This matter has many young couples on edge, and it has also caused great concern for both sets of parents. The down payment was scraped together from the parents' savings, but the mortgage is jointly repaid by the couple. If it comes to a divorce, whose house is it? Is it considered a gift to one party by the other, or a joint gift to the young couple? Da Hua Family Law Attorneys have sorted out 4 common situations for you to see which one applies to your situation.

 
  First: The parents explicitly state "only for my child," and there is written evidence. For example, a promissory note, a gift agreement, or a bank transfer note with a remark "only for my child's down payment for a house." In this case, the down payment belongs to the individual property of the child. In the event of a divorce, the down payment is deducted first, and the remaining value (including the joint repayment after marriage and the corresponding appreciation) is then divided as joint property. However, be aware that an oral statement like "this money is for my son" is difficult to be recognized in court.
  Second: The parents provide the down payment, but do not explicitly state for whom, and no written documents are created. According to the "Civil Code," if parents provide a down payment for a house after marriage without any special agreement, it is considered a gift to both parties. That is to say, the down payment and the house will be regarded as joint property. In the event of a divorce, the house is divided in half after deducting the remaining loan from the market value. Many parents think that the money they paid should naturally go to their children, but they suffer because of "not leaving evidence."
  Third: The parents pay the full amount and register the property in their child's name. If the parents pay the full amount for a house after marriage and the property certificate is only in the child's name, and there is no explicit statement of gift to both parties, it is generally considered a gift to the child alone, belonging to the individual property of the child. In the event of a divorce, the other party has no right to divide it. However, if the spouse's name is added to the property certificate, it becomes joint property.
  Fourth: The parents provide the down payment, but the mortgage is paid by the parents alone. This situation is quite special. If it can be proven that the monthly mortgage is transferred by the parents and marked "repayment on behalf of," and has never used joint property, the house may be considered the individual property of one party. However, in practice, the difficulty of evidence is great, and it is recommended to keep all transfer records in advance.
  Finally, a reminder: when the parents provide the funds, it is best to sign a written agreement stating "the down payment is only a gift to my child and has nothing to do with the spouse." If it is difficult to write due to face, add a remark during the transfer, or keep a recording, chat records. It is also important to clarify this part in the divorce agreement to avoid disputes in the future.
  Have you understood after reading this? If you have any questions or need legal assistance, please feel free to contact us online anytime.