Monaco: The Monegasque Civil Solidarity Contracts And Their Conditions

In order to comply with the ECHR case law and its international commitments, MONACO allows its nationals and residents sharing a common life plan to conclude two types of separate contracts called "civil solidarity contracts", recognizing both common-law unions and intra-family cohabitation to rule their respective rights and duties, since the adoption of Law No. 1.481 dated December 4^th, 2019 and entered in force on June 27^th, 2020.

This reform has also been led in accordance with Principality's concern to take into account the evolution in the family structure and promote a contemporary society. It enables the long-awaited recognition of the rights and obligations of unmarried partners, recognizing civil unions in all their forms, both heterosexual and homosexual.

The conclusion of a civil solidarity contract may be considered in two situations:

• when two natural persons of full age ("the partners") are living in a common-law relationship (the contract is known as a "cohabitation contract"); it should be noted that this option is open to partners of same or different sex and to incapable adults;
• when two adult members of the same family ("the cohabitants") live in the form of a joint household (the contract is known as a "living together contract").

To set them apart from the institution of marriage, these two new forms of commitment remain for now exclusively limited to patrimonial aspects. Therefore, the legal framework of these contracts that need to be drawn up before a notary does not impact personal status in any way. They are not transcribed in civil status registers, nor do they create a genuine family link affecting the rules governing filiation, parental authority, children's rights or maintenance obligations.

Law No. 1.481 grants common effects to both forms of the civil solidarity contracts (in social, criminal and criminal procedure, civil and civil procedure, labour, housing and health matters) and others specific to the cohabitation contract (in criminal, housing, labour, tax, social security benefits and employment matters).

These solidarity contracts do more specifically offer new social rights to partners and cohabitants such as:

• the rightful entitlement of their partner or cohabitant to social security coverage,
• reduced inter vivos and death duties from 16% to 4% being specified that in case the contract is breached before a 10-year period, the tax of 16% will apply retroactively to the gifts previously made,
• co-ownership by operation of law of the lease,
• the right to free use of housing and to the furniture belonging to the partners or cohabitants or totally dependent on the estate, for one year following the death of the partner or cohabitant.

On the basis of this new legislation, current and future Monegasque residents should reconsider their estate planning in order to decide whether any action is required to best achieve their objectives, keeping in mind that although they are based on a public deed which must be registered with the General Registry of the Court, the civil solidarity contracts are not irreversible and may be terminated by a simple unilateral declaration to the Notary who registered the deed, served on the other partner or cohabitant.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.