The case of Gao v. Yang and Zhu—An Execution Objection and an Action for Judicial Review of an Execution Objection Filed by a Third Party
2025-12-25
[Title] Gao v. Yang and Zhu: Case of Third-Party Objections to Enforcement and Litigation on Enforcement Objections
[Keywords] Third-party objection to enforcement; Third-party action for objection to enforcement; Divorce agreement; Exclusion of enforcement
【Key Points of Judgment】 According to the divorce mediation agreement between the spouses, the court issued a civil mediation statement transferring ownership of the jointly-owned property to one party. However, this does not preclude the court from enforcing execution against the property in an enforcement case where the other spouse is the judgment debtor.
[Basic Facts of the Case] In the course of enforcing the civil loan dispute between the applicant Yang and the respondent Zhu, the court seized a property registered under Zhu’s name and was preparing to appraise and auction it. A third party, Gao (Zhu’s former spouse, now divorced), filed an objection to the enforcement proceedings, arguing that the property seized by the court had already been awarded to the third party Gao by a final and effective civil mediation agreement issued by the court following their divorce. Gao further claimed that since the property is subject to a bank mortgage loan, its ownership cannot be transferred and re-registered. Although the property is currently registered in Zhu’s name, Gao maintains that the true owner of the property is herself and requests the court to halt the enforcement proceedings against this property.
[Judgment Result] The People’s Court of Shenhe District, Shenyang City ruled: Dismiss the objection raised by third party Gao. The People’s Court of Shenhe District, Shenyang City rendered the following judgment: Dismiss the plaintiff Gao’s claim.
[Reasoning of the Court] The court holds that although Gao and Zhu had already reached a mediated divorce agreement before the judgment in this case, under which the house was assigned to Gao and the mortgage loan was to be repaid by Gao, such an agreement is legally binding only between Gao and Zhu. Since the house seized by the court constitutes jointly-owned marital property, the agreement has harmed the interests of the judgment debtor’s creditors. Therefore, the right enjoyed by Gao pursuant to the civil mediation agreement to the seized property cannot shield the property from enforcement proceedings initiated by the court.
[Relevant Statute] Article 9 of the Property Law of the People's Republic of China;
Article 8 and Article 24 of the “Interpretation (II) of the Supreme People’s Court on Several Issues Concerning the Application of the Marriage Law of the People’s Republic of China”;
Article 19 of the Marriage Law of the People's Republic of China;
Article 24 of the “Provisions of the Supreme People’s Court on Several Issues Concerning the Handling of Objections and Review Cases by People’s Courts.”
[Lawyer’s View] The debt involved in the case constitutes a joint debt incurred by the spouses during the duration of their marriage. Even if, through divorce proceedings, the jointly-owned property acquired during the marriage is mediated to belong solely to one spouse, as long as such arrangement prejudices the interests of the creditor of the spouse who is the party subject to enforcement, the court cannot exclude the compulsory execution of the marital joint property.
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