Any invalid or cancelled marriage was, is and will not be effective or binding, according to the Marriage Law. Therefore, the property acquired by the parties during their cohabitation is not community property to which the provisions of the Marriage Law on the legal community property system are not applicable. According to the Marriage Law and the Interpretations of the Supreme People's Court on Issues Concerning the Application of the Marriage Law of the People's Republic of China (I), The following principles shall be followed in respect of the property acquired during cohabitation: (1) Respecting the parties' own choice. The parties may dispose of their property based on free will following the principle of autonomy of private rights, without prejudice to the interests of any third party. Therefore, if the parties to an invalid or annullable marriage may reach an agreement in respect of the ownership of the property acquired during their cohabitation, the property should be treated according to their agreement based on their free will. (2) Deemed to be community property. If the parties fail to reach an agreement on the property acquired during cohabitation, the people's court shall deem the property as shared by the parties and deliver a verdict accordingly, except for the property which is proved to be owned by either of the parties. (3) Favoring the innocent party. When a marriage is invalidated or annulled due to the fault of either party and the parties fail to reach an agreement on the ownership of the property acquired during cohabitation, the people's court shall favor the innocent party in the division of the property. (4) Without prejudice to the property rights and interests of the parties to a legal marriage. The division of the property in case of an invalidated marriage due to bigamy, whether by agreement of the parties or as decided by the people's court, shall be without prejudice to the property rights and interests of the parties to a legal marriage.
