Marital property or Joint property

Cambodia’s Civil Code distinguishes between marital and separate property. Marital property, acquired during marriage, is generally considered joint property, while separate property, owned before marriage or acquired through inheritance or gift, belongs solely to one spouse. Marriage partners may exclude certain property from marital property through prenuptial or postnuptial agreements.

The Code defines marital property as all property earned by either or both spouses during the marriage, excluding property owned before marriage or acquired through gift or inheritance. However, the law is unclear on whether income generated from separate property, such as interest from premarital savings or rental income from inherited land, becomes marital property.

Issue to be considered

The Code provides a basic framework for property division but leaves significant ambiguities. For instance, it’s unclear whether income from separate property—such as interest on premarital savings or rental income from inherited land—is considered marital or separate property. This lack of clarity can lead to disputes during divorce proceedings.

In practice, rental income from inherited land is often considered marital property. However, any increase in the land’s value during the marriage is typically treated as the inheriting spouse’s separate property. Upon selling the land, the full proceeds generally belong to the original owner.

Distinguishing between income generated by property and the property’s increased value can be complex. For instance, if a spouse inherits controlling shares in a company, determining which portion of the annual profits is marital property is challenging. This is especially true when the shareholder can control dividend payouts.

To ensure equitable property division, couples contemplating marriage or facing divorce should seek legal counsel to understand the complexities of Cambodian property law.