Rules for Chinese Courts to Decide on Overseas Property in Divorce Litigation

Based on the relevant cases searched, the range of overseas property involved in foreign-related divorce disputes is very broad, including property, vehicles, bank deposits, investment income, equity and so on.

Generally speaking, most courts do not divide foreign property (mainly property located outside China); a small number of courts divide foreign property on the basis of the circumstances identified; in a few cases, the court dismisses the case on the grounds that there is no jurisdiction or that it is more convenient for the foreign court to have jurisdiction; and in a very small number of cases, on the basis that the two parties have already reached an agreement in writing, the court does not re-divide the property in dispute between the two parties.

In view of the differences in judicial practice around the country, for parties to a divorce proceeding in the courts of China who wish to have the courts of China deal with the domestic and foreign property of both parties, a number of measures should be taken in tandem:

Firstly, prior to the commencement of divorce proceedings, seek to confirm the property situation in a written agreement.

Secondly, specify to the court the overseas property to be divided, and at the same time provide appropriate evidence to prove the acquisition, ownership, status and other basic information of the property.

Thirdly, for evidence materials involving extraterritoriality, especially evidence involving significant property, try to complete the notary certification process and provide Chinese translations to enhance the probative power of the evidence.

Fourthly, as China has only signed agreements/arrangements on mutual recognition of judgements in civil and commercial matters with some countries and regions, whether the judgements of Chinese courts can ultimately be enforced extraterritorially is also an important issue to be considered.

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