Find Out How to Divide Assets in International Divorce Lawsuit in China
Exploring the complexities of asset divisions in international divorce cases often proves contentious and intricate.
In this second part of our International Divorce article, we cover extensively regarding asset division and ownership of foreigners and their spouse in the divorce process in China.
1.What property belongs to the personal property of one of the spouses in the event of divorce?
Article 1063 of the Civil Code clearly outlines the personal assets of an individual spouse, which, upon marriage, remain separate and do not become shared property with the other spouse.
(i) Premarital property, defined as assets owned by an individual prior to marriage registration, retains its status as personal ownership unless otherwise specified by mutual agreement.
(ii) Personal Injury Compensation: Any damages or compensation received by either party for bodily injury sustained by an individual, directly associated with the injury, is considered personal property.
(iii) Property designated in a will or gift agreement as belonging exclusively to one party.
(iv) Household items set aside for personal use by an individual, like clothing and personal care items, are typically regarded as personal property.
(v) The law also offers a broad guideline to encompass other instances of clearly personal property and to accommodate the varied aspects of social life. When determining the allocation of property, an asset can only be classified as personal property if it doesn’t fit into the first four categories mentioned above but exhibits distinct personal exclusivity. If the classification of the property is ambiguous, it is treated as shared property.
2．What property belongs to the joint property of husband and wife?
The Civil Code and the Interpretation on the Application of the Marriage and Family Part of the Civil Code specify that the following assets constitute the shared property of the spouses.
i) Earnings, bonuses, and compensation for work performed.
ii) Income generated from production, business activities, and investments.
(iii) Income derived from intellectual property rights.
(iv) Inherited or donated assets, excluding those specifically designated in a will or gift contract as belonging solely to one party.
(v) Profits obtained from investments made by one of the parties using their personal assets.
(vi) Housing subsidies and housing funds received or entitled to be received by both spouses.
(vii) Basic pension and bankruptcy resettlement compensation received or eligible for both parties.
(viii) Other assets that are designated for joint ownership
3. Can the spouses agree that property acquired during the marriage and pre-marital property shall belong to each of them?
Yes. Indeed, both parties should sign a written agreement, or the assets acquired during the marriage will be deemed joint property of the spouses unless otherwise provided in laws. We strongly recommend notarizing the relevant property agreement to guarantee its validity and recognition by the court in the event of any disputes.
4. How is the joint property of husband and wife distributed by the Chinese court in case of divorce?
In principle, assets are typically distributed equally, following a 50/50 division. However, Chinese courts have the discretion to allocate a larger portion to the party responsible for childcare, the woman, or the innocent party, based on the specific circumstances of the property.
5. How is the property purchased for both parties at the expense of one parent to be distributed in the event of divorce?
If the house was bought by the parents of one party of the spouses before their marriage, it shall be deemed as the gift to their own child unless expressly stated by the parents that the gift belongs to the spouses. If the house was bought by the parents of one party of the spouses after their marriage, it follows the agreement made by the couple regarding the house at that time. If there is no agreement or the agreement is ambiguous, unless the parents explicitly intended the gift for only one of the spouses, the property is considered a gift to the spouses and thus becomes joint marital property.
Question & Answers
(1) Can the spouse who has contributed more to the family ask for compensation from the other spouse?
In accordance with Article 1088 of the Civil Code, a spouse who has taken on more significant responsibilities such as child-rearing, elderly care, or supporting the other spouse in their endeavors, holds the right to seek compensation from the other party in the event of divorce. However, the Civil Code does not define specific criteria for this compensation, often resolved through negotiation between the spouses or by the court’s decision.
(2) In the event of a divorce, if one of the parties is cheating on his/her spouse, how can the other party maximize his/her interests in the division of property?
As per Article 1091 of the Civil Code, if one spouse cohabits with another individual, leading to divorce, the innocent party is entitled to seek compensation from the party at fault.
Article 1091 of the Civil Code grants the innocent party the right to seek compensation in cases where circumstances leading to divorce are attributable to the fault of the other party.
(i) Bigamy
(ii) Living together with someone else.
(iii) Family violence
(iv) Abuse or abandonment of family members
(v) Other major faults.
(3) What should be done if one of the spouses is found to have transferred property during the divorce?
If one of the spouse is found to have concealed, transferred, sold, damaged, or recklessly spent shared marital assets, or attempted to incur joint debts deceitfully to seize the other spouse’s property, the court may, during the divorce asset division process, allocate a reduced or no share of the marital assets to that spouse. If such misconduct is discovered by the other party after the divorce, they have the right to petition the court for a reconsideration of the division of the couple’s shared assets.
(4) What debts are shared by both spouses?
(i) Debts jointly signed and acknowledged by both spouses.
(ii) Debts accumulated by one spouse, for which the other spouse subsequently acknowledges joint responsibility.
(iii) Debts accumulated by one spouse in their own name during the marriage to cover the family’s everyday necessities (excluding debts exceeding these needs.
(5) How are joint debts to be paid by both spouses?
Both parties are responsible for payment.
If you have any queries, please feel free to contact us
Saway Wang
Email: sawaywang@billionslawyer.com
Tel/Whatsapp: +86 18017682422
Do You Know the Methods and Jurisdiction of International Divorces in China?
With the growing number of foreigners residing in China, there is also an increasing divorce cases among international couples, whether between two foreign nationals or a mix of Chinese and foreign individuals. Exploring these situations requires a thorough understanding of the complex laws and regulations governing foreign-related divorces in China.
This article aims to provide comprehensive insights into the relevant Chinese laws that underpin these divorces, offering readers a nuanced understanding of the process. In China, there are two primary methods for filing for divorce: mutual consent and divorce litigation.
1. How To Get Divorced in China
(1) Methods of Divorce
Divorce in China can be broadly classified into two main avenues: mutual consent divorce and divorce via litigation. Mutual consent divorce entails the voluntary agreement between a married couple to dissolve their union, which is formalized through the marriage registration authority. On the other hand, litigation divorce involves one or both spouses resorting to the people’s court to initiate divorce proceedings.
(2) What are the advantages of divorce by mutual agreement?
Mutual agreement divorce offers a more streamlined and expedited process compared to litigation divorce. Essentially, if both parties reach consensus on the divorce, they can directly visit the Civil Affairs Bureau, China’s administrative body for marriage registration, to initiate the divorce registration.
Following a mandatory 30-day cooling-off period from the application date, if both individuals remain steadfast in their decision to divorce, they can return to the Civil Affairs Bureau to obtain the official divorce certificate.
(3) Can a foreigner get divorced by mutual consent in China?
If both spouses are officially married in China, they can pursue a mutual agreement divorce at the Civil Affairs Bureau. However, if both individuals are foreigners and their marriage wasn’t registered in China, divorce can only be achieved through litigation.
(4) Under what circumstances is a litigated divorce necessary?
If both parties are unable to reach a mutual agreement on the divorce or if both parties did not register marriage in China, it will proceed through litigation.
(5) If a divorce is obtained through litigation, under what circumstances will the court grant a divorce?
In the legal proceedings of China, when one spouse initiates a divorce lawsuit for the first time, the court typically doesn’t immediately approve the divorce. However, the court will grant the divorce unless specific circumstances exist.
i) Being married to more than one person simultaneously or living together with another individual while still married.
ii) Engaging in acts of family violence or maltreating and abandoning family members.
iii) If the individual has a history of repeatedly engaging in activities such as gambling or drugs abuse.
iv) Two years of separation resulting from irreconcilable differences.
v) Additional factors contributing to the deterioration of the couple’s relationship.
(6) What should I do if the court decides not to grant a divorce?
If the court does not grant a divorce in the first legal action, a second divorce petition can be filed after six months from the judgment’s effective date. If the spouses continue to live separately for one year following the first judgment, and one of them files for divorce again, the court is mandated to grant the divorce.
(7) How long does it normally take to file for divorce?
A divorce process typically spans from six months to a year. The duration may vary depending on the workload of individual courts, with those handling heavier caseloads potentially requiring more time. Opting for mediation can shorten this timeframe.
2. Determining Jurisdiction in Foreign Divorce Matters
Determining jurisdiction in foreign divorce matters involves understanding which court has the authority to hear the case. For international couples, this typically depends on the domicile or habitual residence of the parties involved. We have outline a framework to address the divorce court jurisdiction in each individual scenarios that may take place.
Scenario 1：Chinese + Foreigners
(1) If the marriage took place in China, and both parties settled abroad.
The jurisdiction will be prioritize granting to filing the divorce case in the courts of the country where the parties reside.
If the courts in the country of residence refuse to accept the divorce case and determine that it falls under the jurisdiction of the court where the marriage took place, or where one of the parties last resided in the country, then jurisdiction lies with the court in that location.
(2) If the marriage took place in abroad and both parties settled abroad.
The jurisdiction will be in the country where the individual lives is given priority for the divorce case.
If this court declines to hear the case, stating it falls under the jurisdiction of the individual’s home country, then the court in the individual’s original or last known residence in their home country will have jurisdiction.
(3) If the marriage took place in China or foreign countries, and one party has settled abroad，the other one has settled in China
The domicile of one of the domestic parties will have the jurisdiction, as stipulated in Article 23 of the Civil Procedure Law and elaborated in Article 15 of the Judicial Interpretation of the Civil Procedure Law.
(4) If the marriage took place in China or foreign countries, and both parties have settled in China
Then the defendant’s place of domicile or habitual residence will have the jurisdiction. (Article 22 of the Civil Procedure Law, “CPL”）
Scenario 2：Foreigners + Foreigners
(1) if the marriage took place in foreign countries, and one party has settled abroad, the other party has settled in China.
The People’s Court where one of the domestic parties resides has the jurisdiction (Articles 4 and 23 of the CPL)
(2) if the marriage took place in foreign countries, and both settled in China.
Jurisdiction is established based on the defendant’s domicile or habitual residence, in accordance with the plaintiff-versus-respondent principle (Article 4,22 of the CPL)
(3) At what level of court do foreign divorce proceedings need to be brought?
The Basic People’s Court holds jurisdiction over all foreign divorce cases.
(4) Can the parties to a foreign-related divorce choose by agreement to be subject to the jurisdiction of the Chinese courts?
In accordance with Article 277 of the updated Civil Procedure Law as of 2023, parties involved in foreign-related divorce proceedings have the option to select the jurisdiction of a Chinese court through written agreement, irrespective of their residence status or any affiliation with China.
If you have more queries about international divorce, please feel free to contact us
Saway Wang
Email: sawaywang@billionslawyer.com
Tel/Whatsapp: +86 18017682422
