The two sides negotiated. If negotiation fails, a lawsuit may be brought to the court, requesting the people's court to divide the property during cohabitation.
According to the Supreme People's Court's Interpretation on Several Issues Concerning the Application of the Marriage Law of the People's Republic of China (Fa Shi [2001] No.30):
Article 4 If a man and a woman make up the marriage registration in accordance with Article 8 of the Marriage Law, the validity of the marriage relationship shall be counted from the time when both parties meet the substantive conditions for marriage as stipulated in the Marriage Law.
Article 5 If a man and a woman who are not registered for marriage according to Article 8 of the Marriage Law but live together in the name of husband and wife file a lawsuit in a people's court for divorce, they shall be treated differently:
1 994 February1Before the promulgation and implementation of the Regulations on the Administration of Marriage Registration of the Ministry of Civil Affairs, if both men and women have met the necessary conditions for marriage, they shall be treated as de facto marriages;
1 994 February1After the promulgation and implementation of the Regulations on the Administration of Marriage Registration of the Ministry of Civil Affairs, if both men and women meet the substantive conditions for marriage, the people's court shall inform them to re-register their marriage before accepting the case; If the marriage registration is not handled, it shall be handled as dissolution of cohabitation.
The Supreme People's Court's Interpretation on Several Issues Concerning the Application of the Marriage Law of the People's Republic of China (II) (Fa Shi [2003] 19) stipulates:
Article 1 The people's court shall not accept the request of a party to dissolve the cohabitation relationship and bring a lawsuit. However, if the cohabitation relationship requested by the parties belongs to the "cohabitation of a spouse with others" as stipulated in Articles 3, 32 and 46 of the Marriage Law, the people's court shall accept it and dissolve it according to law.
The people's court shall accept a lawsuit brought by a party over a dispute over property division or child support during cohabitation.