Property Division in Divorce

Property division in divorce in China

After the children, money is usually the biggest source of conflict in a divorce. Property division in divorce in China follows a clear framework in the Civil Code, but the real disputes are about the details: who paid for the flat, whether a parent's contribution was a gift or a loan, what a company is worth, and whether assets have been moved. This page explains the rules as of 2026 and how our lawyers and in-house auditor help clients reach a fair result.

Community property and separate property

Community property (Art. 1062)

Unless the spouses have agreed otherwise, the following acquired during the marriage are generally community property (夫妻共同财产):

• wages, bonuses and other remuneration for work
• income from production, business and investment
• income from intellectual property
• property inherited or received as a gift during the marriage, unless the will or gift designates it to one spouse only
• other property that should be jointly owned

Separate property (Art. 1063)

• property owned by one spouse before the marriage
• compensation or damages received by one spouse for personal injury
• property that a will or gift designates to one spouse only
• items for one spouse's personal use
• other property that should belong to one spouse

Marital property agreements

Spouses may agree in writing on how property acquired before or during the marriage is owned (Art. 1065). A valid prenuptial or postnuptial agreement generally binds both spouses. International couples may also choose the applicable law for property within legal limits.

How property is divided

Property is divided by agreement. If the spouses cannot agree, the court decides according to the actual circumstances, taking into account the interests of the children, the wife and the no-fault party (Art. 1087). Equal division is a common starting point, but it is not automatic.

The family home

The house is often the most valuable and emotional asset. Common questions include:

• Bought before marriage by one spouse, with a mortgage repaid during the marriage: the house may remain that spouse's, but the other spouse may be entitled to a share of the jointly repaid loan and related increase in value.
• Bought during the marriage: generally community property, regardless of whose name is on the title, unless there is an agreement or it was a designated gift.
• Parents' contributions: the SPC's Interpretation II on Marriage and Family (effective 1 February 2025) clarifies, in general terms, how houses bought with parents' contributions are treated. Factors can include whether the contribution was a gift or loan, to whom it was made, whose name is on the title, the length of the marriage and whether there are children. The outcome is very fact-specific, so evidence of the payment and any written terms matters.

See our article who gets the house in a divorce in China.

Company shares and businesses

Where a spouse holds shares or runs a business, the court must decide how to value and divide the interest. Options include transferring shares (subject to other shareholders' rights), or one spouse keeping the shares and compensating the other. Valuation often requires financial analysis. Our in-house auditor works on valuations, profit tracing and reviewing company accounts.

Debts

Debts incurred by both spouses jointly, or by one spouse for daily family needs, are generally marital debts. Debts incurred by one spouse in their own name beyond daily family needs are generally that spouse's own, unless the creditor proves they were used for the family or based on joint intention. Fabricating debts to reduce the other spouse's share is penalised.

Overseas assets

A Chinese court can take overseas assets into account in dividing community property, but enforcing a Chinese judgment abroad depends on the law of that country. Proving foreign assets may require apostilled records. Where a spouse has assets in Hong Kong, the 2022 Arrangement can help recognition of matrimonial property orders. Early planning matters.

Compensation and damages

• Housework compensation (Art. 1088): a spouse who took on more responsibility for raising children, caring for elderly relatives or assisting the other's work may claim compensation.
• Economic assistance (Art. 1090): a spouse in financial difficulty may receive appropriate help.
• Divorce damages (Art. 1091): the no-fault spouse may claim damages for bigamy, cohabitation with another person, domestic violence, maltreatment or desertion, or other serious fault.
• Gifts to a third party: in general terms, Interpretation II allows the recovery of community property given away to a third party, for example a lover.

Hiding assets: the consequences

A spouse who conceals, transfers, sells off or destroys community property, or fabricates debts, may receive a smaller share or no share of that property (Art. 1092). A spouse who discovers hidden assets after the divorce may also bring a claim to divide them. See hidden asset tracing.

How we help

• Identifying and classifying all assets and debts
• Tracing and valuing businesses, shares and income with our in-house auditor
• Applying for property preservation to stop assets moving
• Negotiating settlements and drafting clear property terms
• Litigating property disputes, including house and parental contribution cases
• Coordinating overseas and Hong Kong assets

What to do next

Make a list of known assets and debts and collect any documents you can lawfully access. Then contact us for a free 30-minute consultation, or read our guide to dividing property in a divorce in China.