JAPAN Law and Practice Contributed by: Kenji Yano, Tokyo Kokusai Partners Law Office
Matrimonial Property Regime and Property Division Structure of the matrimonial property regime in Japan In principle, Japanese law adopts a system of the separation of property between spouses (Civil Code, Article 762). Property acquired during a marriage belongs to the spouse in whose name it is held, and each spouse manages his or her own property. At the same time, spouses owe each other duties of co-operation and mutual support in maintaining the marital relationship (Article 752). They are required to share the expenses arising from marital life in accord ‑ ance with their respective financial capacities (Article 760), and are jointly liable for debts incurred in the ordinary course of household affairs (Article 761). Accordingly, although the formal regime is one of sep ‑ aration of property, the economic unity of the marital partnership is recognised to a certain extent within the legal framework. Relationship with property division The distinctive feature of the Japanese system lies in its two-stage structure: separation of property during marriage, followed by a settlement upon divorce. The Supreme Court has stated that legislative arrange ‑ ments, including property division upon divorce and inheritance rights, are designed to ensure substantive fairness in light of the spouses’ mutual contributions during marriage (Supreme Court Grand Bench, 6 Sep ‑ tember 1961, Minshu Vol 15, No 8, p 2047). As noted under Basic Approach to Property Division , above, judicial practice generally applies a presump ‑ tion of equal contribution, resulting in an equal (50/50) division as the starting point. Trusts Trusts are recognised under Japanese law as an inde ‑ pendent property law institution governed by the Trust Act. However, they rarely play a central role in family court practice. In principle, assets formally placed in trust are not excluded from consideration in property division pro ‑
held in each spouse’s name, calculates each party’s net assets, and then determines the total net mari‑ tal estate. As a general rule, the total net assets are divided equally (50/50). Outstanding debts, including mortgage liabilities, are deducted in calculating net value. Method of division As a rule, the court orders payment in money. Mone ‑ tary adjustment is the standard approach, and in-kind division is exceptional. In relation to real property, however, the court may order the transfer of ownership (including delivery and registration formalities) where this is necessary and appropriate. In assessing such necessity, the court considers factors such as the parties’ intentions, the legal status of the property, and its actual use. In consensual settlements and mediation, more flex ‑ ible solutions are common, including sale of property and distribution of the proceeds. Identification of Assets and Disclosure In property division proceedings, each party is, in principle, expected to disclose their own assets and submit supporting documentation. Where there are reasonable grounds to believe that assets exist in the other party’s name but voluntary disclosure is not forthcoming, a party may apply for a court inquiry (Code of Civil Procedure, Article 186). If it considers it necessary and appropriate, the court may make inquiries to third parties such as financial institu ‑ tions. Through this mechanism, information such as the existence of bank accounts and account balances may be confirmed. However, such court inquiries require a certain degree of specificity in the applicant’s allegations and do not permit broad or exploratory asset investigations. 2026 Amended Civil Code A new order for disclosure of financial information has been introduced (Amended Domestic Relations Case Procedure Act, Article 152-2). If a party refuses disclo ‑ sure, without just cause, or submits false information, the court may impose a civil fine of up to JPY100,000.
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