Mr. Cui and Ms. Zhao, residents of Minhang District, married in 2010 and had a daughter. During their marriage, they acquired a house and a car. In late 2023, Mr. Cui's personal debt increased sharply, leading to persistent calls from banks.

Fearing seizure of their house and car, the couple agreed to a fake divorce to protect their assets. They signed an agreement stipulating that Ms. Zhao would receive all property, including the house and car, and would also raise their daughter, while Mr. Cui would solely bear the debt.

Despite completing the legal procedures, they continued living together, with neighbors unaware of their marital status. The plan unraveled in 2024 when Mr. Cui discovered Ms. Zhao was in a relationship with someone else, turning their "fake divorce" into a real separation.

Believing the previous agreement was solely to safeguard assets, Mr. Cui sued his ex-wife in Minhang District Court, requesting a review of the property division.

The court determined that the couple had no intention of ending their marriage at the time of registration. The divorce occurred when Mr. Cui was heavily indebted, and the agreement resulted in him losing all assets while shouldering all the debt. While the court ruled the divorce valid due to completed procedures, the clause dividing all property to Ms. Zhao was declared void as it did not reflect the true intentions of both parties. The child custody agreement, however, was upheld.

Ms. Zhao appealed, but the Shanghai No. 1 Intermediate People's Court upheld the original ruling. The presiding judge emphasized that a "fake divorce" cannot protect assets, stating that if property is transferred to evade debt obligations, creditors still have the right to demand these assets for recovery.

Nhat Minh (Source: Sina, Sohu)