Why I took the class
The Civil Code is the law most closely tied to our lives, and its rules on family and inheritance
bear directly on our rights. Teacher Chi Ming-Yang's (齊名揚) class
gave me a much deeper understanding of it.
As the saying goes: “The law protects those who know the law.”
Even if we'd never harm anyone,
we need to be able to stop others from infringing on our rights.
So I strongly recommend taking a Civil Code course if you get the chance —
especially teacher Chi's. (Everything below refers to Taiwan's law.)
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Three things I learned
1. The formal requirements for marriage
There are two forms of marriage:
1) Ceremonial marriage (for marriages before May 22, 2008)
• Three conditions:
1. a public ceremony
2. two or more witnesses
3. a marriage registered under the Household Registration Act is “presumed” to be a marriage
2) Registered marriage (for marriages from May 23, 2008)
• Three conditions:
1. it must be in writing
2. signed by two or more witnesses
3. registered with the household registration office
Why it matters for financial planning:
The form of a marriage is closely tied to financial planning.
For a ceremonial marriage before May 22, 2008, if any one of the three conditions was missing,
the marriage is void — which affects marital property and the spouse's right to inherit.
Not being a legal spouse makes a huge difference to property rights and obligations.
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2. Marital property regimes
There are two kinds of marital property regime:
1. Agreed property regimes:
• including community property and separate property.
2. The statutory regime:
• if the couple makes no special agreement, the statutory regime applies.
Types of property:
• Premarital property: property acquired before the marriage.
• Marital property: property acquired after the marriage.
Protecting your rights:
Traditionally in Taiwan, men worked outside and women ran the home.
If a husband has an affair and they divorce,
the wife can claim an equalization of the remaining marital property.
That's because her work in the home indirectly helped the marital property grow.
But property received for free isn't included — for example, property received by bequest.
If that property is deposited in a bank and earns interest, the interest counts as marital property.
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3. Limited inheritance
There used to be news stories about newborn babies inheriting their parents' debts.
To prevent this, the law was amended to make inheritance limited.
How it works:
Within three months of learning of the inheritance, heirs must submit an inventory of the estate to the court
to inherit on a limited basis.
Be careful:
Always file the estate inventory with the court and go through a formal settlement of the estate's debts.
If you settle things yourself, you may miss unknown debts and face creditors later.
The exception:
If you're sure the debts exceed the assets, you can simply renounce the inheritance.
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Fun fact: if your husband dies, what happens to your relationship with his parents?
In-law relationships end with divorce,
so after a divorce your in-laws are no longer your in-laws.
But if your husband dies, what are they then?
The answer: still your in-laws.
Marry ten times and lose ten husbands,
and legally you'll have ten sets of in-laws.
Don't ask me why it's always the husbands who die.
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What I can do after the class
What makes a Civil Code class fun is that so many cases come from everyday life,
like divorce disputes and dividing an estate.
After the class I have a much better feel for how the Civil Code applies.
The teacher also said that in estate and succession planning, insurance is a special tool.
Under Article 112 of Taiwan's Insurance Act and Article 16(9) of the Estate and Gift Tax Act,
insurance has these features:
• The Insurance Act is a special law and takes precedence over the Civil Code.
• Insurance payouts aren't subject to the Civil Code's inheritance rules, so the forced-heirship share doesn't apply.
If there's an inheritance dispute or family conflict,
insurance planning can protect the beneficiaries' interests.
I have 17 years of experience in insurance
and am a Registered Financial Consultant (RFC).
Feel free to message me if you'd like to talk it through.
Finally, thank you to teacher Chi Ming-Yang!
Further reading: Course Notes: CFP Certification — Trusts
