Community property (夫妻共同财产, often translated as "marital joint property") is the default property regime for married couples in China. Under Article 1062 of the PRC Civil Code, property acquired by either spouse during the marriage generally belongs to both of them jointly, unless the couple has agreed otherwise in writing. It includes wages and bonuses, income from production and business operations, investment income, income from intellectual property, and property inherited or received as a gift during the marriage, unless the will or gift clearly designates it to one spouse only.
Why it matters
Community property is the pool that gets divided on divorce. It does not matter whose name is on the salary slip, the bank account or, in many cases, the property certificate: if it was acquired with marital income, it is presumed to be shared. Both spouses have equal rights to manage and dispose of it. Where the couple cannot agree, the court divides it, taking into account the interests of the children, the wife and the no-fault party (Article 1087). Anything outside this pool is separate property, so classification is usually the first battle in a property dispute.
How it works in practice
A British engineer and his Chinese wife married in Shenzhen in 2016. He brought savings into the marriage; during the marriage both worked and they bought a flat registered in her name, paying the mortgage from both salaries. On divorce, his pre-marital savings that could be traced remained his separate property, but the flat, the salary savings and his shares in a start-up acquired during the marriage were all treated as community property and divided. Tracing records made the difference.
Common mistakes
- Assuming property registered in one spouse's name belongs only to that spouse
- Mixing pre-marital funds with marital income until they can no longer be traced
- Forgetting that investment returns and business income earned during the marriage are usually shared
- Overlooking overseas bank accounts, pensions and shares, which can also be community property
- Transferring or hiding assets before divorce, which can lead to a smaller share (Article 1092)