Mom Ordered to Pay Back 220,000 Yuan After Draining Young Son's Red Envelope Savings Ahead of Divorce

A mother in Shanghai has been ordered by a court to repay 220,000 yuan (US$32,490) to her 5-year-old son after she withdrew from his savings account, People's Daily reported today.

The boy, identified as Xiao Nuo, had accumulated nearly 300,000 yuan over five years from Chinese New Year red envelopes, birthday gifts, and cash presents from relatives. The account was opened by his parents shortly after his birth specifically to hold such gifts.

When the parents began divorcing, the mother, surnamed Li, transferred out most of the funds over several months, leaving only about 40 yuan in the account. The father discovered the withdrawals and filed a lawsuit on behalf of their son.

In court, Li defended her actions, arguing that the money was not entirely from relatives but included some of her own deposits.

"I have always done my best to raise my son," she told the court. "The money I transferred out was spent on his tutoring classes and daily necessities. I never embezzled his money."

However, the judge noted that Li could not produce clear records for more than 200,000 yuan in withdrawals. Court hearings revealed that a significant portion of the large-sum transfers occurred during the months when the couple was arguing and preparing for divorce.

The court determined that while some of the funds had indeed been used for the boy's legitimate expenses — such as hobby classes and daily needs — the majority of the large withdrawals could not be justified.

Under China's Civil Code, guardians may not dispose of a minor's property except for the purpose of safeguarding the minor's interests. The court ruled that the money in Xiao Nuo's account constituted gifts from relatives to the child, meaning ownership belonged solely to the boy. Parents have the right to manage the funds, but not to own or freely spend them.

After reviewing the case, including the child's age, normal living expenses, and documented costs, the Songjiang District People's Court deducted confirmed necessary expenditures and ordered Li to return 220,000 yuan to her son.