In today's society, the topic of real estate is unavoidable in the national economy and people's livelihood of ordinary citizens. Among them, when parents contribute to buying a house for their children, during the children's divorce, is the contribution a single-party gift to the children or marital common property? The disputes on this issue have been increasing in recent years. So after the 'Civil Code' officially took effect on January 1, 2021, what are the regulations regarding property division during divorce for house purchases with different contribution situations?

On January 1, 2021, the Supreme People's Court's Interpretation on the Application of the 'Civil Code of the People's Republic of China' - Volume on Marriage and Family (I) officially took effect, which made significant amendments regarding the determination of parental contributions for house purchases after children's marriage registration. The original Judicial Interpretation II of the Marriage Law (already expired) stipulated: "Such contribution shall be deemed a gift to both spouses, unless the parents explicitly express it as a gift to only one party"; Judicial Interpretation III of the Marriage Law (already expired) stipulated: "If the property right is registered only under the child's name, it shall be deemed a single-party gift to their own child." However, the current Interpretation (I) of the Marriage and Family Volume of the 'Civil Code' stipulates: "If there is an agreement, it shall be handled according to the agreement; if there is no agreement or the agreement is unclear, it shall be presumed as a gift to both spouses."In other words, after the implementation of this judicial interpretation, for post-marriage house purchases where parents contribute, if there is no agreement or the agreement is unclear, regardless of whether it is full contribution or partial contribution, and regardless of whether it is registered under one spouse's name or both spouses' names, it shall be primarily presumed as marital common property, jointly owned by the spouses.

Legal Interpretation Case:"Zhang Xiaoqin's Divorce Property Dispute Case"

In June 2021, Zhang Xiaoqin (pseudonym) and Li Xiaojun (pseudonym), who had known each other for two months, registered their marriage at the Minhang District Civil Affairs Bureau in Shanghai, officially becoming husband and wife. Since both spouses had just entered the workforce and had not yet accumulated savings, they lived in rented housing for a long time. Zhang Xiaoqin's parents, concerned that their daughter had no security living in rented housing for an extended period, sold their self-occupied three-bedroom house and purchased two smaller apartments, one for their own residence and the other as a wedding gift to their daughter Zhang Xiaoqin. Originally, the couple had privately communicated with their parents that the house was a wedding gift from Zhang Xiaoqin's parents to their daughter alone, belonging to Zhang Xiaoqin's personal property, and that only Zhang Xiaoqin's name would be registered on the property certificate. Li Xiaojun and his parents both expressed their understanding. In October 2021, due to emotional incompatibility, both Zhang Xiaoqin and Li Xiaojun unanimously decided to divorce, but during the process of divorce by agreement, they were unable to reach a consensus on property division. Regarding the house they currently lived in (i.e., the property gifted to Zhang Xiaoqin by her parents), Li Xiaojun's family believed that although the down payment was contributed by his parents, Li Xiaojun had subsequently made mortgage payments on the house, so it should be considered marital common property, and should be equally divided between the two parties. As for Zhang Xiaoqin's claim that they had reached an agreement regarding the property rights of the house, Li Xiaojun stated that they had not signed any written agreement, and he did not acknowledge having made any such promise.

Later, the two parties filed a lawsuit regarding post-divorce property disputes to the court. After trial, the court ruled that the house belonged to marital common property and should be jointly divided by the two spouses.

Lawyer's Legal Interpretation:

From this case, we can see that regarding the determination of parental contributions for house purchases, there are already relatively clear judicial handling opinions after the 'Civil Code' officially took effect:

1. If parents contribute to purchasing a house for their child after marriage and the house is registered under only one person's name, in the absence of a clear agreement, the court shall presume it belongs to marital common property

In this case, although Zhang Xiaoqin's parents had informed all parties when purchasing the house for her, clearly stating that the house was gifted to Zhang Xiaoqin alone and had nothing to do with her spouse, and all parties expressed their understanding, due to the lack of relevant legal knowledge, her parents did not prepare a written document explicitly stating that it was a gift to their daughter alone. This resulted in the trial judge being difficult to persuade during the divorce property lawsuit. If according to the provisions of Judicial Interpretation III of the Marriage Law (already expired), "if the property right is registered only under the child's name, it shall be deemed a single-party gift to their own child," the house could have been recognized as Zhang Xiaoqin's personal property. However, after the 'Civil Code' and related judicial interpretations took effect, according to the latest laws and regulations, if there is no agreement or the agreement is unclear, it shall be primarily presumed as marital common property.Based on this, in this case, Zhang Xiaoqin's family lost half of the house assets due to the lack of relevant legal knowledge, which is regrettable.

2. Regarding the Determination of "Clear Agreement"

Based on the above case, we can see that to avoid the risk of parental contributions for house purchases being determined as marital common property, the most important thing is to have a clear prior agreement. Therefore, we recommend that for post-marriage house purchases where parents contribute, it is best for the parents, children, and the children's spouse to jointly sign a written agreement, clearly stipulating whether the parental contribution is a loan or a gift. If it is a gift, it must be clearly agreed whether it is a gift to the child alone or a gift to both the child and the child's spouse. If it is a loan, the interest rate and repayment period should be clearly agreed upon. Do not be like Zhang Xiaoqin's parents in this case, who, due to the relationship with their son-in-law's family, were too embarrassed to put it in writing, leading to property disputes after divorce due to the lack of a clear prior agreement on property.

3. Special Attention

If parents contribute to purchasing a house but do not clearly express it as a gift, it is generally regarded as a loan. In this case, if the property is common property, the debt is a joint marital debt. If the property is one party's personal property, the debt is generally recognized as that party's personal debt.