In French law, spouses and couples in a civil partnership are jointly and severally liable for the payment of income tax, local rates and the wealth tax. The same is true in relation to the wealth tax (IFI) for those living in free union.

This means that in the event of default by one party, the tax authority can turn to the other for the whole of the debt.

Tax solidarity does not automatically end when the couple separate. They remain jointly and severally liable for tax debts created during the marriage or the relationship after the divorce or the breakdown of the civil partnership.

This rule applies even if the judgment or divorce agreement allocates all the taxes to only one of the former spouses, although it is capable of being challenged.

However, divorced or separated couples may request a discharge from joint solidarity of a tax debt incurred before the separation or the divorce subject to the applicant satisfying three conditions.

• Breakdown of the relationship;
• Compliance with tax obligations;
• A debt manifestly disproportionate to net income and assets.

In terms of the income and assets tests, the tax authority assess those of the applicant over the previous three years.

As for the charges taken into account, they include taxes and duties for the current year, and, generally speaking, all day-to-day living expenses.

The debt is not considered disproportionate if the tax authority considers that the applicant has the capacity to clear the taxes due within three years, but ultimately the conclusion of what is considered “manifestly disproportionate” is left to the appreciation of the tax office.

One of the changes made in the new law is that the income and assets tests may be waived, particularly where the applicant has been the victim of domestic violence, or in particularly critical circumstances, eg, health.

Similarly, a further change is that it is now possible to obtain relief from the taxes due, without the need to demonstrate that the debt is disproportionate, where the tax demands relate to their former partner's own property or activity, and the applicant can demonstrate fraud at the origin of the tax debt and did not benefit from it.

If these conditions are met the applicant is discharged from their obligation to pay for the portion of the income tax contribution corresponding to the income of their ex-spouse/partner and half of the joint income, as well as a discharge from late payment interest and assessment penalties. They remain liable for payment of the wealth tax for the proportion of the assets held by them, as well as half the local rates.

If the request is rejected or if there is no response within six months, the taxpayer may file a appeal or even contest the decision before the courts within two months. A material change in the financial circumstances of the applicant may be grounds for such an appeal.

Finally, if a discharge request is accepted by the tax authorities, then all the sums already collected by the tax office (between the separation and the filing of the discharge request) will be returned to the taxpayer. This is also a recent change in the law.

Sarah Bright of Bright Avocats states that: "Obtaining a discharge does not exempt the applicant from paying the part of the joint taxes that corresponds to their assets and personal income. They also remain liable for 50% of the couple's local rates."

Nevertheless, in the event of very serious financial difficulties it is possible to make a request for the tax authority to grant a full remission of any remaining taxes.

<ul>

    <li><a href="http://www.french-property.com/guides/france/finance-taxation/taxation/"><span style="font-weight: bold;">Guide to Taxes in France</span></a></li>

    <li><a href="https://france-insider.com/archive"><span style="font-weight: bold">France Insider News</span></a>

    </li>

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