How are natural appreciation and active appreciation distinguished, and is there a clear statutory provision?
Articles 1062 and 1063 of the PRC Civil Code distinguish the scope of marital property from that of separate property: ‘investment income’ belongs to the marital estate, while ‘premarital property’ belongs to the individual. The distinction between ‘natural appreciation’ and ‘active appreciation’ is a refined judicial interpretation of the concept of ‘investment income’ in practice—derived from the adjudicative views of the First Civil Division of the Supreme People’s Court and local trial practice—rather than a standalone statutory provision.
Source article: ‘The Company Founded Before Marriage: Why Is Half of the Post-Marital Appreciation Distributed in Divorce? — Rules and Judicial Approaches for Dividing Pre-Marital Equity’s Post-Marital Appreciation’
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