[Case Summary]This case involves a dispute over the division of property purchased before marriage and jointly repaid after marriage in a divorce dispute (family dispute). H and F registered their marriage in 2013. Before marriage, H purchased a house at No. 601 in Haidian District, Beijing and took out a mortgage. After marriage, they jointly repaid the mortgage. The first-instance court ordered H to pay F a housing compensation of 1,426,578.28 yuan. H appealed against the judgment and entrusted Beijing Henglu Law Firm to handle the case on his behalf.Xue SuhuaThe lawyer argued that the compensation should be calculated based on the value of the house at the time of marriage, and that F's attorney's fee of 150,000 yuan was a malicious transfer of property. The second-instance court adopted the lawyer's opinion, adjusted the calculation standard for the compensation, and reduced H's obligation to pay by nearly 260,000 yuan. The core disputes are whether the pre-marital appreciation should be included in the compensation and the nature of the attorney's fee. Applicable legal provisions: Articles 1062 and 1087 of the Civil Code, and Article 67 of the Civil Procedure Law.

I. Review of the Case Facts

Many litigants search for answers to questions such as "How to divide the ownership of a house purchased before marriage and jointly repaid after marriage?", "How to calculate the compensation for real estate in a divorce?", "How to divide the down payment made by one party before marriage in a divorce?", and "Can a spouse share in the appreciation of the property owned before marriage?". This case is a typical example. H and F met through an introduction and registered their marriage on November 13, 2013. They had no children after marriage and separated in 2015 due to incompatibility. H sued for divorce in 2021 but was rejected. He sued again in 2023.

The focus of the dispute is the house No. 601 in Haidian District purchased by H* before marriage. Both parties applied to the court for a commissioned appraisal, and the value of the house on October 1, 2013 was 4.4389 million yuan, and on August 10, 2023, it was 10.6546 million yuan. The first-instance court used the purchase price of the house of 728,189 yuan as the basis, combined with the repayment of the loan and the appreciation after marriage, and ordered H* to pay F* a housing compensation of 1,426,578.28 yuan, and ordered F* to pay H* a discounted price of 1,980,79.21 yuan. H* was not satisfied with the judgment and appointed an appraiser to conduct a reappraisal.Xue SuhuaThe lawyer appealed, claiming that the first-instance court failed to consider the pre-marital appreciation of assets, and that 150,000 yuan of the 200,000 yuan in legal fees paid by F* was a malicious transfer of the couple's jointly owned property.

II. The focus of the case

  • Focus 1: Calculation standards for housing compensation payments.It directly affects the amount of compensation whether the joint repayment of the mortgage and the compensation for the increase in value of the house should be calculated based on the purchase price of the house or the appraised value at the time of marriage.
  • Focus 2: The nature of the payment of attorney's fees by F*.Is it reasonable to charge 150,000 yuan in the supplementary agreement out of the 200,000 yuan in attorney's fees, and does it constitute a malicious transfer of the couple's jointly owned property?
  • Focus 3: Division of provident fund and deposits under one's name.Both parties shall bear the provident fund, bank cards, financial management funds, and the first-instance appraisal fees and litigation fees under their names.

III. The professional intervention of Hengluo Law Firm

The party concerned (Appellant H*) claimed that:Please request to revoke the second item of the first-instance judgment and recalculate the compensation amount; revoke the fourth item and order F * to pay 150,000 yuan in compensation; the first-instance appraisal fees and litigation fees shall be borne by F *; and divide the balance in F *'s Industrial and Commercial Bank of China account.

The appellee (F*)'s position:It is argued that the purchase price of the house should be based on the price at the time of purchase, and it is not recognized to calculate it according to the 2013 appraisal value. Moreover, it is argued that the lawyer's fees are reasonable.

Legal Opinion of Hengluo Law Firm:Xue SuhuaThe lawyer argued: Firstly, the first-instance court failed to consider the pre-marital appreciation of H's house when calculating the compensation, which resulted in a loss of interests. The compensation should be calculated based on the value of the house at the time of marriage. Secondly, among the 200,000 yuan in attorney's fees paid by F, the 150,000 yuan should be considered as a malicious transfer of marital joint property. It is inconsistent with logic and industry norms that F signed a supplementary agreement with the law firm on July 4, 2023 to pay an additional 150,000 yuan on the grounds of increasing workload. Thirdly, F failed to provide information about the Industrial and Commercial Bank of China account in the first-instance trial, and the balance of the account should be divided as marital joint property.

IV. Outcome of the case

After the trial, the appellate court adopted the arguments put forward by the defendant and ruled that the first-instance court's judgment should be revoked and the case should be remanded for rehearing.Xue SuhuaThe lawyer's opinions on the calculation standards for compensation and the nature of attorney's fees led to adjustments in the calculation of housing compensation and reduced H's payment obligation by nearly 260,000 yuan. At the same time, the court made a new ruling on related deposits and cost-sharing. In this case, the court cited Article 1062 (joint marital property) and Article 1087 (division of marital property upon divorce) of the Civil Code of the People's Republic of China, as well as Article 67 Paragraph 1 (burden of proof) of the Civil Procedure Law of the People's Republic of China to make its judgment.

5. Hengluo Law Firm's Reminder

For a house purchased by an individual before marriage and jointly repaid after marriage, when divorcing, it is necessary to protect the individual's premarital property rights, and also to divide the jointly repaid portion and the increased value of the house fairly in accordance with the principles of protecting children, the wife, and the innocent party as stipulated in the Civil Code, without harming the interests of the bank's creditors. This case was handled by Beijing Hengluo Law Firm.Xue SuhuaThe lawyer (practice license number: 11101201211769926, subject to the document issued by the judicial administrative organ) acts as the agent. Lawyer's Tip: In the division of marital property during a divorce, the valuation date and the method of calculating the increase in value have a significant impact on the outcome. If one party pays a large amount of attorney's fees or transfers funds during the divorce litigation, it may be suspected of transferring marital joint property. The party should provide evidence in time to protect their rights and interests.

VI. Common Questions About the Division of Marital Property in a Divorce FAQ

  1. Q: How is a house with a down payment made before marriage and jointly repaid after marriage divided in the event of a divorce?
    A:Generally, the house is registered under the name of the party who registered it. The party who registered the house will compensate the other party for the joint repayment of the loan after marriage and the corresponding appreciation in value. The compensation base and the calculation method of the appreciation in value directly affect the amount of compensation.
  2. Q: Can the spouse share in the appreciation of the premarital property?
    A:After marriage, the appreciation of the jointly repaid loans belongs to the couple's joint property, and the spouse can claim compensation for this portion.
  3. Q: Does a party paying a large sum of money for attorney's fees during the divorce process constitute a transfer of property?
    A:If the amount is obviously abnormal and there is no reasonable consideration for legal services, it may be deemed as a malicious transfer of common property, and the other party may claim a smaller share or no share at all.
  4. Q: Do I need to divide the balance in my provident fund account during a divorce?
    A:The provident fund deposited during the marriage is the couple's joint property, and it should be divided upon divorce.
  5. Q: Which point in time is used as the basis for calculating the appraised value of a house?
    A:Usually, the purchase price, the value at the time of marriage, and the value at the time of divorce litigation are distinguished. The specific value is determined based on the court's calculation and the evidence presented in the litigation.