What should you do if you discover your spouse has transferred or concealed assets before a divorce? First, preserve the evidence, then proceed with additional calculations and provisional seizures.

One of the most nerve-wracking situations after a couple starts discussing divorce is when they suddenly discover that their partner has started transferring money out of the company.

For example, a large amount of money is suddenly withdrawn from a bank account that originally had several million yuan; a house is transferred to parents, siblings, or friends; the funds disappear after stocks are sold; company shares are suddenly transferred; a large "loan" appears on the books that did not exist before; or even the other party directly says: "I have no property under my name, and you will not get any in the future."

The first issue that needs to be clarified at this point is:

The transfer of assets by a spouse does not necessarily mean that they will not be counted under the law; however, not every pre-divorce property disposal will be automatically considered a transfer of assets.

In handling these types of cases, it is usually necessary to simultaneously determine:

Is this marital property?

Why was the other party punished?

Where did the assets go?

Did the third party actually pay a reasonable price?

Is there already a claim for the distribution of the remaining assets, or is it about to happen?

And if we don't take preservation measures first, even if we win the case in the future, will we still be able to get the money?

Therefore, when a suspected case of job vacancy is discovered, the truly important thing is not to immediately question the other party, but rather...First, preserve evidence of the transfer of property, and then decide which instrument to use: additional calculation, revocation, conversion to separate property regime, or provisional attachment.

1. If a spouse has the right to dispose of their own property, why might there be a problem if they transfer it before a divorce?

Under Taiwan's statutory property system, a couple's property does not become joint property after marriage.

In principle, the husband or wife stillEach party manages, uses, benefits from, and disposes of its own property..

Therefore, simply seeing:

"The spouse sold their own house."

or:

"Transfer the money out of your account"

It is not possible to conclude that something is illegal based solely on this incident.

What really matters is:

Whether this property originally belonged to marital property that should be included in the remaining property calculation upon divorce, and whether the purpose of the disposal was to reduce the amount that the other party could receive in the future.

For example, normal payments during the marriage:

living expenses
mortgage
Children's education expenses
Reasonable investment
Normal debt
Medical expenses

The legal evaluation of this is completely different from that of suddenly transferring a large sum of money to relatives and friends without compensation before a divorce.

Therefore, "reduction of assets" is not the same as "legal separation of property".

We must go back to the time, reason, object, price, and flow of funds of the punishment to make a judgment.

If you need to understand which assets are generally included in the calculation during a divorce, you can first read "..."Distribution of remaining property after divorceFull explanation.

Second, if marital property is transferred out within five years before a divorce, it may still be subject to "additional calculation".

Article 1030-3 of the Civil CodeThis is a very important regulation for handling pre-divorce asset disposal.

According to this provision, if the husband or wife isIn order to reduce the other party's share of the remaining propertyIf a person disposes of their marital property within five years before the termination of the statutory property regime, this property may still be included in the calculation and considered as existing marital property.

For example:

The husband originally had 10 million yuan in savings after marriage.

After the couple started discussing divorce, the husband suddenly transferred 8 million yuan to his brother without compensation, hoping that only 2 million yuan would remain when calculating the assets during the divorce.

If it can ultimately be proven that this transfer was intended to reduce the wife's share of the remaining assets and meets the requirements of Article 1030-3 of the Civil Code, then it is not simply a matter of:

"The money is no longer in your name, so there's no need to calculate it."

However, it may still be necessary to add the relevant assets back into the calculation.

However, please pay special attention to the following:

The law does not stipulate that "all property disposals within five years prior to divorce must be added back".

It still needs to be proven:

The property to be disposed of is marital property;

The timing of the disciplinary action complied with legal provisions;

And the disposal is intended to reduce the distribution of the other party's remaining property.

Therefore, the transfer of property is only the starting point; evidence is the key.

3. If the property has been transferred to a third party, can it still be recovered?

It's possible, but it depends on the specific circumstances.

In addition to "additional calculation", Article 1030-3 of the Civil Code also deals with situations where property has been transferred to a third party.

If, after additional calculation, the party obligated to distribute the funds no longer has sufficient assets to cover the remaining shortfall, the party entitled to the distribution may, under certain conditions, request a refund of the shortfall, within the scope of the benefits received by a third party.

However, if the third party acquires the property for consideration, the law will further examine whether the transaction price is disproportionate.

in other words:

Scenario 1: Give it directly to relatives and friends

For example, donating 10 million yuan to one's siblings free of charge.

It is usually more necessary to check for issues of circumventing the distribution of remaining assets than in normal market transactions.

Scenario 2: There is a formal transaction, but the actual price is clearly abnormal.

For example, a property with a market value of 30 million yuan might be sold to a relative for 5 million yuan when the couple is preparing for divorce.

At this point, it's not enough to just look at the contract saying "sale"; further investigation is still necessary.

Did the buyer actually pay?

From which account was the payment made?

Is the price reasonable?

Did the money eventually return to the original spouse or their related party?

Scenario 3: Normal sale and obtaining a reasonable price

If a spouse sells a house at a normal market price and the proceeds still exist, or are used normally for legitimate debts and living expenses, it cannot be automatically considered a transfer of assets simply because it happened just before the divorce.

Therefore, when dealing with divorce and asset segregation, the key point is not "whether there has been a transfer," but rather...Where did the value go after the transfer?

IV. If we are not yet divorced, can I ask the court to revoke my spouse's transfer of property?

In some cases, yes.

Article 1020-1 of the Civil CodeThere is a system for revocation of property disposal during the marriage to protect the other party's right to the distribution of remaining property.

If the husband or wife has a claim to their marital propertyUnpaid actsMoreover, this action has already impaired the other party's right to claim a future share of the remaining assets, and the other party may be able to request the court to revoke it.

For example:

Knowing that the couple was preparing for divorce, he suddenly gave away a large sum of marital property to his relatives without compensation.

in the case ofPaid transactionsThe requirements are even stricter.

In addition to the party disposing of the property knowing that the act will impair the other party's right to the remaining property distribution, the beneficiary must also be aware of this situation when receiving the benefit for this revocation system to apply.

Therefore, the law will distinguish between:

Normal transaction;

Unconditional donation;

And transactions in which both parties are aware that the purpose is to circumvent the distribution of property.

Not all sales can be reversed.

Fifth, one cannot wait indefinitely after discovering a change of employment: the right of rescission has a very short period.

This is very important.

according toArticle 1020-2 of the Civil CodeThe aforementioned right of rescission has a clearly defined limitation period:

The right to revoke must be exercised within six months of becoming aware of the grounds for revocation; however, it cannot be exercised more than one year after the property disposal occurred.

Therefore, if you have already mastered:

Real estate transfer documents;

Gift contract;

Remittance records;

Transfer of shares or equity;

Other explicit property disposals

Don't think:

"We can deal with it all at once after the divorce proceedings are over."

This is because some rights may have already exceeded their exercise period before the divorce proceedings have concluded.

6. If the marriage is not yet over, but the other party keeps reducing their assets, a separate property system can be considered.

If a couple has not yet formally divorced, but one party has already begun to improperly reduce marital property, civil law has another very important tool:

They requested the court to declare a change to a separate property regime.

according toArticle 1010 of the Civil CodeIf one party improperly reduces marital property, thereby infringing upon the other party's right to claim a future share of the remaining property, the other party may, in accordance with the law, request the court to declare a change to a separate property system.

The significance of this system lies in:

You don't necessarily have to wait until the divorce is finalized before dealing with property issues.

If there is already a specific risk of property loss, an assessment should be made as to whether to terminate the statutory property regime first, so that the issue of the distribution of the remaining property can be brought into legal proceedings as soon as possible.

Especially when cases occur:

Continued asset sales;

Large withdrawals;

Remittances from unidentified individuals;

Company equity transfer;

Suspected of creating debt;

Transferring assets overseas;

In such cases, it is even more inappropriate to simply wait for the divorce proceedings to proceed slowly.

7. Can I directly freeze the other party's bank account or house? It depends on whether the conditions for a false attachment are met.

Many people, upon discovering that their spouse has taken over part of their assets, will ask the following question as their first question:

"Can we freeze his assets first?"

Legally, the term "short-term attachment" is usually discussed.

according toArticle 522 and the following provisions of the Civil Procedure LawRegarding monetary requests, if the purpose is to preserve funds for future enforcement, a preliminary injunction can be requested from the court.

But a false detention is not simply a matter of saying:

"I'm afraid he'll leave his job."

The court will definitely grant it.

It usually still needs to be clarified:

First, there is indeed a monetary claim that needs to be preserved.

For example, the right to claim the difference in remaining assets and its specific basis.

For relevant preservation procedures, please refer to the following:Civil Presumption of Seizure and Preservation Procedures.

Second, there is a risk that enforcement may not be possible or may be difficult in the future.

For example:

A large number of assets have been sold recently;

Frequent large withdrawals;

Transfer of property to relatives and friends;

My only real estate is about to be sold.

Transferring funds overseas;

It has been clearly stated that no payment will be made;

Or other specific facts that are sufficient to demonstrate the risk of execution.

Therefore, a truly useful false attachment petition is usually accompanied by a clear statement:

Timeline of property changes.

8. Special provisions apply to applications for provisional attachment of remaining property in cases involving such attachment.

This is very important in actual cases.

In cases of false seizure, the court may require the creditor to provide a certain percentage of collateral.

butArticle 526 of the Civil Procedure LawSpecial provisions are made for the right to claim the difference in remaining marital property:

If a preliminary attachment is requested based on a claim for the distribution of the remaining assets, the court shall order that the amount of security provided by the applicant shall not exceed one-tenth of the amount requested.

For example, a claim for the remaining asset difference of 10 million yuan:

The law sets a maximum limit on the amount of bail required by court orders.

The purpose of this regulation is to prevent individuals from facing spousal divestment but being unable to protect their assets due to an inability to provide sufficient collateral.

However, this does not mean that as long as one-tenth of the guarantee is provided, a provisional attachment will definitely be granted.

The request itself and the reasons for the presumptive seizure still require considerable clarification.

9. I don't know how much property the other party has. Is there any way for me to claim it?

In many marriages, one spouse is responsible for earning money, investing, or running a company, while the other spouse has no idea about the family's complete financial situation.

Therefore, divorce cases occur frequently:

"I know he has money, but I don't know where he keeps it."

The law is not entirely without tools.

according toArticle 1022 of the Civil CodeBoth spouses have an obligation to report on each other's marital property acquired during the marriage.

After entering the family court proceedings,Article 17 of the Family LawIt also stipulates that the court may, when necessary, entrust:

Police agencies;

Tax authorities;

Financial institutions;

And other relevant agencies or organizations,

Investigate or ascertain the financial status of the parties involved or their associates.

However, please note:

This does not mean that a lawyer can log into a system and find out all of a spouse's bank deposits, stocks and overseas assets as soon as the client walks into the firm.

It must still be carried out in accordance with legal procedures.

Therefore, before entering the court proceedings, the parties can first organize the clues they have legally obtained.

10. What property evidence should be preserved before a divorce?

If you discover any unusual financial activity by the other party, it is not advisable to question them first and then slowly gather information.

Because once the other party knows that you have started to pay attention to financial matters, it may be more difficult to obtain relevant records.

Prioritize organizing the following:

The balance that the bank account once showed;

Legally obtained passbooks or transaction records;

Salary, bonuses, and income information;

Changes in property address and registration;

Information on stocks, funds, and securities accounts;

Insurance documents;

Company name, shareholding ratio, and information on directors and supervisors;

Shareholder transactions;

Large transaction records;

Past asset declarations or loan documents;

Purchase, sale and loan agreements;

The two parties discussed property arrangements via LINE, Email, or other communications;

The other party had previously indicated that they would move their assets.

If company equity is involved, the following should also be compiled:

Company registration;

Shareholder register;

Financial statements;

Each capital increase;

Equity transfer;

Shareholder loans;

And financial transactions between the company and the spouse.

For further reference regarding the value and base date of such complex assets, please refer to...Calculation of equity, stocks and real estate in high-net-worth divorces.

However, it is important to note:

Do not attempt to hack into your spouse's phone, email, online banking, or other private accounts simply because you suspect they are transferring assets.

The evidence itself must also be obtained legally.

11. A spouse suddenly initiating a large number of "debts" may also affect the calculation of remaining assets.

Taking a break from one's job doesn't necessarily mean transferring assets.

In some cases, a different situation may arise:

The party who was originally in good financial condition suddenly made demands after preparing for the divorce:

He owed his parents 5 million yuan.

He owes his siblings 8 million yuan;

He owes his friend 10 million yuan.

Or the company suddenly has a large amount of shareholder loans.

Because the calculation of remaining assets involves debts incurred during the marriage, such suddenly appearing debts cannot be accepted simply by looking at a promissory note.

Further confirmation is needed:

When did the loan occur?

Whether the payment was actually made;

Where is the cash flow?

Why borrow money?

Have you made any repayments?

Has this been mentioned by either party in the past?

The relationship between the creditor and their spouse;

And when the relevant documents were created.

If only formal documents appear suddenly after the breakdown of the marriage, but there is no corresponding cash flow, the court will still make a judgment based on the actual evidence.

If the dispute also involves the original source of the property, please refer toHow to distinguish between premarital property and gifts from parents?.

12. Does selling a house before a divorce necessarily mean you've sold all your assets?

uncertain.

Suppose that before the couple prepares for divorce, the husband sells his marital property for 20 million yuan, the market price.

If the 20 million yuan from the sale still exists in a bank account, then it simply means the asset type has changed from:

real estate

become:

deposit.

The value has not disappeared.

What really needs attention is:

Where did the money go after the house was sold?

If the 20 million yuan is quickly returned:

Transferred to relatives free of charge;

Large cash withdrawals;

Used to settle debts that do not exist;

Purchasing assets of related parties at unreasonable prices;

Or the funds cannot be explained at all.

Further analysis is needed to determine whether this involves circumventing the distribution of remaining assets.

Therefore, we cannot focus solely on property ownership registration.

Must trackPost-transaction consideration.

13. If I withdraw all the money in cash, will it be impossible to trace?

uncertain.

Cash is indeed harder to trace than real estate or bank deposits, but large withdrawals can still leave traces:

Withdrawal records;

Bank transaction details;

Withdrawal time;

Withdrawal location;

Related dialogue;

Financial status before and after withdrawal.

If a couple has not had a habit of withdrawing large sums of money during many years of normal married life, but withdraws a large amount of money in a short period of time after discussing divorce, the court may still require them to explain the purpose of the funds.

therefore:

"Bank account balance has become zero"

Not representing:

"There is no property under the law."

What truly matters is whether evidence can be used to trace the flow of assets.

14. The divorce case has been filed. When should we determine the value of the property?

This is a very important time point in the case of remaining assets.

according toArticle 1030-4 of the Civil CodeThe value of the existing marital property of a couple shall, in principle, be determined when the statutory property regime is terminated.

But if the couple isDivorce by court orderThe value of property is calculated based onWhen filing for divorceAs the standard.

In addition, if the property belongs to the category of marital property that should be additionally calculated under Article 1030-3 of the Civil Code, its value shall be based on the value at the time of disposal.

For more informationDivorce proceedings by judgePlease refer to the relevant instructions provided by our institute.

Therefore, in cases where property prices fluctuate significantly, for example:

stock;

Company equity;

real estate;

fund;

Other investments,

The value of a particular day can make a difference of millions of dollars or even more.

15. Claims for remaining property are also time-limited; they cannot be made indefinitely after a divorce.

according toArticle 1030-1 of the Civil CodeThe right to claim the remaining difference in property distribution is also subject to a statute of limitations.

In principle:

If the right holder does not exercise their rights within two years from the date they become aware of the remaining property difference, the right will be extinguished; if more than five years have passed since the termination of the statutory property regime, the right will also be extinguished.

Therefore, after the divorce agreement is negotiated, it cannot be concluded that:

"We'll deal with the property issue when we have time later."

Especially if you already know that your spouse has a lot of marital assets, you should pay more attention to the relevant period.

16. What should be done in practice if it is discovered that the spouse may be leaving their job?

The truly effective sequence is usually not to use all legal means at once on the first day.

You can organize them in the following order:

Step 1: Do not destroy the evidence first.

Those that are already legally in possession of:

Account information;

Real estate;

stock;

company;

Insurance;

trade;

Communication Records

First, back up and organize the data.

Step 2: Create a timeline of asset changes

Bundle:

The time when conflicts between the couple began;

The date when the first divorce was filed;

The original state of the main assets;

When to begin selling, withdrawing, or transferring funds;

To whom should it be transferred?

How much is the price?

Organize them on the same timeline.

Step 3: Identifying Legal Tools

Whether it is necessary depends on the specific case:

Article 1020-1 of the Civil Code is hereby repealed.

Additional calculations are required under Article 1030-3 of the Civil Code;

Article 1010 of the Civil Code adopts the separate property system;

Presumptive seizure;

Lawsuits concerning the distribution of remaining assets;

And other necessary preservation procedures.

Step 4: Decide whether to negotiate immediately

Sometimes, revealing the truth to the other party too early, before evidence and preservation are completed, can actually increase the risk of further transfer of assets.

Therefore, whether to immediately send a lawyer's letter or propose negotiations should be decided on a case-by-case basis.

17. In divorce and asset stripping cases, the most important thing is not "finding all the money," but clarifying the flow of assets.

Many people believe that when faced with their spouse taking on full-time employment:

"If I can't find where the other party has kept their money, I'm guaranteed to lose."

That's not necessarily true.

The most important thing in cases involving remaining assets is:

What assets were acquired during the marriage?

When did it start to decrease?

Why the reduction;

To whom should it be transferred?

Is there a reasonable price?

Is the debt claimed by the other party genuine?

And the time relationship between these property changes and marital breakdown and divorce proceedings.

The more concentrated the changes in assets were before the divorce, and the less reasonable the explanation, the more these facts warrant further investigation.

Therefore, when an anomaly is detected,The sooner you preserve evidence, the greater the chance you have to restore the flow of assets.

Frequently Asked Questions about Divorce and Separation of Property (FAQ)

If my spouse transfers money to my parents before the divorce, am I definitely not entitled to any share?

Not necessarily. If the disposal of marital property is intended to reduce the share of the other spouse's remaining assets, and meets the requirements of Article 1030-3 of the Civil Code, the relevant property may still be subject to additional calculation. If it involves a gratuitous gift or other qualified acts, the revocation provisions of Article 1020-1 of the Civil Code may also be further assessed.

Do all assets transferred out within five years prior to the divorce need to be reclaimed?

No. Five years is only one of the important periods stipulated in Article 1030-3 of the Civil Code. It is still necessary to determine whether the subject matter of the disposal is marital property and whether it has the purpose of reducing the distribution of the other party's remaining property.

If the other party sells the house, can I apply for a preliminary injunction?

A presumptive attachment cannot be automatically obtained simply because a house is sold. A basis for the claim regarding remaining assets must still be presented, and the specific risks of future inability to enforce the asset or difficulty in enforcement must be explained.

How much bail is needed for the temporary seizure of remaining assets after a divorce?

The court will still make a ruling on a case-by-case basis, but Article 526 of the Civil Procedure Law specifically stipulates that when applying for a preliminary attachment based on the right to claim the difference in the remaining property of the spouses, the amount of security required by the court shall not exceed one-tenth of the amount claimed.

I don't know what bank accounts my partner has. Can I still file a lawsuit regarding the remaining assets?

You can start by organizing legally obtained information about the assets. Once the case enters family court proceedings, the court can, if necessary, conduct investigations with tax authorities, financial institutions, and other relevant entities. This does not mean that a lawyer can arbitrarily access all of their spouse's financial information outside of litigation.

If a spouse suddenly produces IOUs from relatives or friends, claiming to be heavily in debt, will the court consider them?

Not necessarily. The existence of a debt still needs to be determined based on evidence. The court can examine the loan date, actual cash flow, purpose, repayment status, and creditor relationship. It is not automatically included in the calculation simply by presenting a promissory note.

I already know that my spouse has gifted their property to relatives. Can I wait until after the divorce to deal with this?

It is not advisable to simply wait. In particular, the right of rescission under Article 1020-1 of the Civil Code is subject to time restrictions under Article 1020-2, namely, "six months from the date of knowing the reason for rescission" and "one year from the date of the act," so it should be assessed as early as possible.

If you discover that your spouse is transferring assets, don't just focus on the divorce itself.

The most dangerous situation in divorce property cases is often not that the two parties disagree on the value of the property, but that they only discover, after the divorce proceedings have begun, that the original real estate, savings, stocks, or company shares have undergone significant changes.

If it has already been discovered:

Large withdrawals;

Transfer of real estate;

Unusual sale of stocks or equity;

Property given away to relatives and friends without compensation;

A sudden surge in debt;

Or the other party explicitly states that they intend to move the property.

Priority should be given to compiling records and evidence of property changes, and then assessing whether to add to the remaining property, revoke the asset registration, change to a separate property system, or apply a provisional seizure.

When handling divorce, marital property division, and civil preservation cases, Fidelity Law Firm first confirms premarital and postmarital property, the timing of property transfers, the flow of funds, and the current procedures before determining whether to address property preservation first or to plan it together with divorce, custody, and other family matters.

If you require handling divorce and other family disputes together, please learn more.Taipei divorce lawyers and family law cases.