A Study on the Identification of the Nature and Rules of Property Division of Parents’ Capital Contribution to House Purchase for Married Children

Abstract

With the skyrocketing housing prices, adult children generally cannot afford to buy a house on their own. It has become a social norm for parents to fund house purchases for their married children. However, influenced by traditional family ethics, parents and children seldom make detailed agreements on such contributions. This gives rise to disputes over property division when the children get divorced. The core questions include whether such contributions constitute gifts or loans, how to allocate the burden of proof, and the nature of the debt if the contribution is deemed a loan. Since China’s laws do not provide explicit provisions defining the nature of this conduct, a one-size-fits-all approach should be avoided. Courts shall adjudicate cases based on specific facts, fully respect parents’ true intentions, and strictly apply the principle of “he who asserts must prove" to allocate the burden of proof.