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Chinese businesswoman gave $420,000 for subordinate’s divorce, later demanded repayment after split
A Chinese businesswoman lost her case after paying her subordinate’s divorce settlement and later demanding the money back.
A businesswoman in Chongqing, south-western China, became embroiled in a courtroom dispute after paying three million yuan (US$420,000) to her younger married subordinate in order to end his marriage. The entrepreneur, identified only by her surname Zhu, later demanded the money back when the relationship collapsed, according to a report by the South China Morning Post (SCMP).
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The younger man, known as He, had joined Zhu’s company while both were married. Zhu quickly developed feelings for him and the two began an affair. They agreed to divorce their respective spouses and start afresh together.
Payment to facilitate divorce
To help He separate from his wife Chen, Zhu transferred three million yuan directly to Chen. The sum was described as compensation for the divorce and as financial support for the upbringing of their child. With the money paid, He finalised his divorce and moved in with Zhu.
However, after a year of living together, the couple decided they were incompatible. Zhu then filed a lawsuit against He and Chen, demanding the return of the entire amount.
Conflicting court rulings
In the first trial, a Chongqing court ruled in Zhu’s favour, stating that the payment breached public order and good morals, thereby constituting an “invalid gift.” As a result, the court ordered He and Chen to refund the money.
Chen and He appealed. The case reached a higher court, which disagreed with the initial judgement. Citing evidence examined by the Huashang Daily and reported by SCMP, the appellate court said Zhu had failed to prove the payment was a personal gift to Chen. Instead, it was regarded as money He owed his wife as part of the divorce settlement and for child-rearing expenses.
Appeal court’s decision
The upper-level court also criticised Zhu’s conduct, observing that she had used her wealth to hasten He’s divorce and then sought to reverse the transaction when the romance faltered. The judges noted her lack of integrity in attempting to reclaim the payment under such circumstances.
