Sociological theories of family change have primarily used empirical evidence from wealthy western countries such as the United States and European countries as their basis of support, yet not much is known about the applicability of these theories on countries with distinctive social and familial traditions like China. Drawing on the Chinese Family Panel Studies (2010, 2012, 2014), I analyze the patterns, mechanisms, and implications of rising divorce rates in China over the past three decades. I use cohort studies, event history analyses, and actor-partner interdependence models to study the changing associations between 1) education and divorce and 2) fertility and divorce in post-reform China, and 3) the implications of rising status hypergamy on marital stability and satisfaction in the country. Research findings reveal how divorce decisions are shaped by rising female education with persistent gendered inequality and liberalizing marriage laws with continuing fertility control, as well as the implications of persistent status hypergamy on marital well-being. Overall, this dissertation demonstrates how social inequalities are manifested and reproduced through divorce in China. I argue that even though China witnessed several demographic changes described by the Second Demographic Transition, such as rising divorce and cohabitation rates, persistent gender disparities in both private and public sectors and heavy state interventions have greatly influenced Chinese family transitions in the post-reform era. Divorce has become a new mechanism of social stratification in post-reform China and has profound implications on both adults’ and children’s well-being.