JAPAN Law and Practice Contributed by: Kenji Yano, Tokyo Kokusai Partners Law Office
Procedure and Duration of Financial Proceedings Independent application (conciliation and adjudication) Following the finalisation of divorce, where the parties are unable to reach agreement, either party may file a petition for property division before the Family Court. If conciliation fails, the matter proceeds to adjudica ‑ tion, in which the court determines whether division is appropriate, as well as the amount and method. In practice, conciliation and adjudication together generally require six months or more. In complex cas ‑ es – such as those involving substantial assets, valua ‑ tion disputes or overseas property – the proceedings may extend beyond one year. Ancillary claim in divorce litigation Where property division is sought as an ancillary claim in divorce litigation, the duration broadly follows that of the divorce proceedings; see 1.1 Grounds, Time- line, Service and Process (Procedure and Duration of Divorce). However, if property division constitutes a principal issue in dispute, it is common for proceedings to take approximately 18 months until judgment. 2.3 Division of Assets Basic Approach of the Court to Property Division Property division in Japan is primarily designed to effect a settlement of the property accumulated throughout the marital partnership. Its legal nature is understood to comprise three elements (Supreme Court, 23 July 1971, Minshu Volume 25, No 5, p 805): • settlement element – liquidation of property acquired through the parties’ joint marital efforts; • support element – post-divorce maintenance con ‑ siderations; and • compensatory element – damages-like considera ‑ tions arising from marital misconduct. In practice, the settlement element forms the core of the system. Analytical structure in practice Japanese courts typically proceed in the following order.
Determination of the cut-off date The court first determines the cut-off date for iden ‑ tifying divisible assets. This is generally the date on which substantive economic co-operation between the spouses ended – usually the date of separation. Identification of marital property The court identifies property existing as of the cut- off date. Only marital property is subject to division; separate property (eg, premarital assets or inherited property) is, in principle, excluded. Valuation of assets Assets are then valued. As a general rule, valua ‑ tion is made as of the conclusion of the oral argu ‑ ment, although the relevant valuation date may vary depending on the nature of the asset. For example, real property and shares are typically valued at market value at the close of proceedings (or at a date close to settlement in consensual cases). Bank deposits are ordinarily calculated by reference to the balance at separation. Assessment of contribution (division ratio) The court determines each spouse’s contribution to the formation of marital property. Judicial practice has established a rebuttable presumption of equal con ‑ tribution (the so-called “50/50 rule”). A party seeking a different ratio bears the burden of proving that a departure is justified. In practice, deviation from equal division is rare. 2026 Amended Civil Code The Amended Civil Code codifies this practice by introducing a presumption of equal contribution (Arti ‑ cle 768 (3)). Determination of amount and method On this basis, the court determines the amount of property division and the appropriate method of dis ‑ tribution. Financial Orders Determination of the amount Japanese law adopts a settlement-based model, under which property division is grounded in the liq ‑ uidation of assets accumulated during the marriage. In practice, the court identifies the assets and liabilities
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