The first decade of the 21st century witnessed great change in China and in its family law also. The Third Judicial Interpretation of the Marriage Law of the PRC became effective on 13 August 2011. The author explores the background of the new judicial interpretation and its achievements including strengthening the protection of the vulnerable in the family, further clarifying the position of separate and common property, and correcting some procedural flaws in judicial practice. The author analyses the challenges facing family law after the Third Judicial Interpretation from three perspectives. First, the concept of the loyalty agreement, proposed but not accepted in the Interpretation, is explored. The author argues that the law should be cautious about enforcing morality in the field. Secondly, the amended article concerning funds provided by parents is discussed, focusing on its real impact on spouses. Thirdly, the author considers the use of paternity tests and argues that they must not be used in such a way as to damage children's interests.