There are three kinds of marital property systems under Taiwan law:
(1) statutory property system,
(2) separate property systems, and
(3) joint property systems.

If a married couple in Taiwan did not register under either a separate property system or a joint property system, then by default the statutory property system applies to their estate. Most of married couples in Taiwan are subject to the statutory property system.

Under the statutory property system:
1. What is yours is still yours. What is your spouse’s is still your spouse’s. This is true for both assets and debts.
2. If one of you dies or if you are divorced, a calculation of your spouse’s and your remaining assets is made. The difference between your remaining assets and your spouse’s remaining assets will be equally distributed between the two of you. When calculating the remaining assets,
(i) each person only needs to calculate the assets acquired after you two got married.
(ii) debts owed by each person after you two got married must be deducted; and
(iii) assets acquired as gifts or inheritance are not counted in this calculation.

In the scenario of a spouse passing away, if the deceased spouse has more remaining assets than the surviving spouse, the surviving spouse may choose to exercise the distribution right described in 2 above. This means that the surviving spouse has to request for a calculation of their remaining assets. After the surviving spouse receives half of the difference between their remaining assets, what is left will be the deceased’s estate that may be passed to his heirs. Because the surviving spouse is also an heir, she shares the deceased’s estate with the other heirs.

Inheritance
The other heirs are decided under Taiwan law in the following order:
1. Children (or, in some special cases, grandchildren)
2. Parents
3. Siblings
4. Grandparents

If the spouse and the children are heirs, the estate is divided equally among them. If the spouse and the deceased’s parents or siblings are heirs, the spouse gets half of the estate. If the spouse and the deceased’s grandparents are heirs, the spouse gets ⅔ of the estate.

Inheritance becomes more complicated when the deceased dies with a will. In principle, Taiwan law assures that each heir gets a minimum share of the estate which cannot be eliminated by the will. The amount of the minimum share depends on who the heir is.

This article is a basic introduction of the laws on marital property distribution and inheritance. Because the laws in this area involve many details and exceptions, please consult your lawyer before using this information. If you require further assistance, please contact alicia.hsu@dentons.com.tw     (August 2020)