When parents pay for a home, write down at the transfer whether it is a loan or a gift

Money parents put toward a home before marriage is, by default, only for their own child. Money put in after marriage with no agreement is treated as joint marital property. From February (2) 2025, if one side’s parents paid the full amount during the marriage and did not write that it was only for their own child, at divorce the court may award the home to that child and then decide whether to compensate the other side. To treat it as a loan, write it clearly that day and have both sides sign.

Cost

No money. On the day of the payment write one page stating whether the money is a gift to whom or a loan to whom, signed by the contributing parents and the child. If it is a loan, have both spouses sign, and put the same wording in the transfer note.

Benefit

Parents’ contribution toward a home for the couple before marriage is treated as a gift to their own child personally, unless the parents clearly say it is a gift to both. Contributions after marriage follow any agreement. With no agreement or an unclear one, they are handled under joint marital property. From 1 February (2) 2025 there is a further rule. Where during the marriage one side’s parents paid the full amount and the gift contract did not say it was only for their own child, at divorce division the court may award the home to the contributing parents’ child. After that award it weighs several facts to decide whether to compensate the other side and how much: cohabitation and birth of common children, divorce fault, contribution to the family, and the home’s market price at divorce. Where one side’s parents paid part, or both sides’ parents paid, award to one side is based on the source and share of funds, with reasonable compensation (nationwide).

Notes

Writing it clearly helps both sides. Contributing parents need not wait until divorce to invent a loan note to protect the contribution. After Interpretation (II) took effect, who paid the money is itself a basis for dividing the home, not only whose name is on the title. The side receiving the money also need not wait until divorce to learn what the money counts as. If you mean a loan, treat it as a loan: both sides agree it is a loan, agree how to repay, write it on the transfer, and keep repayment records when needed. Missing any of these means explaining in court.

Sources · 3

1. 最高人民法院 (2020). 关于适用《民法典》婚姻家庭编的解释（一）（法释〔2020〕22 号，第二十九条）. court.gov.cn/fabu/xiangqing/282071.html
2. 最高人民法院 (2025). 关于适用《民法典》婚姻家庭编的解释（二）（法释〔2025〕1 号，第八条）. court.gov.cn/zixun/xiangqing/452771.html
3. 全国人大 (2020). 民法典（第一千零六十二条第一款第四项）. spp.gov.cn/spp/fl/202006/t20200602_463888.shtml