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3h ago

Chinese Appellate Court Rejects Businesswoman’s Bid to Reclaim 3 Million Yuan Paid for Subordinate’s Divorce

The panel ruled the money constituted divorce-related compensation owed by the subordinate, not a personal gift.

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A Chinese businesswoman funded her subordinate’s divorce but failed to reclaim the money when their relationship ended.
Shortly after He joined her company, Zhu became attracted to him. Although both were married at the time, they quickly started an affair. Photo: Shutterstock

Overview

  • Reporting identifies the entrepreneur as Zhu, her employee as He, and his former wife as Chen, with the case rooted in Chongqing, southwestern China.
  • Zhu transferred three million yuan (about US$420,000) directly to Chen to hasten He’s divorce after starting an affair with the younger subordinate.
  • In the first instance, a Chongqing court labeled the transfer an “invalid gift” that violated public order and ordered He and Chen to refund the funds.
  • On appeal, judges found Zhu failed to prove a personal gift to Chen and reclassified the payment as He’s divorce and child-rearing obligations.
  • The appellate decision also criticized Zhu’s conduct in financing the breakup then seeking repayment, a stance that echoed widespread online condemnation.