In real life, it is quite common for a man and a woman, either before marriage or during the marriage, to agree to transfer a property owned by one party to the other party or to add the other party's name to the Property Ownership Certificate. However, when it comes to divorce, the division of the property often becomes the focus of dispute between the two parties.
On January 15, 2025, the Supreme People's Court issued the Interpretation (II) of the Marriage and Family Section of the Civil Code. In response to the hot issues that have drawn widespread public attention since the implementation of the Civil Code, as well as the new situations and controversial issues that need to be resolved urgently in the trial practice of marriage and family disputes, further regulations were provided. This judicial interpretation clarifies the handling rules for the division of property in different situations when there is a property transfer between spouses during divorce.
The judicial interpretation distinguishes between two situations for the division of property in divorce: when the transfer registration has not been completed and when it has been completed, and provides corresponding regulations respectively.
1. The transfer registration has not been completed.
The judicial interpretation stipulates that if spouses agree to transfer a property, and during the divorce lawsuit, the two parties have a dispute over the ownership or division of the house and fail to reach an agreement through negotiation, the people's court can, based on the actual situation of the marriage and family, decide that the house belongs to one of the parties, and determine whether the party obtaining the house should compensate the other party and the specific amount of compensation. That is to say, the donor cannot revoke the agreement at will.
For example, when David and Mary got married, David agreed to give a property purchased before marriage to Mary, but the transfer procedures were never carried out. When dividing the property in divorce, the court will consider factors such as the length of the marriage, whether they have common children, the fault in divorce, and the contribution to the family.
Generally speaking, if the marriage has lasted for a long time, such as 10 or 20 years, although the transfer registration has not been carried out, the receiving party has made a lot of contributions to the family. When dividing the common property of the husband and wife in divorce, based on the donor's agreement, the receiving party can also claim that the property belongs to him/her, and the court can also decide that the property belongs to the receiving party.
However, if the marriage has lasted for a relatively short time, the court may no longer decide that the house belongs to the receiving party, but decide that the house belongs to the donor. However, some compensation can be considered for the receiving party to achieve a balance of interests between the two parties.
2. The transfer registration has been completed.
The judicial interpretation stipulates that if the marriage has lasted for a relatively short time and the donor has no major fault, the court can decide that the house belongs to the donor, and based on the actual situation of the marriage and family, determine whether the party obtaining the house should compensate the other party and the specific amount of compensation.
For example, after David and Mary got married, David transferred the house purchased before marriage to Wang. If the two have been married for many years, Mary can keep the property. But if the two have been married for a very short time and David has no major fault, the court will decide that the house belongs to David, and at the same time, require David to give Mary reasonable compensation.
In this regard, the court's explanation is that for property with transfer registration completed, in principle, the existing property order should be maintained, the reasonable expectations of the receiving party should be protected, and the value of good faith should be promoted. That is to say, as long as the transfer registration has been carried out, the court will consider that the house belongs to the receiving party.
However, some particularly unbalanced situations will also be adjusted. If the marriage has lasted for a very short time, for example, one year or even in some cases, the divorce is filed less than a week after the transfer registration of the house. At this time, if the donor has no major fault, even if the transfer registration has been carried out, the court can still decide that the house belongs to the donor, to clearly express a negative attitude towards the act of obtaining large - amount property through a short - term marriage.
It can be seen from this latest judicial interpretation that the court will balance the interests of all parties when making a judgment. It should neither make the party who has wholeheartedly contributed to the family sad and financially hurt, nor allow marriage to become a way to obtain improper benefits. It is sincerely hoped that in the trial practice, the spirit of this judicial interpretation can be effectively implemented.
Relevant regulations:
Interpretation (II) of the Supreme People's Court on the Application of the Marriage and Family Section of the Civil Code of the People's Republic of China
Article 5 During the period before marriage or during the marriage, if the parties agree to transfer the registration of a house owned by one party to the other party or both parties, and the transfer registration of the ownership of the house has not been completed during the divorce lawsuit, and the two parties have a dispute over the ownership or division of the house and fail to reach an agreement through negotiation, the people's court can, according to the litigation requests of the parties, combined with the purpose of the transfer, comprehensively consider factors such as the length of the marriage, the situation of living together and having common children, the fault in divorce, the size of the contribution to the family, and the market price of the house at the time of divorce, and decide that the house belongs to one of the parties, and determine whether the party obtaining the house should compensate the other party and the specific amount of compensation.
During the period before marriage or during the marriage, if one party transfers the registration of the house it owns to the other party or both parties, and during the divorce lawsuit, the two parties have a dispute over the ownership or division of the house and fail to reach an agreement through negotiation, if the marriage has lasted for a relatively short time and the donor has no major fault, the people's court can, according to the litigation requests of the parties, decide that the house belongs to the donor, and combined with the purpose of the transfer, comprehensively consider factors such as the situation of living together and having common children, the fault in divorce, the size of the contribution to the family, and the market price of the house at the time of divorce, and determine whether the party obtaining the house should compensate the other party and the specific amount of compensation.
If the donor has evidence to prove that the other party has committed fraud, coercion, seriously infringed on the legitimate rights and interests of the donor or its close relatives, or failed to fulfill the obligation of support to the donor, etc., and requests to revoke the civil legal acts stipulated in the previous two paragraphs, the people's court shall support it according to law.
