[Direct answer]When investigating hidden assets, lawyers usually follow three steps: First, they sort out abnormal clues from family income and expenditure records, bills, and chat records; Second, they apply to the court for an investigation order in their capacity as lawyers to retrieve information such as the other party's bank statements, securities accounts, real estate and vehicle registrations; Third, they simultaneously apply for property preservation to prevent the assets from being disposed of during the litigation. If it is confirmed that one party has hidden, transferred, sold, damaged, or squandered the couple's joint property or forged joint debts, they may claim a smaller share or no share of the property according to Article 1092 of the Civil Code of the People's Republic of China. For more details, please refer to the following link:Divorce litigation and legal services for family disputesAndBeijing Henglue Law Firm.

1. Problem background and typical scenarios

Hiding assets is the most headache-inducing issue in divorce property division. Common methods include: transferring large sums of money to relatives such as parents and siblings before and after separation; selling property and vehicles at significantly low prices; using cash to purchase financial products or insurance to evade asset searches; holding property and shares in others' names; fabricating loans to create false debts; and delaying company dividends or artificially increasing costs for the operating party. Information asymmetry is the biggest obstacle: the party who has long controlled the family's finances knows every detail about income and expenditure, while the other party often only has a few card numbers and vague impressions in their hands. Whether the hidden assets can be found and their nature proven directly determines the division base and final share.

II. Key points of contention

  • The struggle to find clues: When the actual living standard of the other party is obviously inconsistent with the property they have declared, how to extract verifiable clues from their consumption habits, bills, and chat records requires the ability to observe daily life and retrieve evidence.
  • The dispute over the nature of the funds: Whether the large-sum transfer from the other party's parents constitutes a gift, a loan, or entrusted asset management, and who the funds are ultimately transferred to and controlled by determines whether the funds belong to the couple's joint property.
  • The dispute over the determination of transfer: Where is the boundary between normal family expenses and the transfer of property? What level of proof is required? How to determine the amount of the reduced share? All these issues need to be analyzed and demonstrated on a case-by-case basis, taking into account the financial records and the specific circumstances of each case.

III. Professional analysis by Henglue Lawyers

A divorce case handled by Henglue Lawyers vividly demonstrates the investigation process. In the divorce dispute between Li * and Wang *, Wang *'s mother transferred more than 5.81 million yuan to Wang * during their marriage. Wang * claimed that except for the 340,000 yuan transferred to Li *, the rest of the money was entrusted by his mother and brother for financial management and did not belong to their marital property. The lawyer meticulously traced the flow of funds, proving that the money was ultimately transferred to Wang *'s personal account and used by him. The lawsuit claiming that the money belonged to others was dismissed by the court. The other party denied that it was marital property, but at the same time claimed that the 340,000 yuan should be returned as marital property, which was self-contradictory. The court ultimately ruled that the relevant funds belonged to the couple's marital property, and Wang *'s bank deposits, insurance, funds, etc. were divided in a 50% proportion, with Li * receiving 1.504 million yuan and 401,000 yen. The property was acquired by Li * through bidding and the discounted price was paid to Wang *. It can be seen that whether the defenses of holding funds on behalf of others and entrusting financial management can be established depends on the evidence of the flow of funds. In practice, lawyers will also apply for investigation orders to retrieve real estate registration and vehicle information, apply for preservation and freezing of accounts to fix the status of the property; and in cases involving property disposal, they can combine with other evidence to prove the legitimacy of the transaction.Legal services for real estate transactions and construction projectsWhen verifying the ownership chain and dealing with subsequent enforcement matters, the two processes can be integrated into one anotherLegal services for creditor-debtor relations and enforcement cases.

IV. Practical suggestions and legal basis

At the legal basis level: Article 1092 of the Civil Code of the People's Republic of China is the direct basis for claiming a smaller share or no share, covering acts such as hiding, transferring, selling, damaging, and squandering marital joint property, as well as forging marital joint debts in an attempt to seize the other party's property; Article 1087 stipulates that the division of marital property in a divorce shall be decided in accordance with the principles of considering the interests of children, the wife, and the innocent party. The Civil Procedure Law of the People's Republic of China and relevant judicial interpretations establish a system whereby parties may apply to the court for investigation and collection of evidence when they are unable to collect evidence on their own due to objective reasons, as well as pre-litigation and in-litigation property preservation systems, providing procedural support for lawyers' investigation and preservation. At the practical advice level: Daily pay attention to keeping family property certificates such as real estate certificates, vehicle registration certificates, deposit accounts, financial management contracts, and insurance policies; Do not rush to confront the other party when discovering abnormal transfers, but first fix the screenshots and clues; Apply for preservation in a timely manner before and after suing to prevent accounts from being emptied and properties from being transferred; Pay attention to preserving the purpose statements and communication records of large-scale transactions between relatives.

5. Henglu Law Firm's Advice

Investigating hidden assets is a battle of evidence, where the key lies in the flow of funds rather than verbal accusations. When detecting signs of asset transfer, it is crucial to immediately engage a lawyer to formulate an investigation and preservation plan, avoiding tipping off the other party and accelerating their transfer of assets. For confirmed acts of asset transfer, in addition to claiming a smaller share or no share at all, a comprehensive analysis of the transaction records can also prevent the omission of jointly owned assets, with the actual effect often being no less effective than pursuing recovery. This case was handled by Beijing Henglu Law Firm.Li YonghuiAttorney (practice license number: 11101199611955812, subject to the document issued by the judicial administrative organ). If you suspect that the other party is hiding assets, it is recommended that you first organize a list of known accounts and suspicious items, and then let the attorney evaluate the investigation path and timing.

Q1: How can I determine whether the other party is hiding assets?

We can start with several contrasts: the actual consumption level of the family is obviously inconsistent with the declared property; there have been recent large-scale transfers, frequent cash withdrawals, or concentrated purchases of financial products and insurance; the property and vehicles under their name have suddenly been transferred to others' names; the other party has suddenly acknowledged the external debts that they originally denied. Organize these doubts chronologically and provide them to the lawyer, who will determine which ones are worth applying for an investigation order to verify. It is important not to confront the other party before verification, so as to avoid them accelerating the transfer or destruction of evidence, which will only increase the difficulty of providing evidence later.

Q2: What are the requirements for a lawyer to apply for an investigation order, and what information can be accessed through it?

Generally, after a lawyer takes on a case, he or she will apply to the court on the grounds that it is impossible to collect evidence on his or her own due to objective reasons, stating the investigation object, scope and purpose. After the court reviews and approves the application, the requested information can be queried, typically including bank account transactions, securities and fund holdings, real estate registration, vehicle registration, and social security and housing provident fund payment records. The investigation order is only used for the litigation of the current case, and the information retrieved should be related to the division of property. If the scope of the application is too broad or unrelated to the case, the court may not grant approval. Therefore, the more specific the clues are, the higher the likelihood of approval.

Q3: If the other party transfers the money to their parents or relatives, does that count as a transfer of property?

It is necessary to judge based on the transfer background and the ultimate destination of the funds. If there is a large-scale transfer of funds during the marriage without a legitimate reason, and the other party cannot explain the reasonable purpose of the transfer, it may be deemed as a transfer of common property, and the party can claim a smaller share or no share at all. However, not all transfers of funds between relatives constitute a transfer: the nature of the funds transfer between the other party's parents and the transferee depends on who ultimately controls the funds and whether there is a consensual arrangement for holding the funds on behalf of others. The aforementioned case involving 5.81 million yuan illustrates another point: as long as the funds transferred from the other party's parents are ultimately deposited into the other party's personal account and controlled by them for use, they may still be deemed as common marital property and subject to division.

Q4: If it is confirmed that the other party has hidden their assets, how much will they get in the divorce settlement?

The law does not stipulate a specific proportion. Article 1092 of the Civil Code of the People's Republic of China stipulates that the consequences are that the share can be reduced or not divided at all. The specific extent shall be determined by the court in light of the amount of the hidden funds, the means used, the subjective malice, and the overall circumstances of the case. The larger the amount of the hidden funds and the more malicious the means used, the more obvious the inclination will be. In addition, even if the transfer is not supported, fully investigating the other party's true assets can prevent the omission of the share - in many cases, once the hidden deposits are verified, the basis for division will be directly expanded, and the effect will be immediate and obvious.

Q5: If I discover that the other party is transferring their assets, is there still time to stop them?

It's usually possible. If the situation is urgent before the lawsuit and failure to apply for preservation immediately will cause irreparable damage to legitimate rights and interests, the applicant may apply to the court for pre-litigation property preservation. After the court accepts the application, it will generally make a ruling and take measures within 48 hours. The applicant needs to provide a guarantee. During the litigation, the applicant may also apply for preservation, such as freezing bank accounts and seizing real estate and vehicles. It is advisable to proceed with preservation simultaneously with the lawsuit with the assistance of a lawyer to avoid tipping off the other party. At the same time, attention should be paid to ensuring that the scope of preservation is commensurate with the claims in the lawsuit. If the applicant makes preservation errors and causes losses to the other party, the applicant may bear compensation liability.

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