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Division of Jointly Owned Property in Divorce Cases in China

Time:2024-04-13 10:44:01Source:Click:


When adjudicating divorce cases involving disputed properties, the first step is to determine the nature of the disputed property and whether it belongs to the joint ownership of the spouses. Once it's established as jointly owned, the next step is to determine the method and specific proportions for dividing the jointly owned property. Throughout the proceedings, the principles of family law should be upheld, with a focus on caring for women, minor children, and the innocent party, while considering the personal, safety, and emotional interests of the parties involved. Emphasis should be placed on substantive fairness and justice, as well as the differential protection of vulnerable groups.

1. Identification of Jointly Owned Property in Divorce

During the course of marriage, property acquired by one or both spouses through investment, purchase, inheritance, or gift shall, unless otherwise agreed upon by both parties or provided by law, be deemed as jointly owned property of the spouses. When dealing with disputed properties in divorce cases, the first step is to determine whether the property is jointly owned by the spouses.

a. Property Purchased Before Marriage
(1) If one spouse purchased a property with full payment before marriage, or cleared all loans and obtained the property certificate after marriage in their name alone, it should be recognized as the personal property of the investing party.

(2) If one spouse purchased a property with full payment before marriage, but the property is registered under the other spouse's name and there is a dispute over the ownership, factors such as the timing of the purchase, marriage, value of the property, duration of the marriage, economic capacity of the party making the full payment, etc., should be considered to determine if there was an intention of gifting.

(3) If one spouse signed a property purchase contract before marriage, paid the down payment with personal funds, and the remaining loan was repaid using jointly owned property after marriage, with the property registered under the payer's name, the property may be recognized as belonging to the payer, while the portion contributed by the other spouse towards the loan repayment and corresponding increase in property value should be considered jointly owned. Compensation should be provided by the registered owner to the other spouse, calculated based on the current value of the property compared to its value at the time of marriage.
In such cases, if the non-registered party can prove their pre-marital contribution to the down payment, they should also be compensated for their contribution and the increase in property value corresponding to it, calculated based on the current value of the property compared to its value at the time of purchase.


b. Properties Acquired After Marriage

When determining the nature of properties acquired after marriage, the principle of marital property acquired during the subsistence of the marriage applies. That is, any property acquired by either or both spouses during the marriage is considered marital property. Exceptions are then considered to determine if the property belongs solely to one spouse.

(1) Property Purchased or Constructed with Marital Funds After Marriage
Properties purchased or constructed with funds acquired jointly during the marriage are considered marital properties. Even if the property deed is registered under the name of one spouse, it doesn't change the fact that the property is jointly owned. This applies even to properties that were originally owned by one spouse before the marriage, such as homestead properties, if they are reconstructed, renovated, or expanded using marital funds after marriage.

(2) Properties Acquired Through Inheritance or Gift After Marriage
Properties acquired by one or both spouses through inheritance or gift during the marriage are subject to specific considerations:

·If the donor explicitly gifts the property to both spouses, it is considered jointly owned.

·If one spouse inherits or receives a gift after marriage, and the donor explicitly states that the property belongs only to that spouse, it is considered that spouse's personal property.

·If the donor does not explicitly specify ownership, the property is considered jointly owned.

(3) Property Purchased with Pre-marital Funds by One Spouse After Marriage

If a property purchased after marriage is registered solely under one spouse's name, and that spouse claims it as their personal property, they must provide evidence that the funds used for the purchase originated solely from their pre-marital assets. Otherwise, the property is considered marital property acquired during the marriage and subject to division in divorce proceedings.

2. Methods and Specific Proportions of Division of Jointly Owned Property

After determining the jointly owned property, the method and proportions of division should be determined based on the specific circumstances to achieve fairness and reasonableness.

a. Agreement on Division: If both spouses reach an agreement on the division, including the ownership and proportions of division, the court should respect and enforce the agreement.

b. Judicial Ruling: If spouses fail to reach an agreement, the court will make a ruling based on relevant laws. During the ruling process, the court will consider factors such as:

·Property Value: Assessing the market value of the property as a basis for determining division proportions.

·Contributions of Both Parties: Considering the actual contributions of both spouses in terms of purchase, repayment, maintenance, etc., including financial and non-financial contributions.

·Increase in Property Value during Marriage: Considering the increase in property value during the marriage and the reasons for it, such as renovations, changes in the surrounding environment, etc.

·Personal, Safety, and Emotional Interests: Taking into account the actual circumstances and interests of the parties involved, especially the principles of caring for women, minor children, and the innocent party.

·Substantive Fairness and Justice, and Protection of Vulnerable Groups: Emphasizing fairness and justice, with special attention to protecting the interests of vulnerable groups to ensure the final ruling complies with legal provisions and serves the public interest.

c. Specific Division Proportions: Based on the above factors, the court will determine specific division proportions to achieve fairness and reasonableness. Division proportions may not necessarily be equal but will be determined based on the specific circumstances to ensure the legitimate rights and interests of all parties are safeguarded.

During the adjudication process, the court will uphold the principles of fairness and justice, respect the rights of the parties involved, and safeguard the interests of vulnerable groups, ensuring that the final ruling complies with legal provisions and serves the public interest.
 
 
3. Parental Financial Contributions towards Property Purchase

Firstly, in divorce cases where one or both spouses' parents have contributed funds and participated in joint mortgage payments for the disputed property, the court cannot refuse to handle the case based on the involvement of one spouse's parents' rights over the property.

(1) Property Purchased with Down Payment from One Spouse's Parents Before Marriage
If one spouse's parents have paid the down payment for a property before marriage, and the property is registered under the name of the child receiving the contribution, with mortgage payments made jointly by the couple after marriage, typically the property is awarded to the registered owner. They will continue to repay the remaining mortgage, and the other spouse is compensated for their share of the joint mortgage payments (including principal, interest, and appreciation). If the property was registered jointly before marriage, it is considered marital property, and the parental contribution is viewed as a gift to their child.

(2) Property Purchased with Financial Contribution from One Spouse's Parents After Marriage
If one spouse's parents fully finance the purchase of a property and it's registered under the name of their child, it's considered their personal property. If it's registered jointly under both spouses' names, it's marital property. If one spouse's parents pay the down payment and the couple makes joint mortgage payments, regardless of whose name the property is registered under, it's considered marital property. In the absence of sufficient evidence to prove otherwise, the parental contribution is considered a gift to both spouses.