partners and against third parties. Assets that neither partner can prove they own exclusively are presumed to be held indivisibly half and half. This 50/50 presumption can be rebutted — but only by evidence, not by the mere assertion that one partner financed more than half of an acquisition. Keeping clear financial records and ensuring that purchase deeds reflect actual contributions is essential.

The Optional Regime: Indivision

Partners may opt in their convention for a regime of indivision (C. civ. Art. 515-5-1). Under this regime, all assets acquired for value from the date of registration of the PACS — whether purchased together or by one partner alone — are presumed to be jointly owned in equal shares. Certain assets remain personal regardless of the indivision option: personal-character assets, assets created during the PACS, income received but not invested in asset acquisition, assets owned before the PACS, and assets acquired using inherited or donated funds — provided a declaration of use is included in the deed of acquisition (C. civ. Art. 515-5-2). Without that declaration, even inherited funds used to purchase property during the PACS create a jointly owned asset. Under indivision, the sale of any jointly owned real estate requires both partners' agreement (C. civ. Art. 1873-8), and each partner has a mandatory right of pre-emption if the other wishes to sell their undivided share to a third party (C. civ. Art. 1873-12).

FeatureSeparation of property (default)Indivision (optional)
Applies toAll PACS from 1 January 2007 unless parties opt outRequires explicit clause in PACS convention or amendment
Ownership of assets acquired during PACSBelongs solely to the acquiring partnerPresumed jointly owned 50/50, whether bought alone or together
Assets unproven as either partner'sPresumed indivision by halfAll acquisitions presumed indivision by half (with exceptions)
Creditor protectionStrong — personal creditors limited to personal patrimonyWeaker — jointly held assets may be reached by either partner's creditors for their share
Sale of jointly held real estateJoint consent required if held in indivision voluntarilyAlways requires both partners' agreement
Best suited forPartners with separate careers and independent asset bases; business ownersPartners pooling resources; couples resembling a community matrimonial regime

Housing Rights: During and After the PACS

During the PACS

PACS partners do not benefit from the Art. 215(3) protection of the family home that applies to married spouses. A partner who is the sole owner of the shared residence can in principle sell or encumber it without the other's consent. Where the shared home is rented, PACS partners who jointly request co-tenancy acquire joint tenancy rights under Art. 1751 C. civ. — a notice to quit given by one partner has no effect on the co-tenant partner. If the lease-holding partner dies, the surviving co-tenant has an exclusive right to the lease unless they expressly waive it. A PACS partner who owns a rented property can give notice to recover it for the benefit of their PACS partner, or for the partner's ascendants or descendants (Loi 89-462, Art. 15 al. 1).

On the Death of a Partner: Temporary Right of Occupation

On the death of one partner, the surviving PACS partner has a one-year right of free occupation of the shared home and its furnishings, whether the couple were tenants or owners (C. civ. Art. 515-6 al. 3). This right is not of public order — it can be removed by will. A partner who wishes to ensure the survivor retains this right should confirm it expressly in their will or use a structural mechanism.

Attribution Préférentielle

On dissolution of the PACS — whether by death or separation — either partner may request the preferential allocation (attribution préférentielle) of certain jointly held assets, subject where necessary to payment of a balancing sum (soulte) (C. civ. Art. 515-6). The right to preferential allocation of the shared home and the vehicle necessary for daily life or professional use becomes a right — not merely a faculty — for the surviving partner, provided the deceased partner has so provided by will (C. civ. Art. 515-6 al. 2). Without the will, the right exists only as a request to the judge, in competition with other claimants.

Inheritance and Gifts: The PACS Tax Advantage

No Automatic Inheritance Rights

The PACS confers no automatic succession rights (C. civ. Art. 853). A PACS partner who dies intestate transmits nothing to the surviving partner through the legal rules of succession. To inherit, the surviving partner must be named in a will. The will must be drafted by each partner individually — a joint will is prohibited. Partners frequently use testaments croisés — two separate but mirrored wills, each partner naming the other as universal legatee. These are entirely valid provided they are drafted on separate documents.

The Missing Will Risk

Without a will, a PACS partner inherits nothing — not the home, not the savings, not the jointly built patrimony. The PACS registration alone creates no succession right whatsoever. Every PACS couple should treat drafting mutual wills as an integral part of entering the PACS, not as an optional subsequent step.

Inheritance Tax: Full Exemption

Where a PACS partner is named as legatee, they benefit from total exemption from French inheritance tax (CGI Art. 796-0 bis). This exemption — applying since 2007 — is identical to the exemption enjoyed by married surviving spouses. It applies regardless of the value of the estate transmitted and extends to the reversion of usufruct in favour of the surviving partner (CGI Art. 796-0 quater). A cohabiting partner in identical circumstances pays 60% inheritance tax after a mere €1,594 allowance — the fiscal advantage of a PACS with a will is enormous.

Gifts Between PACS Partners: The €80,724 Allowance

Gifts between PACS partners benefit from the same €80,724 tax-free allowance as gifts between married spouses (CGI Art. 790 F al. 1), renewed every fifteen years, and from the same progressive tariff. There is one important restriction: the allowance is clawed back if the PACS is dissolved in the calendar year of its conclusion or the following year, for any reason other than the partners marrying each other or the death of one of them (CGI Art. 790 F al. 2). Partners who make substantial gifts shortly after registering their PACS should be aware of this two-year clawback risk.

Dissolution: How the PACS Ends and What Happens Next

The PACS dissolves automatically on: the death of either partner; the marriage of the partners to each other; or the marriage of one partner to a third party. It can also be dissolved by joint declaration or by unilateral decision — requiring only that the dissolving partner serve written notice on the other through a bailiff (huissier), who forwards a copy to the civil registry authority (C. civ. Art. 515-7). There is no requirement to demonstrate cause, no waiting period, and no judicial process.

1
Dissolution takes effect on registration — not on service
The PACS ends between the partners on the date the dissolution is registered by the civil registry authority, not on the date one partner serves notice on the other. The dissolution becomes opposable to third parties only once it is noted in the margin of each partner's birth certificate.
2
Partners liquidate their own rights — the court intervenes only if they cannot agree
The partners themselves organise the liquidation of rights and obligations arising from the PACS (C. civ. Art. 515-7 al. 10). Only if they fail to reach agreement does the juge aux affaires familiales intervene. There is no automatic financial compensation — no equivalent of the divorce prestation compensatoire.
3
Partage of jointly held assets: the 1.10% reduced rate applies
The partition of assets held jointly by the partners is subject to a reduced droit de partage of 1.10% on the net value of the shared assets at the date of partition (CGI Art. 748). To benefit from this reduced rate, the partition deed must be signed after the dissolution is registered. Partitions effected before dissolution are taxed at 2.50%.
4
No capital gains on the partition itself — but the subsequent sale is taxable
The partition of jointly held assets on dissolution gives rise to no capital gains tax — neither on securities (CGI Art. 150-0 A IV) nor on real estate (CGI Art. 150 U IV). However, when a partner subsequently sells an asset attributed to them in the partition, the taxable gain is calculated from the original acquisition date and price, not from the date of partition.

Claims and Damages on Dissolution

A partner may claim a debt against the other where they contributed financially without any intention to make a gift — most commonly where they financed more than their share of a jointly held asset or paid shared expenses excessively over their proportional obligation. Where the convention is silent on valuation, the rules of C. civ. Art. 1469 apply by analogy: a partner who contributed funds to improve or acquire the other's personal asset is reimbursed that sum revalued in proportion to the asset's appreciation. A partner harmed by a unilateral dissolution may also seek damages from the court (C. civ. Art. 515-7 al. 10) — this right is of public order and cannot be excluded by convention.

Structuring Protection for the Surviving Partner

Because the PACS creates no automatic succession rights, deliberate planning is required. The following mechanisms can be combined:

  • Mutual wills (testaments croisés): each partner names the other as universal legatee; the surviving partner inherits the entire estate free of inheritance tax. Wills must be reviewed and updated as circumstances change (children born after the will was drafted will have reserved share rights).
  • Life insurance (assurance-vie): proceeds pass outside the estate directly to the named beneficiary; provides liquidity to pay charges and buy out reserved-share heirs.
  • Tontine clause (clause d'accroissement): where the shared home is purchased with a tontine clause, the surviving partner becomes sole owner retrospectively — free of inheritance tax under CGI Art. 796-0 bis. Requires genuine financial aleatory equivalence; cannot be revoked unilaterally. Most appropriate for older couples with no children.
  • SCI with protective articles: an approval clause prevents the deceased's heirs from entering the SCI without the survivor's agreement; cross-dismemberment of shares can preserve the survivor's control through usufruct.
  • Preferential allocation by will: to convert the surviving partner's right from a mere faculty into an entitlement, the deceased partner must provide for it by will (C. civ. Art. 515-6 al. 2).
Key Points: What Every PACS Couple Must Know
The PACS creates mutual obligations — material assistance and household debt solidarity — from the date of registration; both are mandatory and cannot be contractually excluded (C. civ. Art. 515-4).
The default asset regime since 2007 is separation of property: assets acquired by one partner alone belong to that partner alone (C. civ. Art. 515-5). Consider an indivision clause if you want a community-style pooling of acquests (C. civ. Art. 515-5-1).
Material assistance can include mortgage repayments on the shared home — if you want to track financial contributions to real estate separately, insert an explicit clause excluding property financing from the scope of material assistance (Cass. 1ère civ. 27-1-2021 n° 19-26.140 FS-P).
The PACS confers no automatic succession rights: without a will, the surviving partner inherits nothing (C. civ. Art. 853). Every PACS couple should treat drafting mutual wills as an integral part of entering the PACS.
With a will, the surviving PACS partner pays zero inheritance tax — the same full exemption as a married surviving spouse (CGI Art. 796-0 bis). Gifts between partners benefit from the €80,724 allowance, renewable every 15 years — clawed back if the PACS dissolves within 2 years (CGI Art. 790 F).
The one-year right of free occupation of the family home after a partner's death is not of public order and can be removed by will — confirm it by will or use a structural mechanism (tontine, SCI, attribution préférentielle) (C. civ. Art. 515-6 al. 3).
A PACS can be dissolved unilaterally without cause, without court involvement, within days — financial planning should not depend on the PACS continuing indefinitely (C. civ. Art. 515-7).
On dissolution, the partition of jointly held assets benefits from the 1.10% droit de partage rate (CGI Art. 748). No capital gains arise at the point of partition — but the subsequent sale of attributed assets is taxable from the original acquisition price and date.
Entering or Reviewing a PACS in France?

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This article is provided for general information and educational purposes only. It does not constitute legal advice. French family and patrimony law is technical and fact-specific; the consequences of a PACS depend on the partners' individual circumstances, the content of their convention, the location of their assets, and applicable tax rules. Always seek advice from a qualified French notary or lawyer.