Insights

Can a fine imposed on a Ningbo party divide common property?

Ningbo Author：LuXu WANG

If one of the spouses is sentenced to a fine or ordered to refund compensation for a criminal offence, the court will execute the common property of the spouses, and the other spouse is worried that all the property will be executed, can he request the division of the common property during the marriage? The conclusion starts with the following: the imposition of a fine is not a legal cause for the division of common property within marriage as stipulated in article 1066 of the Civil Code, and the spouse cannot therefore request the division within the proposal. However, when the common property is executed, the court shall retain the share of the property of one spouse and only the share of the criminal-the fine is the criminal's personal debt and the spouse has no legal obligation to pay it. By understanding the two aspects—“restrictions on division during marriage” and “preservation of the execution share”—one can grasp the underlying logic for handling such cases.

1. Statutory grounds for dividing marital joint property

Article 1066 of the Civil Code stipulates that during the existence of the marital relationship, one of the spouses can request the people's court to divide the common property under any of the following circumstances: (1) One of the spouses has the behavior of concealing, transferring, selling, destroying, squandering the common property of the spouses or forging the common debts of the spouses, etc. which seriously damage the interests of the common property of the spouses; the (II) one has the legal maintenance obligation and needs to be treated, the other party does not agree to pay the relevant medical expenses. This provision adopts an exhaustive enumeration, stipulating that only these two circumstances permit property division during marriage.

If one party is sentenced to a fine, it belongs to the personal property punishment of the criminal behavior, neither belongs to the "behavior that seriously damages the common property interests of the husband and wife", nor belongs to the situation of "the legal maintenance obligor's serious illness". Therefore, the spouse cannot ask the proposal to divide the common property on the grounds of the other party being fined. The rules of Article 103 of the Civil Code on the division of common property cannot also be overruled by Article 1066-when the basis of the common relationship between husband and wife (marriage) has not been lost and there is no major reason, it cannot be divided at will.

2. Rules on the allocation of fines: individual debts and reserved shares.

The fine is sentenced and paid according to Article 52 and Article 53 of the Criminal Law. It belongs to the criminal's personal debt, and the spouse has no legal obligation to pay it. At the enforcement level, in accordance with the "Several Provisions of the Supreme People's Court on the Execution of the Property-Related Part of Criminal Judgments" (Fa Shi [2014] No. 13), the property-related parts of criminal judgments such as fines and orders for refunds and compensation shall be executed by the people's court of first instance; when executing the joint property of husband and wife, with reference to the provisions of the Supreme people's Court on the seizure, seizure and freezing of property in Civil Enforcement by the people's Court (as amended in 2020), the court may seal up, seize or freeze the common property, but shall promptly notify the co-owners and retain the share of the property of one spouse-only the share of the criminal party shall be executed, and all the common property shall not be executed. The practical caliber of Zhejiang court is also the same: according to the spirit of "answers to relevant legal questions on the case that one of the husband and wife is the debtor in the implementation of effective legal documents" passed by the judicial committee of Zhejiang higher people's court on January 27, 2014, the property under the personal name of the person subject to execution shall be executed in the case of personal debt; if the personal property is insufficient to pay off, the share of the joint property of the husband and wife belonging to the person subject to the person subject to the person can be executed (such execution), if the property registered in the name of the other spouse is common property, the corresponding share may also be executed in accordance with the law. During enforcement, it is also necessary to reserve the funds required for the living expenses of the person subject to enforcement and their dependent family members.

3. Detailed scenarios and steps for the spouse to cope

  1. Enforcement of a fine involving jointly owned marital property: The court may seize and auction the jointly owned property, but it must notify the spouse. The spouse may, within the prescribed period, either reach an agreement with the other party on the division of the property or file a partition action to determine their share, and the court shall, accordingly, reserve that share.
  2. Registered solely in the name of one spouse, but actually constitutes joint property.: The spouse must prove that it is the common property of the husband and wife (the time of marriage, the source of capital contribution and the time of house purchase), so as to avoid being regarded as the personal property of the person subject to execution.
  3. Coexistence of a fine and an order to make restitution: The order to make restitution shall be enforced first, with priority given to compensating the victim; any shortfall in the restitution shall then be satisfied by enforcing the fine. The rule reserving the spouse’s share applies equally.
  4. The marital property has been fully divided: If the divorce judgment or agreement has already allocated the property, the court may only enforce execution against the portion attributable to the criminal defendant.
  5. Spousal voluntary payment of a fine: This constitutes an exercise of one’s own rights and does not affect the share that the spouse is legally entitled to retain; however, after making the payment, the paying spouse generally cannot seek reimbursement from the other party, so caution is advised.

The response of the spouse after receiving the enforcement notice: first, to understand the content of the criminal judgment and the enforcement court, and to clarify the amount of fine and the subject of enforcement; second, to sort out the scope of the common property of husband and wife, and to distinguish the common property from the personal property; third, to submit a written enforcement objection to the enforcement court, claiming to retain their share; fourth, to file an enforcement objection or analysis lawsuit when necessary, and confirm the share; fifth, to retain the necessary expenses of family life and support obligations to prove the material, advocate the retention of necessary living expenses.

4. Analysis of Common Misconceptions

Misconception 1: Being sentenced to a fine entitles one to request a division of marital property during the marriage.Correct answer: A criminal fine is not a statutory ground for dividing marital property during marriage as stipulated in Article 1,066 of the Civil Code.

Misconception No. 2: The court can enforce execution against all marital property. Correct solution: the property share of one spouse shall be reserved during execution, and only the corresponding share of the criminal party shall be executed.

Misconception 3: The spouse must pay the fine on behalf of the other party.Correct answer: A fine is a personal debt, and the spouse has no legal obligation to pay it on one’s behalf; voluntary payment constitutes a disposition of one’s own rights.

Misconception 4: Property registered in the spouse’s name is absolutely safe.Correct answer: If the property is in fact marital joint property, the court may still, in accordance with the law, enforce execution against the portion belonging to the judgment debtor; the spouse must provide evidence and assert their right to retain their share.

5. Procedural details of enforcement objections and property division litigation

If one of the spouses believes that the execution infringes his share of property, the relief procedure has its sequence and duration: First, after receiving the execution notice or finding that the property has been sealed up, he should first submit a written objection to the execution court, stating that it is the joint property of the husband and wife and requesting to reserve his share; if he has any objection to the execution itself, he should submit it before the end of the execution procedure. Second, if you are not satisfied with the ruling of objection and involve disputes over entity rights (such as ownership of shares), you can file an enforcement objection lawsuit or a property analysis lawsuit within the statutory time limit to request confirmation of the shares. During the litigation on division of common property, the court generally suspends the execution of the property and resumes it after the share is determined-this is the key window for spouses to "grab time. Third, with respect to the disposition of jointly owned property by the executing court, it typically first facilitates a negotiated division (subject to the creditor’s approval); if no agreement is reached, it proceeds either to partition the property or directly auctions it off and sets aside the portion of the proceeds to which the spouse is entitled.

In the details of the procedure, it is suggested to prepare three types of materials: marriage certificate (proving the marriage relationship and common property basis), common property ownership registration materials (real estate registration inquiry form, house purchase contract, capital contribution certificate, which proves that they are jointly purchased after marriage), and necessary expenditure certificate for family life (proving that living expenses need to be retained). In cases where enforcement clearly exceeds its scope and erroneously freezes the spouse’s premarital personal property, it is even more important to promptly file an objection to avoid unintended harm.

6. Prevention and planning for family asset arrangement

The execution of criminal fine exposes the risk of "no distinction between public and private" of family property. There are three levels of preventive arrangements: firstly, a written property agreement can be made before or during marriage in accordance with Article 1065 of the Civil Code to clarify the scope of their respective property and common property-the agreement is effective internally, but it can not damage the interests of creditors for the purpose of evading debts, otherwise it will not be effective for creditors; secondly, the property and vehicle purchased by the joint capital shall retain the capital contribution certificate, so as to avoid being executed as the personal property of the executed person as a whole; Third, when one party is involved in a higher risk of punishment, it shall sort out the family property list as soon as possible, evaluate the respective shares of the common property, and reserve evidence for the share retention claim in the execution stage.

also need to remind: the division of common property within marriage is strictly restricted by article 1066 of the civil code. fines are not legal reasons. do not believe in the plan of "dividing the family before execution"-those who transfer or conceal property without authorization against execution may be suspected of refusing to execute the judgment or ruling (article 313 of the criminal law), and those whose spouses assist in transfer are also at risk. The correct approach is to respond to the lawsuit in accordance with the law, file timely objections, and use property division and execution objection procedures to confirm one’s share, thereby ensuring that the court preserves the spouse’s rights within the legal framework.

7. Family communication and follow-up arrangements during the execution of fines

When one party is convicted and imprisoned, and the family’s assets are subject to enforcement, what is put to the test is not only legal expertise but also communication and arrangements within the family. Several practical suggestions: First, understand the case in a timely manner-confirm the amount of the fine, the time limit for performance and the enforcement court through the judgment and the enforcement notice. The fine should generally be paid within the time limit specified in the judgment. If the fine is not paid within the time limit (Article 53 of the Criminal Law), the consequences of active payment and enforcement are very different. Second, reasonable planning of property-sorting out common property and personal property within the legal framework, retain the evidence of spouse's share, and do not take countermeasures such as concealment and transfer. Third, keep the bottom line of life-the request of the person subject to execution to keep the necessary living expenses for himself and his dependent family members should be clearly put forward, and the expenditure vouchers involving the support of minor children and the support of the elderly should be submitted together. Fourth, leave room for life after release from prison-failure to pay the fine may affect commutation and parole assessment. The family should be weighed comprehensively, voluntary payment is the disposition of one's own rights and does not conflict with the spouse's share claim.

In terms of follow-up arrangements, the family may face divorce or property division after serving his sentence and release. At this time, the share retention records and family contribution certificates in the criminal execution stage should be included in the divorce property treatment; if the spouse manages the property and repays the family debts on his behalf during the period of serving his sentence, the certificates should be retained and the debts should be shared according to the common property rules in the future. On the whole, the correct posture of such cases is to "respond according to law, communicate actively, keep good evidence", and find a legal balance between criminal accountability and family property protection.

There is also a procedural right that is often ignored: if it is really difficult to pay the fine, you can apply for postponing the payment according to the law, and reduce or exempt it as appropriate-according to the second paragraph of Article 53 of the Criminal Law, if it is really difficult to pay due to irresistible disasters and other reasons, the people's court can postpone the payment, reduce or exempt it as appropriate. When the spouse or family member applies on his or her behalf, he or she shall submit a certificate of disaster, materials on family financial difficulties and a statement of performance, which shall be examined and ruled by the executive court; truthfully reflecting the difficulties is more conducive to obtaining judicial discretion and leniency than concealing the delay, and can also reserve more turnover space for the family.

The order of execution and the details of compensation for accomplices should also be understood: in the execution of the property-related part of the criminal judgment, the order of compensation (compensation for the victim) takes precedence over the execution of fines and confiscation of property-first make up for the loss of the victim, and then execute the property punishment; if multiple defendants jointly make compensation, they shall bear the responsibility within the amount determined by the judgment, and the family can settle the internal settlement on behalf of the certificate. A spouse must carefully weigh the trade-offs between assisting with restitution and preserving their share: acting as a substitute for restitution may lead to a more lenient sentence and facilitate enforcement‑based settlement, but it is essential to retain supporting documentation and clearly define the nature of the payment—whether it constitutes an advance or a gift—to avoid future disputes.

If the common property includes the equity of the company, it shall be handled according to the share rules: firstly, confirm the share of the spouse in the equity (according to the time point of contribution and the source of funds), and then execute the equity income or transfer price corresponding to the share of the executed person; the spouse may claim to give priority to the transfer or participate in the negotiation of the equity disposal scheme to avoid the damage of the equity interests by the overall sale.

8. Frequently Asked Questions

If the spouse is sentenced to a fine, can you split the common property within the proposal?

No. Article 1,066 of the Civil Code lists only two circumstances under which property may be divided during marriage; criminal fines do not constitute a statutory ground for such division.

If a court enforces execution on jointly owned property, will the spouse’s share be subject to enforcement?

During enforcement, the share belonging to the non-criminal spouse shall be preserved, and only the share of the criminal spouse shall be subject to enforcement; the spouse may, by agreement, divide the property, file a partition suit, or raise an objection to enforcement to assert their rights.

Is a spouse obligated to pay the other spouse’s fine?

No. A fine is the personal debt of the offender, and the spouse has no obligation to pay it on their behalf; voluntary payment by the spouse constitutes an exercise of their own rights.

Which court is responsible for enforcing the fine?

According to the Supreme People’s Court’s “Several Provisions on the Execution of Property-Related Portion of Criminal Judgments,” the execution of property-related portions of criminal judgments, such as fines and orders for restitution, shall be handled by the people’s court of first instance.

Are the rules for enforcing property confiscation and fines the same?

Essentially the same: Confiscation of property involves the confiscation of all or part of the criminal’s personal property, while ensuring that sufficient funds are retained to cover the necessary living expenses of the individual and any dependents (Article 59 of the Criminal Law). The rules regarding the spouse’s share are consistent with those applied in the enforcement of fines.

9. Lawyer's Practical Insights

When a spouse is sentenced and executed a fine and ordered to refund and compensate for the crime, the court has to deal with the common property of the husband and wife, and the first reaction of many people is "then can I divide the common property quickly and keep my own half". There are two levels to be distinguished here: there is a clear limit to the circumstances in which one party can request the division of common property during marriage, and the fine imposed on one party is not included, so it cannot be divided within the proposal only on this ground; However, in the process of execution of the common property, the share belonging to the spouse shall be retained, and the court may seal up and freeze the common property, but only the share of the criminal party shall not be executed. Once you understand the two principles—“division within marriage is restricted” and “the execution share must be preserved”—the approach becomes clear: instead of seeking a formal division of the family property, you should assert your rightful share.

In the specific operation, the spouse should take the initiative to prove the "common" to the enforcement court.Real estate, vehicles and deposits registered in the name of one spouse and actually being the common property of husband and wife are most likely to be targeted by the execution procedures. Therefore, it is necessary to prepare materials such as marriage time, purchase time and source of capital contribution, joint repayment of loans after marriage, etc., indicating that it belongs to common property rather than the personal property of the executed person, so as to allocate its share accordingly. When the court deals with the common property, the co-owner is generally notified, and the spouse, upon receipt of the notice, shall agree with the other party to divide it within a specified period of time, and if the agreement fails to do so, the court may file an action to confirm the share, on which the court retains its share. If there is any objection to the subject matter of execution, it should also be raised within the time limit in accordance with the law, and it should not be regarded as acquiescence because of silence. The implementation should also claim that the necessary living expenses should be reserved for the executed person and his or her dependent family members.

When dealing with this kind of enforcement cases, there are several misunderstandings to be avoided in advance. First, everything will be fine if it is not registered in the name of the spouse. As long as it is essentially the joint property of the husband and wife, the corresponding share may still be executed according to law. "hanging in my name" does not mean safety. Second, the fine belongs to the personal debt of the criminal party, the spouse has no legal obligation to pay, but this is different from the treatment of joint debt, do not confuse the two types of debt and give up the defense, do not think of the other party to pay off. Third, do not rush to transfer and dispose of family property at a low price during the implementation period. This will not only lose the share, but may also lead to new responsibilities. It is safer to sort out the ownership of family property in advance, file the documents, and prepare materials and claim on schedule as soon as possible after receiving the execution notice, and make it clear that "which is the common property and which half should be retained", which is much more active than remedial afterwards.

If one party is sentenced to a fine, the spouse cannot use this to ask the proposal to divide the common property, but there is no need to worry about the execution of all the property: the fine is a personal debt, and the spouse's share and living expenses must be reserved when the common property is executed. After receiving the notice of enforcement, the spouse shall, as soon as possible, sort out the marriage certificate, the registration materials of common property ownership and the necessary expenses for family life, and claim to the enforcement court to retain his share of the property to which he is entitled; if he has any objection to the subject matter of enforcement or the act of enforcement, he shall raise a written objection within the statutory time limit and, if necessary, file a lawsuit for enforcement objection.