Division of Real Estate of Which the Down Payment Is Made by Either Spouse
Division of Real Estate of Which the Down Payment Is Made by Either Spouse
If either spouse purchases a real estate with a bank loan and makes the down payment therefor before marriage, the outstanding amount of the bank loan is paid with their community property, and the real estate remains in the name of the spouse borrowing the bank loan and making the down payment, their dispute over the ownership of the real estate should first be resolved through friendly negotiation.
If they fail to reach an agreement in respect of the ownership and division of such real estate, the ownership of the real estate should remain vested in the spouse in whose name the real estate is registered. But such spouse is obligated to repay the outstanding installments of the bank loan and repay the portion of the repaid amounts that should be the other spouse’s personal property.
If neither spouse claims the ownership of the real estate, they can, or may request the court to, sell the real estate by auction or on consignment or otherwise, and divide the proceeds from the sale. In such a case, the down payment and the installments repaid before their marriage should be the personal property of the spouse who has paid such moneies, and the installments repaid during their marriage should be deemed their community property, regardless of the sources of such moneies.
The appreciation or depreciation of the real estate, if any, should be distributed according to the principles stated above.
Robert Zhang 
Steve Li 