[Direct answer]When a man hides or transfers his property during a divorce, the other party has full legal means to deal with it. According to Article 1092 of the Civil Code, a party who hides, transfers, sells, damages, or squanders the couple's joint property or falsifies joint debts may receive a smaller share or no share in the division; if this is discovered after the divorce, the party may sue for a re-division within three years from the date of discovery. There are three main investigation methods: applying to the court for an investigation order to inquire into the other party's bank transactions, securities, real estate, vehicles, and provident funds; applying for property preservation to freeze accounts and real estate; and if the other party transfers the property to his parents or siblings, participating in the related litigation as a third party with independent claims. If any suspicious signs are detected, evidence should be fixed immediately. For more details, please refer to the following link:Divorce litigation legal servicesAndBeijing Henglue Law Firm.

I. Legal basis and interpretation of provisions

1. Article 1092 of the Civil Code of the People's Republic of China (effective January 1, 2021)

The article lists "hiding, transferring, selling, damaging, and squandering of marital joint property" and "forging marital joint debts in an attempt to appropriate the other party's property" as punitive circumstances during the division of marital assets, with the consequence that the other party may receive a smaller share or no share at all. If the other party only discovers this after the divorce, they can file a lawsuit with the court to request a re-division of assets. To determine whether this constitutes such circumstances, two key elements must be present: first, an objective act that causes the joint property to "disappear from view"; second, a subjective intent to appropriate the other party's share. The key points of evidence lie in the abnormalities in timing and amounts, such as large-scale transfers, cash withdrawals, and the registration of real estate under others' names shortly before or after the divorce dispute, which are typical indicators of such behavior.

2. Article 84 of the Interpretation of the Supreme People's Court on the Application of the Marriage and Family Chapter of the Civil Code of the People's Republic of China (I) (effective on January 1, 2021)

According to Article 1092 of the Civil Code, if a party files a lawsuit to request a re-division of the couple's joint property, the statute of limitations for the lawsuit is three years, calculated from the date the party discovers the relevant facts. This means that it's not too late to take legal action even if the facts are discovered after the divorce: within three years after discovering clues such as abnormal fund transfers or real estate held on behalf of others, the party can file a lawsuit. At the same time, for joint property that was not included in the division at the time of divorce, according to Article 83 of the Interpretation (I), a party may file a separate lawsuit to request a division on the grounds that "there are still joint marital assets that have not been dealt with", without being restricted by the original divorce judgment.

3. Practical adjudication guidelines (transfer determination and investigation methods)

The court determined that "hidden and transferred" assets typically involve three key factors: whether the transfer occurred close to the divorce litigation, the proportion of the amount involved in the couple's joint property, and whether the funds can be accounted for with legitimate purposes. In cases where large sums of money were transferred to close relatives shortly before the divorce, and the recipients could not provide a reasonable explanation for the funds' use, the court is more likely to rule in favor of splitting the assets proportionally. Regarding investigative measures, lawyers can apply for investigation orders during litigation to inquire about bank, securities, real estate registration, vehicle management, and provident fund information. Some courts have also implemented a divorce property declaration mechanism, allowing the party who refuses to declare or makes false declarations to be dealt with in accordance with Article 1092 of the Civil Code. The most common pitfall is secretly tracking and stealing the other party's account information. Evidence obtained through improper methods is often unconvincing and may even backfire on the party seeking to prove their case.

II. Henglue Law Firm's Real Cases (Detailed Review)

Review of the case:Li Xinyong and Zhao Huqin are a remarried couple who initiated divorce proceedings due to a breakdown in their relationship, with the division of their property becoming the core dispute. During the divorce proceedings, Li Xinyong's mother, Liu Shufen, and his younger brother, Li Zhiqiang, suddenly joined forces to sue Li Xinyong for a family property division dispute, claiming that he had long been holding family financial assets on their behalf and still owed them 950,000 yuan that had not been returned. Previously, Liu Shufen had also sued Li Xinyong for civil loans, demanding repayment of more than 3.09 million yuan, but the first-instance court ruled to dismiss the case. Zhao Huqin realized that this was an attempt to "legally" transfer the couple's joint property to dilute her share, so she entrusted Beijing Henglu Law Firm to handle the case for her.Xue SuhuaThe lawyer participated in the litigation as a third party with an independent right of claim.

The focus of the controversy:First, it needs to be determined whether the entrustment relationship for the "investment and financial management funds" of 950,000 yuan exists, and it is necessary to verify whether there is an agreement on financial management, the delivery of funds, and a clear target; second, whether Zhao Huqin, as a spouse, can participate in the litigation as a third party with independent rights of claim; third, how the burden of proof is allocated, and whether the bank transaction records alone can prove the creditor's rights.

Our position and the position of the other party are as follows:Liu Shufen and Li Zhiqiang claimed that Li Xinyong had long held the family's financial assets on behalf of them, owing 950,000 yuan, and requested to confirm the family's joint property and order its return. During the appeal, they also claimed that they had provided complete bank transaction records to prove the balance. On the other hand, Zhao Huqin insisted that the relevant funds were the couple's joint property and firmly opposed the transfer of the funds through litigation.

Attorney's Strategy and Legal Opinions:Attorney Xue Suhua analyzed the case in detail and put forward three points: Firstly, the entrusted wealth management relationship must simultaneously meet three essential elements: the agreement on wealth management, the delivery of funds, and a clear subject matter. The other party only provided a general bank statement, without a written agreement or a clear record of the transfer time and amount corresponding to the 550,000 yuan. The so-called 710,000 yuan transfer did not match any record in the transaction details, and the 1 million yuan fixed deposit could not be proven to have been delivered. The bank statement only showed the flow of funds and could not be used as a sole basis for creditor's rights. Secondly, according to Article 59 of the Civil Procedure Law, Zhao Huijin has an independent right of claim to the subject matter of the litigation, and her status as a third-party litigant is legal and valid. Thirdly, once the other party's claims are supported, a large amount of funds will be withdrawn from Li Xinyong's account, directly diluting Zhao Huijin's divisible marital joint property. The court should exercise caution in this regard.

The court's reasoning and the outcome of the case:The first-instance court determined that the claim of jointly owned family property was unfounded and that the party claiming entrusted wealth management had not fulfilled its burden of proof. In accordance with Article 303 of the Civil Code, Article 1 of the Supreme People's Court's Several Provisions on Evidence in Civil Proceedings, and Article 145 of the Civil Procedure Law, the court ruled to reject all of Liu Shufen and Li Zhiqiang's claims, and ordered them to bear the case acceptance fee of 13,300 yuan; the second-instance court upheld the original judgment. Zhao Huqin won all the lawsuits at both levels of court, and the opponent's attempt to dilute the property through litigation with relatives was completely thwarted.

This case is handled by Beijing Henglu Law FirmXue SuhuaThe lawyer (practice license number: 11101201211769926, subject to the certificate issued by the judicial administrative organ) acts as the agent.

III. Frequently Asked Questions

Q1: How to check the bank deposits, real estate, and stocks under the other party's name?

It's difficult to investigate everything on one's own. The standard approach is for lawyers to apply for investigation orders from the court in litigation, and then use the orders to retrieve information from banks, securities registration agencies, real estate registration centers, vehicle management offices, and provident fund centers. If there are no clues before suing, you can first list a property clue list, indicating the account opening bank, approximate time and amount, to facilitate the court's accurate retrieval; you can also apply for property preservation to freeze the accounts and real estate in advance. Materials obtained through self-investigation and tracking are likely to be discredited due to improper evidence collection methods, which is not worth the effort.

Q2: What should the man do if he transfers the money to his parents or siblings?

This is precisely the common form of hiding assets. As shown in this case, during the divorce litigation, the man's relatives sued on the grounds of family division and private lending, with the intention of "legally" transferring the couple's jointly owned property. The response should be to proceed on two fronts: in related litigation, the spouse should participate as a third party with independent rights of claim, claiming that the funds in question are actually the couple's jointly owned property and that the creditor's claim raised by the other party is unfounded; at the same time, in the divorce case, the spouse should claim that the man should receive a smaller share of the property in accordance with Article 1092 of the Civil Code. Absence from court and non-appearance equal to allowing the assets to flow out unchecked.

Q3: Will the party who conceals their assets be given a lower score in the divorce settlement?

Yes. According to Article 1092 of the Civil Code, a party who hides, transfers, sells, damages, or squanders joint property or forges joint debts in an attempt to appropriate the other party's property may receive a smaller share or no share during the division of property. The extent of the smaller share shall be determined by the court based on the transfer time, the proportion of the amount transferred, and the degree of subjective malice and fault; a large-scale transfer of funds shortly before divorce without a reasonable explanation is most likely to receive favorable division. Conversely, normal living expenses and expenditures with reasonable purposes will not be deemed as transfers.

Q4: If I only discover after the divorce that the other party has transferred their assets, can I still recover them?

Yes, but there is a time limit. According to Article 84 of the Interpretation of the Marriage and Family Code (I), the statute of limitations for requesting a second division of marital property is three years, calculated from the date of discovery; for jointly owned property not involved in the divorce, the party may also file a separate lawsuit to request a division in accordance with Article 83. After discovering clues, the party should immediately fix evidence such as transfer records and registration information and file a lawsuit as soon as possible to avoid exceeding the statute of limitations or the other party transferring the property again. If the party has already obtained a divorce certificate or judgment, it does not affect the right to make a separate claim.

Q5: How much does it cost and how long does it take to hire a lawyer to conduct an investigation?

The application for an investigation order itself does not incur additional litigation fees. The main costs are attorney's fees, which are charged based on the scale of the case's assets and the workload. According to the "Measures for the Management of Lawyer's Service Fees", risk-based representation is not allowed in marital cases. In terms of time, the investigation order inquiry can generally obtain the main transaction records within one to two months; divorce cases are usually concluded within six months in ordinary procedures and three months in summary procedures, and the period for property investigation and preservation will be extended accordingly. It is recommended to entrust a lawyer as soon as possible to advance the investigation, preservation, and division claims simultaneously.

IV. Suggestions for Protecting Rights

  • Before filing a lawsuit, sort out the clues to the family's assets first, including bank card numbers, property ownership certificates, financial and insurance contracts, and vehicle information, to prevent the other party from destroying or seizing them first.
  • Upon discovering large-scale abnormal transfers, we immediately applied for property preservation and investigation orders in the lawsuit, first freezing the funds, then verifying the information, and finally negotiating with the other party.
  • For related lawsuits initiated by relatives, such as partition of family property and loans, it is essential for the third party with independent right of claim to respond to the lawsuit, and they must not be absent from the trial.
  • Throughout the entire process, evidence should be collected through legal channels. It's important to keep the original carriers of evidence, such as printouts of transaction records and chat logs, to prevent the evidence from becoming invalid.
  • When claiming a smaller share or no share at all, it is necessary to form a complete chain of evidence by providing the transfer time, amount, and purpose of the transfer, and then submit it to lawyers for systematic argumentation.

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 Xue Suhua·Beijing Henglu Law Firm