Property Statement and Property Inquiry
Property statement- If deemed specifically required for a case claiming the division of property, a family court may set a reasonable submission period ordering the relevant party to submit a property list stating the party’s property status either ex officio or upon request by the relevant party (hereinafter “property statement order”) (Article 48-2 of the Family Litigation Act; Article 95-3(1) of the Family Litigation Rule).
· An application requiring a party to make a property statement should be done in writing that states the purport and grounds of the application (Article 95-2(1) of the Family Litigation Rule).
※ The property statement application form is found in <Republic of Korea Court Electronic Petition Center-Usage Guidance-Collected Forms>.
· The family court must serve the foregoing application to the other party and provide an opportunity to comment (Article 95-2(2) of the Family Litigation Rule).
- The family court must serve the party subject to the property statement with the property statement order, at which time it must also give notice that an administrative fine not exceeding KRW 10 million may be imposed for refusal to submit a property list without good cause or the submission of a false property list (Article 67-3 of the Family Litigation Act; Article 95-3(2) of the Family Litigation Rule).
· If a property statement order cannot be served to the party subject to it, the family court gives the other party a reasonable period ordering the correction of the address of the party subject to the property statement. If the other party fails to implement such a correction, the property statement order is revoked and the property statement request is dismissed (Article 95-3(4) and (5) of the Family Litigation Rule).
- Within the reasonable submission period set by the family court, the party subject to the property statement must submit a property list stating the property held by the party and the matters in the following subparagraphs (Articles 95-3(1) and 95-4(1) of the Family Litigation Rule):
1. Assignment of real estate within the 2 years before the service of the property statement order;
2. Assignment of property other than real estate requiring a transfer of rights or registration or transfer of title for its exercise within 2 years before the service of the property statement order to a spouse, direct family member, relative within 4 degrees of relations and their spouses, direct family members of a spouse, or siblings; and
3. Other dispositive acts as determined by the family court.
※ When stating the matters in the foregoing subparagraphs, the name, address, resident registration number, etc. of the person who received the assignment or disposition must also be stated along with the transaction details.
- The property to be stated in the property list is mentioned below, excluding necessaries such as clothing, bedding, furniture, kitchen implements, and other joint living goods necessary for the everyday life of the party and family members living with the party (including family members by de facto relationships) (Article 95-4(2) through (4) of the Family Litigation Rule):
1. Title, superficies, jeonse rights (registered lease on a deposit basis), lease, claims for delivery, and claims for the transfer of rights thereon;
2. Title, claims for delivery, and claims for the transfer of rights on automobiles, construction machinery, vessels, and aircraft;
3. Mining rights, fishing rights, and other rights to which real estate provisions apply mutatis mutandis, and claims for the transfer of rights thereon;
4. Patent rights, trademarks, copyrights, design rights, utility model rights, and other equivalent rights and claims for the transfer of rights thereon;
5. Cash of at least KRW 1 million and bills and notes of at least KRW 1 million total;
6. Bank deposits of at least KRW 1 million and insurance policies with benefits of at least KRW 1 million total.
7. Stocks, national bonds, public bonds, corporate bonds, and other securities of at least KRW 1 million total.
8. Monetary claims of at least KRW 1 million and substitute delivery claims with a value of at least KRW 1 million (including claims to the same debtor of at least KRW 1 million total); for claims secured by security rights such as collateral, such purport and the substance of the security right;
9. Compensation and support to be regularly received, and other income;
10. Various income under the Income Tax Act, excluding those provided for in Subparagraph 9 of at least KRW 1 million total;
11. Gold, silver, platinum, gold, and silver products of at least KRW 1 million total;
12. Watches, precious gems, antiques, art, and musical instruments of at least KRW 1 million by item;
13. Office supplies of at least KRW 1 million total;
14. Livestock and machinery including agricultural machinery of at least KRW 1 million by item;
15. Agricultural, livestock, fishery products (including fruits that are ready for harvest within 1 month), manufactured products, and stock of at least KRW 1 million total;
16. Claims for delivery, claims for the transfer of rights, and other claims on tangible movable property provided for in 11 to 15 above;
17. Tangible movable property not provided for in 11 to 15 above at least KRW 1 million by item, and claims for delivery, claims for the transfer of rights thereon, and other claims;
18. Membership and equivalent rights with a value of at least KRW 1 million, and claims for the transfer of rights thereon; and
19. Other property that the family court ordered to be listed within a set range.
※ A family court may set forth different types of property to be stated in the property list and different lower limits.
※ A party subject to a property statement order may state in the property list monetary debts and delivery or transfer of rights obligations for objects of at least KRW 1 million total and expected regular expenditures extending to and beyond 6 months from the date the property statement order was served.
- A property list must be prepared by the following standards (Article 95-4(5) of the Family Litigation Rule):
1. Property to be stated in the property list requiring transfer of rights or registration, etc. for its exercise, that is, in title trust to a third party or is registered or transferred title as property in trust must also be stated. The title holder and their address must also be stated in this case.
2. The value of the property to be stated in the property list provided for in 8 and from 11 to 18 should be the market value at the time the property list is prepared; provided that if the market value is not known, it should be the acquisition value.
3. The value of securities including bills, notes, stocks, national bonds, public bonds, corporate bonds, etc. shall be their par value; provided that the value of securities with a market value should be the transaction value at the time the property list is prepared.
4. Drawings, photographs, etc. should be attached or other appropriate descriptions given for any unregistered property to be stated in the property list provided for in 1 to 4 above.
※ Details on the property list form and guidance for drafting are found in <Republic of Korea Court Electronic Petition Center-Usage Guidance-Collected Forms>.
- If necessary, the family court may order a party to submit reference materials on the matters stated in the property list. If there is a deficit in the form or a lack of clarity in the property list submitted to a party to the family court, the party may correct the submitted property list with the family court’s permission (Article 95-4(6) and (7) of the Family Litigation Rule).
- A person who uses a property list submitted to the family court for any purpose other than adjudication in the claim for the division of property case is penalized by imprisonment not exceeding 2 years or a fine not exceeding KRW 5 million (Article 73 of the Family Litigation Act).
Property inquiry- If the family court finds that the property list submitted according to the property statement system is inadequate to resolve the claim for the division of property case, it may inquire on the property in the party’s name either ex officio or by a party’s request (Article 48-3(1) of the Family Litigation Act).
· An application requesting an inquiry of property in a party’s name must be in writing stating the following matters, and the grounds for the request must be explained (Article 95-6 of the Family Litigation Rule).
1. The party subject to the inquiry;
2. The public agency, financial institution, or organization to be inquired into;
3. The type of property to be inquired into;
4. If inquiring into past property holdings, such purport and period of inquiry; and
5. The purport and grounds of the request.
※ The property inquiry application form is found in the <Republic of Korea Court Electronic Petition Center-Usage Guidance-Collected Forms>.
· The party requesting a property inquiry must pay in advance the costs necessary for property inquiry as determined by the family court. The same applies where the family court orders the advance payment of any shortfall (Article 95-7(1) of the Family Litigation Rule).
· When the family court makes a property inquiry ex officio, it may cause the party who would be advantaged by the property inquiry to pay the cost. If it is unclear who would be advantaged by the property inquiry, it is deemed to be the other party of the party subject to inquiry (Article 95-7(1) and (2) of the Family Litigation Rule).
· The family court may dismiss the application or revoke the property inquiry decision if the party does not pay the cost (Article 95-7(3) of the Family Litigation Rule).
- A person who uses the results of a property inquiry for any purpose other than adjudication in the claim for division of property case is penalized by imprisonment not exceeding 2 years or a fine not exceeding KRW 5 million (Articles 48-3(4) and 73 of the Family Litigation Act).