No longer necessary to divide assets equally . Men can now retain full ownership of their property.
China's New Family Relations Law: A Shift in Property Rights During Divorce
As of February 1, 2025, China has implemented a new family relations law that brings significant changes to property division during divorce. The law, aimed at addressing declining birth rates and rising divorce rates, primarily considers the financial contributions of each spouse when dividing major purchases.
Under the new law, property acquired before marriage is fully returned to its original owner upon divorce. This includes gifts of real estate from parents to one spouse, which retain their special status and remain the property of the giver. However, the law does not specify how the contribution of each spouse to the family's overall prosperity is determined for the purpose of property division.
In cases of major purchases like apartments or houses, the division will be based on the actual financial contributions made by each spouse, not equally. Experts suggest that the division may not be proportionate to the property value, but rather reflect who actually paid for the purchases.
The law also toughens penalties for adultery, with the guilty party receiving a smaller share of the property upon divorce. Dowries are now subject to return according to Article 3 of the new family relations law.
However, the new law does not address the division of property acquired during the marriage upon divorce, nor does it specify how the division of major purchases will be carried out in cases where the contributions are not proportionate to the property value. Furthermore, it does not provide details on how the law will be enforced or what consequences there may be for non-compliance.
The main innovation of the new family relations law is that it provides greater protection and clarity in matters of property rights during divorce. It also acknowledges the economic value of child-rearing labor, but the court does not consider it in property division, sparking debates about demographic consequences.
Spouses who assumed disproportionate family responsibilities (such as child-rearing or elder care) may seek equitable compensation for their non-financial contributions during divorce proceedings. This approach notably impacts women who may have focused on domestic roles and who brought no assets into the marriage.
In cases where spouses are joint investors in a business without a clear ownership agreement, courts will evaluate financial inputs and relevant corporate documents rather than rely solely on company records. The law does not require the spouse's name to be on the documents for property acquired before marriage to be returned upon divorce.
The new family relations law in China is a step towards addressing the complexities of property division during divorce, but it leaves many questions unanswered. As the law is implemented and interpreted by courts, more clarity is expected to emerge in the coming months.
- The new family relations law in China acknowledges that the division of major purchases like apartments or houses during divorce will be based on the actual financial contributions made by each spouse.
- The law also addresses the return of dowries and gifts of real estate from parents to one spouse upon divorce, preserving their special status as property of the giver.
- In cases where spouses are joint investors in a business before marriage, the law encourages courts to evaluate financial inputs and relevant corporate documents to determine property division, rather than solely relying on company records.
