Both spouses were Hong Kong residents married in the United States. The wife obtained a decree absolute in the Hong Kong District Court in November 2023. They then disputed the division of assets in mainland China: real property in Guangdong, rental income from it, and bank deposits in the wife’s name.

Issues

Which court has jurisdiction over the mainland assets; whether mainland or Hong Kong procedure and substantive law applies; and how mainland law treats the division of matrimonial property.

Outcome

The firm advised that the mainland courts have jurisdiction over immovable property situated in the mainland, that the law of the forum governs procedure while the characterisation of the property follows mainland law for mainland assets, and that pre- and post-marital property must be distinguished by reference to Article 1062 of the Civil Code.