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Should a house purchased with personal property after marriage be recognized as joint property or personal property of the husband and wife?

author:Ping An Jilin
Should a house purchased with personal property after marriage be recognized as joint property or personal property of the husband and wife?

Yang X B v. Yang X A A property dispute after divorce

-- A house purchased with personal property after marriage shall be recognized as joint property or personal property of the husband and wife

Summary of the trial

  "Joint property of husband and wife" refers to the property acquired by both husband and wife or one of them during the existence of marriage, unless otherwise provided by law or otherwise agreed by the husband and wife, belonging to the husband and wife. The division of property in divorce cases only refers to the joint property of the husband and wife, and the personal property and other property of the husband and wife are not included in the division. Property owned by one of the spouses shall not be converted into joint property of the husband and wife as a result of the continuation of the marital relationship. During the existence of the marital relationship, the real estate such as houses purchased by one of the spouses with personal property shall still belong to the individual and shall not belong to the joint property of the husband and wife.

Basic facts of the case

  Yang X B and Yang X A met in September 2001 and registered their marriage on October 15, 2003, and both parties remarried. No children after marriage. In the common life after marriage, the relationship between the husband and wife is tense due to the differences in personality and temperament and the improper ways and means of dealing with the daily conflicts of the husband and wife. On April 9, 2014, Yang Mouyi filed a divorce lawsuit with the court of first instance on the grounds that the relationship between the husband and wife had broken down.

  After the trial, the court ascertained that during the existence of the marital relationship, the parties purchased a Panasonic plasma TV, a Panasonic washing machine, a Panasonic refrigerator, a Baihui washing machine, and a ××-storey ×× house located in ×× ×× Community, Kunming City. During the existence of the marital relationship, the husband and wife jointly incurred a debt of 340,000 yuan. In addition to confirming the facts ascertained in the original review, the Yunnan Provincial High People's Court retried this case, based on a series of new evidence submitted by Yang X A and Yang X B during the retrial trial, and combined with the evidence included in the first instance, it was ascertained that on September 18, 2006, Yang X A sold his house at No. ×× ×× Street before marriage, and the proceeds from the sale of the house of 200,000 yuan were deposited into his fixed account with China Construction Bank on the same day, and after the expiration on March 20, 2007, it was transferred to another current account of the bank, and was used to pay for the purchase ×× on the same dayThe down payment for ×× ××-storey ××-room house in the community.

  On November 14, 2014, the Wuhua District People's Court of Kunming City rendered the (2014) Wu Fa Xi Min Chu Zi No. 175 Civil Judgment: 1. Permit Yang X B and Yang X A to dissolve their marriage relationship; 2. Joint property of husband and wife: Except for one Panasonic plasma TV and one Panasonic washing machine, which are owned by Yang Mouyi, the rest of the Panasonic refrigerator and one Baihui washing machine are owned by Yang Moujia; A set of ××-storey ×× houses located in ×× ×× Community, Kunming City, is owned by Yang X A, and Yang X A shall pay Yang X B a one-time discount of 2,047,500 yuan within 30 days after this judgment takes effect; 3. The joint debt of the husband and wife is 340,000 yuan, and Yang X B and Yang X A are each responsible for paying off 170,000 yuan; 4. The other litigation claims of both parties are rejected. The acceptance fee for this case is 20,525 yuan, and Yang X B and Yang X A are each to bear 10,262.50 yuan. Yang Mouyi was not satisfied and appealed. On April 17, 2015, the Intermediate People's Court of Kunming City, Yunnan Province, rendered the (2015) Kun Min Er Zhong Zi No. 3 Civil Judgment: 1. Item 1 of the (2014) Wu Fa Xi Min Chu Zi No. 175 Civil Judgment of the Kunming Wuhua District People's Court is upheld, that is, "1. Plaintiff Yang X B and defendant Yang X A are allowed to dissolve their marriage relationship"; 2. Revoke items 2, 3, and 4 of the (2014) Wufa Xi Min Chu Zi No. 175 Civil Judgment of the Wuhua District People's Court of Kunming City, that is, "2. Joint property of husband and wife: Except for one Panasonic plasma TV and one Panasonic washing machine, which are owned by Yang Mouyi, the rest of the Panasonic refrigerator and one Baihui washing machine are owned by Yang Moujia; A set of ××-story ×× houses located in ×× ×× Community, Kunming City, is owned by the defendant Yang X A, and Yang X A shall pay Yang X B a one-time discount of 2,047,500 yuan for the house within 30 days after this judgment takes effect; 3. The joint debt of the husband and wife is 340,000 yuan, and Yang X B and Yang X A are each responsible for paying off 170,000 yuan; 4. Reject the other claims of the plaintiff and the defendant"; 3. Joint property of husband and wife: 1 Panasonic plasma TV and 1 Panasonic washing machine are owned by Yang Mouyi. 1 Panasonic refrigerator and 1 Baihui washing machine are owned by Yang Moujia; One house located in ×× ××-storey ×× in the ×× Community of Kunming City is owned by Yang Moujia, and Yang Moujia shall pay Yang Mou B 3,250,000 yuan in compensation for the house within 30 days after this judgment takes effect; 4. The joint debt of the husband and wife is 340,000 yuan, which is repaid by Yang Moujia; 5. Reject Yang's other litigation claims. The first- and second-instance trial case acceptance fees totaled 41,050 yuan, and Yang X B and Yang X A each bear 20,525 yuan.

  The Yunnan Provincial People's Procuratorate counter-appealed that the Kunming Intermediate People's Court's (2015) Kun Min Er Zhong Zi No. 3 Civil Judgment erred in determining the facts and applying the law. The reasons are as follows: According to Article 19 of the Interpretation (I) of the Supreme People's Court on Several Issues Concerning the Application of the Marriage Law of the People's Republic of China, "the property owned by one of the husband and wife as provided for in Article 18 of the Marriage Law shall not be converted into the joint property of the husband and wife due to the continuation of the marital relationship. Unless otherwise agreed by the parties" and Article 5 of the Interpretation (III) of the Supreme People's Court on Several Issues Concerning the Application of the Marriage Law of the People's Republic of China, "the income generated by the personal property of one of the husband and wife after marriage, except for fruits and natural appreciation, shall be recognized as the joint property of the husband and wife", Yang Moujia sold the house located at No. ××, ××××No. ×× ×× Street, Kunming City, and paid a down payment of 200,000 yuan for the ×× ××-story ×× room house in the ×× community. After that, Yang Moujia borrowed another 340,000 yuan to pay off the mortgage of the house in a lump sum, and the down payment of 200,000 yuan and the natural appreciation in the process of purchasing the house involved in the case belonged to Yang Moujia's personal property. The court of second instance erred in the application of law by determining that the house involved in the case was the joint property of the husband and wife only because it was purchased after marriage, and confirmed that the disputed house belonged to Yang X A, and then Yang X A paid 50% of the current value of the house at issue of 6,500,000 yuan, or 3,250,000 yuan, as compensation. On June 19, 2018, the Yunnan Provincial High People's Court rendered the (2017) Yun Min Zai No. 99 Civil Judgment: 1. Item 1 of the (2015) Kun Min Er Zhong Zi No. 3 Civil Judgment of the Intermediate People's Court of Kunming City, Yunnan Province is upheld, that is, "1. Item 1 of the (2014) Wu Fa Xi Min Chu Zi No. 175 Civil Judgment of the Kunming Wuhua District People's Court is upheld, that is, '1. Plaintiff Yang X B and defendant Yang X A are allowed to dissolve their marriage relationship'"; 2. Revoke items 2, 3, 4, and 5 of the (2015) Kun Min Er Zhong Zi No. 3 Civil Judgment of the Intermediate People's Court of Kunming City, Yunnan Province, and items 2, 3, and 4 of the (2014) Wu Fa Xi Min Chu Zi No. 175 Civil Judgment of the Wuhua District People's Court of Kunming City, Yunnan Province; 3. Joint property of husband and wife: one Panasonic plasma TV and one Panasonic washing machine are owned by Yang Mouyi, and one Panasonic refrigerator and one Baihui washing machine are owned by Yang Moujia; A set of ××-storey ×× houses located in ×× ×× Community, Kunming City, Yunnan Province, owned by Yang X A, and Yang X A paid Yang X B a one-time discount of 2,047,500 yuan for the house within 30 days of the effective date of this judgment; 4. The joint debt of the husband and wife is 340,000 yuan, which is repaid by Yang Moujia; 5. Reject Yang's other litigation claims. The total acceptance fees for the first and second instance cases in this case are 41,050 yuan, of which 20,525 yuan is borne by Yang X B and 20,525 yuan is borne by Yang X A.

Grounds for the Trial

  The effective judgment of the court held that Article 209 of the Civil Procedure Law of the People's Republic of China stipulates: "The parties shall not apply for a retrial of a judgment or mediation document on the dissolution of marriage that has already taken legal effect. Therefore, this case only retried the part of the property division between the two parties. According to Article 19 of the Interpretation (I) of the Supreme People's Court on Several Issues Concerning the Application of the Marriage Law of the People's Republic of China, "the property owned by one of the husband and wife as provided for in Article 18 of the Marriage Law shall not be converted into the joint property of the husband and wife due to the continuation of the marital relationship. Unless otherwise agreed by the parties", property jointly purchased by both parties during the existence of the marital relationship shall be deemed to be the joint property of the husband and wife; If it is purchased by one of the parties before the marriage or with personal property after the marriage, it shall still belong to the individual and shall not be the joint property of the husband and wife. A series of additional evidence submitted by Yang Moujia in the retrial trial corroborated each other with the evidence included in the first instance, forming an evidentiary chain, confirming that Yang Moujia sold his house at No. ×× ×× Street before marriage, and used the proceeds from the sale of the house to pay for the down payment of the purchase of ×× ××-storey ××-room house in the ×× community. Although Yang did not recognize it, he did not submit sufficient and effective evidence to refute it, nor did he provide evidence to prove the fact that the down payment was paid with the joint property of the husband and wife, and he could not clearly explain the source of funds and payment for the purchase of the ××××-story ××-room house in the ×× community. Based on the evidence collected in this case, it can be determined that 200,000 yuan of the purchase price of the ×× ××-story ××-room house in the ×× community was paid by Yang Moujia for disposing of his personal premarital property. If one party uses personal property to purchase a part of the house after marriage, this part of the property shall be recognized as personal property at the time of divorce, and its natural appreciation shall also belong to the individual. The first-instance judgment considered the actual circumstances of the case and awarded the house to Yang X A, and Yang X A compensated Yang X B half of the price after deducting the proportion of his personal property of 200,000 yuan in the purchase price and the corresponding value-added part. In the case that the second-instance judgment did not ascertain the fact that Yang Moujia paid for the purchase price with his personal property, that is, the fact that the judgment was changed was unclear and the application of law was improper, and the procuratorate's protest opinion was sustained.

  In addition, in view of the fact that both parties clearly recognized in the first-instance trial that the value of the ×× ××-story ×× house in the ×× community was 6,500,000 yuan, and Yang Moujia did not appeal against this finding of fact, and did not raise any objection in the second instance, the unilateral appraisal made by Yang Moujia in the retrial could not change the facts that he had confirmed in the original trial procedure, so the "Real Estate Appraisal Report" submitted by Yang Moujia was not accepted. On the issue of whether Yang X B should bear the debt of 340,000 yuan, before the judgment was pronounced after the trial of the first instance, Yang X A clearly stated in writing that he gave up the request for Yang X B to bear the joint debt of the husband and wife, and the expression of intent was made voluntarily by Yang X A and did not harm the interests of others, and in the retrial, Yang X A also expressed that he agreed to give up the request for Yang X B to bear the joint debts of the husband and wife on the basis of the first-instance judgment result, so the judgment that the court of second instance confirmed that the joint debt of 340,000 yuan was borne by Yang X A was not improper.

Associate indexes

  Article 205 of the "Civil Procedure Law of the People's Republic of China": Where the presidents of all levels of people's court discover that there are truly errors in that court's judgment, ruling, or mediation document that has already taken legal effect, and find that a retrial is necessary, they shall submit it to the adjudication committee for discussion and decision.

  Where the Supreme People's Court discovers that there is truly an error in a judgment, ruling, or mediation document of a local people's court at any level that has already taken legal effect, or a higher people's court's judgment, ruling, or mediation document that has already taken legal effect, it has the right to bring it to trial or order a lower people's court to retry it.

  Article 1063 of the Civil Code of the People's Republic of China The following property is the personal property of one of the husband and wife:

  (1) One party's premarital property;

  (2) Compensation or compensation received by one party for personal injury;

  (3) Property that is determined in a will or gift contract to belong to only one party;

  (4) Daily necessities for the exclusive use of one side;

  (5) Other property that shall belong to one party.

  (Article 18 of the Marriage Law of the People's Republic of China, which came into force on January 1, 1981, applies in this case)

  First instance: Kunming Wuhua District People's Court (2014) Wu Fa Xi Min Chu Zi No. 175 Civil Judgment (November 14, 2014)

  Second instance: Kunming Intermediate People's Court of Yunnan Province (2015) Kun Min Er Zhong Zi No. 3 Civil Judgment (April 17, 2015)

  Retrial: Yunnan Provincial High People's Court (2017) Yun Min Zai No. 99 Civil Judgment (June 19, 2018)

Source: China Popular Law