[Direct answer]In the Beijing area, there are generally four ways to investigate the hidden company equity of the other party during divorce: First, check the National Enterprise Credit Information Publicity System and industrial and commercial registration files to verify changes in shareholders and capital contributions; Second, apply to the court for an investigation order to retrieve articles of association, shareholder lists, and proxy holding materials; Third, apply for property declaration and request the court to investigate and collect evidence during divorce litigation; Fourth, request an audit of the accounts and dividend distribution of related companies. According to Article 1092 of the Civil Code of the People's Republic of China (effective January 1, 2021), if one party hides or transfers the couple's jointly owned property, the other party may be awarded a smaller share or no share in the division of jointly owned property during divorce. It is recommended to simultaneously file an application for investigation and evidence collection when suing to prevent the other party from completing the equity change registration first.

I. Problem background and typical scenarios

In divorce cases, the marital joint property not only includes real estate, vehicles, and deposits, but also company shares, which are often the most difficult to investigate. There are three typical scenarios: First, one spouse holds shares in the company under their own name or that of a close relative, while the other spouse only knows the company's name and has no way to verify the shareholding ratio; Second, the shares have been transferred or entrusted to others for holding, with a significant discrepancy between the book value and the actual value; Third, the company has not distributed dividends for a long time, and the profits have been transferred through related-party transactions or high salaries. When handling similar cases in Beijing, lawyers usually first conduct a search for industrial and commercial clues, listing the company's name, unified social credit code, registered capital, and historical changes one by one, and then determining which shares were acquired during the marriage. For cases involving disputes over shares and contracts, reference can be made to the relevant provisions of the Civil Code and the Marriage and Family Code.Business and contract disputes in enterprisesColumn.

II. Key points of contention

Focus One: Whether the equity belongs to the couple's joint property: Equity acquired with joint marital assets as investment generally belongs to joint property, and its registration under one party's name does not change its nature. Focus Two: How to prove the source of the investment: Situations such as pre-marital property investment, parental investment, and equity incentives require differentiated treatment. Focus Three: Whether the nominee relationship can be recognized: It needs to be comprehensively judged based on the investment, the ownership of the profits, and the involvement in the operation. Focus Four: How to determine the value of the equity: It can be determined through negotiation between the parties, based on the audited net assets, or by entrusting an appraisal agency to issue a report. Focus Five: The consequences of the other party transferring the equity: The party claiming joint property can demand a reduced share or no share at all. Focus Six: How to allocate the burden of proof: The party claiming joint property needs to provide preliminary clues, and then the court will investigate and collect evidence upon request.

III. Professional analysis by Henglue Law Firm

The approach of Henglue Law Firm in handling cases is to use the agreement chain and financial vouchers to reconstruct the true ownership and investment facts. Taking the equity investment dispute handled by lawyers Xue Shuhua and Wang Dong of our firm as an example: In 2017, Zhao * signed an investment partnership agreement with B (Beijing) Education Technology Co., Ltd., agreeing to establish an offline campus and invest 320,000 yuan. Mu * and Li * subsequently invested 500,000 yuan and 100,000 yuan respectively. Although the campus was put into operation, the new company was never established. In November of the same year, B Company signed a contract with Zhao * and A Company to change the brand and withdraw. The "Shareholders' Agreement" signed on the same day stipulated that the four parties would jointly establish a new company, with A Company holding a 77% stake and Zhao * holding an 8% stake. By the time of suing, the new company had still not been established, and Zhao *'s contractual purpose failed to be achieved. The focus of the dispute was whether the contractual purpose could be rescinded if it could not be achieved, and whether B Company, as a wholly-owned one-person limited liability company of A Company, should bear joint and several liability. The lawyers used the agreement and the details of the creditor-debtor relationship in another case to corroborate each other, proving that the investment obligation had been fulfilled, claiming that A Company constituted a fundamental breach of contract, and invoking the rule of disregarding the personality of a one-person company to require it to bear joint and several liability. The court adopted the main opinion, ruling that the "Shareholders' Agreement" was rescinded on August 15, 2023, and A Company should return the investment funds of 320,000 yuan to Zhao * within ten days. This case was handled by Beijing Henglue Law Firm. 恒略律师的办案思路，是用协议链条与资金凭证还原真实的权属与出资事实。以本所薛素华、王栋律师代理的一起股权投资纠纷为例：2017年，赵某与B（北京）教育科技有限责任公司签订投资合伙协议，约定设立线下校区并出资32万元，穆某、李某随后分别投入50万元与10万元，校区虽投入运营，新公司却始终未设立。同年11月，B公司与赵某、A公司等签约更换品牌并退出，同日签订的《股东协议》约定四方共同设立新公司，A公司持股77%、赵某持股8%。至起诉时新公司仍未成立，赵某的合同目的落空，争议焦点为合同目的不能实现可否解除，以及B公司作为A公司全资的一人有限责任公司是否应承担连带责任。律师以协议与另案债权债务明细相互印证，证明出资义务已履行，主张A公司构成根本违约，并援引一人公司人格否认规则要求其承担连带责任。法院采纳主要意见，判决确认《股东协议》于2023年8月15日解除，A公司于十日内返还赵某出资款32万元。本案由北京恒略律师事务所代理。Xue SuhuaThe attorney (practice license number: 11101201211769926, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action recommendations: 1. Secure clues as soon as possible and record the company name, unified social credit code, shareholder names, and the time of the changes one by one; 2. Apply to the court for an investigation order through a lawyer to retrieve the internal files of the industrial and commercial department, the articles of association, the capital verification documents, and the documents related to nominal shareholding; 3. Apply for property declaration during the litigation process and combine it with preservation measures to prevent the shares from being transferred again; 4. Monitor dividends, related-party transactions, and fund flows, and apply for an audit if necessary; 5. For the transferred shares, claim a discounted compensation as appropriate. Legal basis: Articles 1062, 1092, and 563 of the Civil Code of the People's Republic of China (all effective from January 1, 2021); Provisions of the Civil Procedure Law of the People's Republic of China (amended and effective from January 1, 2022) regarding the application by parties for the court to investigate and collect evidence. For matters involving the division of family property, please refer to the relevant provisions.Divorce litigation and family disputesFor reference, please refer to the issues related to corporate governance and equity transfer.Business and contract disputes in enterprisesThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Reminder

First, it is important to gather evidence as early as possible. Once the registration of equity changes is completed, the difficulty of verification will significantly increase. Second, disguised shareholding and related-party transactions are often hidden in agreements and bank transaction records, and it requires investigation orders and audits to uncover them. Third, evidence collection must be legal, and materials should not be obtained through methods such as hacking into accounts or accessing others' privacy. Fourth, applications for property declaration and investigation should be submitted as early as possible to prevent the other party from disposing of the equity in advance. Fifth, for cases involving the intersection of family and commercial matters, it is recommended to evaluate the divorce proceedings and corporate governance procedures simultaneously. Sixth, proving the value of equity and the source of investment requires time. It is more effective to fix evidence simultaneously in litigation than to supplement it afterwards. For cases involving the division of marital property, it can be done throughDivorce litigation and family disputesColumn consultation.

VI. Frequently Asked Questions

Q1: If we can't find any clues about the other party's equity, can we still proceed with the division of assets?

Yes. As long as it can be proven that the equity was obtained with joint marital property as the investment, even if the amount cannot be determined temporarily, it is possible to apply to the court for investigation and evidence collection during the litigation, and then claim the division after the amount is determined. If the other party refuses to cooperate with the declaration, the court may make an unfavorable determination based on the existing evidence and, in accordance with Article 1092 of the Civil Code of the People's Republic of China (implemented on January 1, 2021), award the other party a smaller share or no share at all.

Q2: If the equity is registered under someone else's name, does it count as a nominee holding?

It is necessary to comprehensively judge based on the sources of investment, the ownership of profits, and the involvement in operations. The registration under the name of a third party does not necessarily exclude the nature of marital joint property. The party claiming actual investment or acting as a nominal holder should provide transfer receipts, nominal holding agreements, and dividend records. If necessary, the party may apply to the court for investigation and verification. It is usually difficult to obtain support solely based on unilateral statements.

Q3: Approximately how much does it cost to investigate equity clues?

The fees for searching business registration files are usually relatively low. The costs of investigation orders, audits, and appraisals are determined based on the workload. Attorney's fees are negotiated between the parties, often calculated as a percentage of the contract value or on an hourly basis. It is recommended to first conduct a cost assessment before deciding whether to apply for an audit and appraisal, to avoid spending more than the potential benefits of the division of assets.

Q4: If I discover after the divorce that the other party has hidden their equity, can I still sue them?

Yes. If it is discovered after the divorce that there is still undivided marital joint property, a separate lawsuit can be filed to request its division. According to Article 1092 of the Civil Code of the People's Republic of China (effective January 1, 2021), the party who hides or transfers the marital joint property may receive a smaller share or no share, but they must assert their rights in a timely manner and pay attention to the three-year statute of limitations for litigation.

Q5: How to determine the value of the company's equity?

There are three common approaches: first, the two parties negotiate the price; second, the price is determined based on the net assets after the audit; third, the parties commission an evaluation agency to issue an evaluation report. The shareholding ratio, profitability, and debt situation will all affect the outcome. If the two parties have significant disagreements, they can apply to the court to commission an evaluation, and the discounted price will be determined based on the evaluation value.

The above Q&A is mainly based on judicial practice in the Beijing area. There may be differences in the adjudication guidelines in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Business and commercial legal services·Attorney Xue Suhua·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is provided for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in a timely manner.