How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TKenney, Ph.D. Your Own Question
TKenney, Ph.D.
TKenney, Ph.D., French Attorney (Avocat à la Cour)
Category: French Law
Satisfied Customers: 831
Experience:  Practicing law in France, 10+ years of experience on Paris Bar. Taught French Business Law in US
52682299
Type Your French Law Question Here...
TKenney, Ph.D. is online now
A new question is answered every 9 seconds

Hello. I own a limited company in the seychelles which is being

This answer was rated:

Hello. I own a limited company in the seychelles which is being sued by a Nigerian company under English law. They are also trying to sue me personally.
Additionally, i am being divorced by wife and we have agreed, amicably, that i will hand one our property in France to her. The property was purchased last year for euro 400'000 and has a mortgage of approx 300'000.
My lawyer (in Switzerland) has advised that i either 'gift' her the property or sell it to her for a nominal sum (eg. euro 5000).
This legal action has already virtually wiped me out financially.

My questions are as follows:
1) If i gift it to her under French law (which appears the cheapest option) and i lose the 'private' case against me, can the gift be unwound and the assets be awarded to the Nigerian company ?
2) If i sell the property to her for a nominal sum of euro 5000, will i incur high sales taxes and notary costs under the french system ?

TKenney, Ph.D. :

Hello

TKenney, Ph.D. :

Your first question is : 1) If i gift it to her under French law (which appears the cheapest option) and i lose the 'private' case against me, can the gift be unwound and the assets be awarded to the Nigerian company ?

Customer:

Hello. Is this live ?

TKenney, Ph.D. :

Unless, they suspect some type of fraud and decide to sue you to try and get the gift annulled.

TKenney, Ph.D. :

It will be difficult for them to do that.

TKenney, Ph.D. :

You are free to do what you want with your prperty before a court order is rendered. However, if they are aware of the possible gift, they can try to obtain a court injunction to prevent yoou from making the gift to your wife.

Customer:

As i understand, since we had a joint venture company contract between my Co and theirs, normally under UK law they cannot sue me privately. However, they are trying and if, somehow they succeed, obviously my fear is for my assets.

TKenney, Ph.D. :

This is true especially if they have reasons to beleive that there will be no more funds at the end of the trial.

TKenney, Ph.D. :

I understand your fear.

TKenney, Ph.D. :

Your second question is : "2) If i sell the property to her for a nominal sum of euro 5000, will i incur high sales taxes and notary costs under the french system ?"

TKenney, Ph.D. :

Normally, in France the notary costs are left up to the buyer. It is about 8% of the selling price of the property.

TKenney, Ph.D. :

Also the buyer pays the sales taxes.

TKenney, Ph.D. :

The sales' is included in the 8% notary costs.

TKenney, Ph.D. :

The sales taxes are included in the 8% notary costs.

Customer:

So do you think i would be able to sell the property to her for the nominal price, transferring the mortgage to her and would this be able to be unwound ?

TKenney, Ph.D. :

You can sell the prperty to your wife at any price you choose, as long as you both agreeto the price.

TKenney, Ph.D. :

Again, this should not be unwounded, unless there is a court order forbidding you to sell the property or if the sale was done in a fraudulent matter.

Customer:

Ok. Many thanks for your advice.

TKenney, Ph.D. :

The problem with your noiminal price will be your wife's problem.

TKenney, Ph.D. :

It was my pleasure to help you out.

Customer:

one last qn...why would my wife have a problem with the nominal price?

TKenney, Ph.D. :

I meant that, the nominal price will be your wife's responsabilty to explain if there are questions asked. This does not meant that your wife will necessary have a problem.

TKenney, Ph.D. :

She may have to pay taxes on the real value of the property.

Customer:

ahhh...ok. Again, many thanks. you have been helpful.

TKenney, Ph.D. :

I am glad I was able to answer your question. Please don’t forget to provide a positive rating so I can get credit for the service I provided to you. If the answer was particularly helpful a BONUS is always appreciated too! Best regards XXXXX XXXXX!

Customer:

will do !

TKenney, Ph.D. and other French Law Specialists are ready to help you