[Direct answer]In the Beijing area, if you discover that the other party is hiding or transferring the couple's joint property, you should immediately fix the clues and apply to the court for investigation, evidence collection, and property preservation. Article 1092 of the Civil Code of the People's Republic of China (effective January 1, 2021) stipulates that if one party hides, transfers, sells, damages, or squanders the couple's joint property, or forges joint debts in an attempt to appropriate the other party's property, the other party may be granted a smaller share or no share in the division of the couple's joint property during the divorce. In practical operations, first, sort out abnormal fund transactions and changes in real estate and equity; second, submit an application for investigation and evidence collection to the court to retrieve bank, securities, and registration information; third, immediately apply for pre-litigation or litigation property preservation if there is a risk of disposal; fourth, explicitly claim a smaller share or no share in the property of the malicious transferring party during the litigation.

I. Problem Background and Typical Scenarios

Property transfers often occur in concentrated bursts before and after the initiation of divorce proceedings, and common forms include: large-scale cash withdrawals or transfers to relatives' or friends' accounts during the marriage; purchasing real estate and vehicles in the name of relatives; early redemption of financial products, insurance policies, or equity; and unilateral disposition of jointly owned real estate during divorce litigation. Another easily overlooked situation is overseas assets and undisclosed assets, which are not reflected in domestic registration systems and are often not detected through routine inquiries.Divorce litigation and family disputesIn China, a thorough investigation of property clues often determines the upper limit of the division result.

II. Key points of contention

1. The standard for determining the act of transferring assets: It needs to be comprehensively judged based on the time of transfer, the amount, the destination, and the purpose of the transfer. 2. The distinction between concealment and transfer: The threshold for determining whether someone refuses to disclose information or intentionally conceals it. 3. The scope of application for investigation and evidence collection and the boundaries of cooperation with the court. 4. The necessity of property preservation and the methods of guarantee. 5. The applicable conditions and discretionary range for awarding a smaller share or no share at all. 6. The path for identifying overseas assets and undisclosed equity interests, including ownership verification and judicial confirmation.

III. Professional analysis by Henglue Lawyers

Take the foreign-related divorce dispute handled by Attorney Xiong Binrong of our firm as an example: Ms. Zhang and Mr. Liu registered their marriage in 1991. After marriage, they had a daughter who has now reached adulthood. Both of them are now foreign nationals and have been living in Beijing for a long time. The marriage broke down due to Mr. Liu's infidelity. The two parties reached an agreement on the ownership of their property, namely, a house in Beijing under Ms. Zhang's name, a property abroad, savings, financial products, and insurance will be owned by her individually, while a house in Shanghai under Mr. Liu's name will be owned by him individually. Since both parties are foreign nationals, the domestic marriage registration authorities cannot handle the divorce registration. Ms. Zhang entrusted a lawyer to resolve the matter through litigation in court. The lawyer first confirmed that both parties have a habitual residence in China and that Chinese courts have jurisdiction in accordance with the Civil Procedure Law of the People's Republic of China (amended and implemented on January 1, 2022) and relevant judicial interpretations. Subsequently, the lawyer conducted a comprehensive review of the properties, savings, financial products, and pension memberships under both parties' names, verifying the ownership and sources of each item. He proposed a division plan whereby each party would own the assets under their respective names and communicated with the other party under the court's supervision to reach a mediation agreement. Finally, the mediation agreement became legally binding after being signed and sealed, and the property division agreement was legally confirmed, which not only dissolved the marriage but also provided a clear basis for subsequent asset disposal. This case was handled by Beijing Henglu Law Firm.Xiong BinrongThe lawyer (practice license number: 11101202211410897, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical Suggestions and Legal Basis

Action suggestions: 1. Establish a family property ledger to record information on real estate, vehicles, accounts, financial investments, and equity; 2. If you detect abnormal transfers or cash withdrawals, save the transaction records and clarify the funding sources, then apply to the court to retrieve the complete transaction details; 3. For properties currently undergoing mortgage, transfer, or redemption procedures, promptly apply for property preservation and prepare guarantees; 4. Review the authenticity of the debts claimed by the other party and ensure their legitimate purpose; 5. If undivided assets are discovered after divorce, claim them according to the law from the date of discovery; 6. For undisclosed shareholdings or overseas assets, apply for investigations and secure evidence through ownership verification. Legal basis: Articles 1066 and 1092 of the Civil Code of the People's Republic of China (both effective from January 1, 2021); Provisions on property preservation and evidence collection in the Civil Procedure Law of the People's Republic of China (amended and effective from January 1, 2022). For matters related to enforcement and recovery, please refer to the relevant provisions.Creditor's rights and debts, and enforcementFor transactions involving equity and assets, you can refer to the following for referenceBusiness 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

Firstly, there are traces of every property transfer, and bank transaction records and transaction times are the most direct clues. Secondly, it's important to take action early in preserving assets, as it becomes much more difficult to recover them once they have been mortgaged or transferred. Thirdly, fabricating debts is a common method of diluting jointly owned assets, so it's necessary to verify the authenticity of the debts. Fourthly, offshore and anonymous assets can also be traced, and ownership verification and judicial confirmation are effective approaches. Fifthly, the application of a reduced or no-division of assets requires sufficient evidence as a prerequisite. Sixthly, mediation agreements also have enforceable force, and the property clauses can be clearly written for easy enforcement.

VI. Frequently Asked Questions

Q1: If the other party transfers their property, can we make them receive a smaller share of the assets during the divorce?

This can be claimed. According to Article 1092 of the Civil Code of the People's Republic of China (effective January 1, 2021), if one party conceals, transfers, sells, damages, or squanders the couple's joint property, or forges joint debts in an attempt to appropriate the other party's property, the party may be awarded a smaller share or no share in the division of joint property during the divorce. However, the party making the claim needs to provide evidence such as the flow of funds, the transaction time, and supporting documents. Mere suspicion is usually insufficient to support the claim.

Q2: How to identify the other party's hidden jointly owned assets?

The common approaches include: first, sort out the known accounts under one's name and save the records of abnormal cash withdrawals and transfers; second, apply to the court for investigation and evidence collection, retrieving bank transaction records, securities account information, and real estate registration information; third, verify the company's equity and dividends based on the other party's business activities; fourth, locate hidden investments, nominal holdings, and financial management certificates; fifth, pay attention to the other party's recent large-scale consumption and real estate transactions. After discovering clues, it is necessary to apply for evidence collection as soon as possible, as failure to do so may result in the loss of evidence.

Q3: Is it necessary to provide a guarantee when applying for property preservation?

It is usually necessary. Pre-litigation preservation requires providing a guarantee, and in the case of in-litigation preservation, the court may order the provision of a guarantee or, due to special circumstances, grant the preservation order but require the applicant to supplement the guarantee. The amount of the guarantee generally matches the amount applied for preservation. Common combinations include cash, bank guarantees, or insurance company preservation policies. If the preservation order is wrongly issued and causes losses to the other party, the applicant may be required to compensate, so a prudent decision should be made based on the value of the property and the transfer of risks.

Q4: Do we still need to divide the property even if there are no joint deposits?

It is necessary. The joint property of a couple does not depend on whether there are bank deposits. It includes real estate, vehicles, equity, provident funds, insurance rights, and property rights formed through online platforms, etc. If one party claims that there is no divisible property, and the other party holds similar property, the principle of equality still applies. In practice, we should first sort out the ownership and then determine the division plan, rather than judging whether there is property based on the number of accounts.

Q5: If I only discover after the divorce that the other party has transferred their assets, can I still pursue legal action against them?

This can be claimed, but the circumstances need to be distinguished. For hidden and transferred assets that have been identified during the divorce division, the party can claim a smaller share or no share according to Article 1092 of the Civil Code; for newly discovered omitted assets after the divorce, the party can request a second division within two years from the date of discovery. In practice, it is recommended to first fix the ownership and facts through litigation or enforcement procedures, then claim rights based on the results, and pay attention to keeping the original evidence.

The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Law Firm for specific situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, so as to avoid missing the statutory time limit. →Divorce litigation legal services·Attorney Xiong Binrong·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is 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. If you encounter disputes, please consult a practicing lawyer in time.