Think of entropy as a measure of randomness or disorder. The higher the temperature, the more disorder there is, so heating something up increases the entropy. But the more disordered a system already is (i.e. the higher its temperature), the less additional disorder is introduced by adding a given amount of heat. (Statistical mechanics could quantify this by determining the distribution of energy states.) So we divide Q by T to give the change in entropy, and find it works.
Consider the fact that heat flows from a hot body to a cold one, not the other way around. The heat lost by the hot body is equal to that gained by the cold body. But the entropy lost by the hot body, -dQ/Th, is less than the entropy gained by the cold one, dQ/Tc. So the entropy of the universe increases, and the process is spontaneous.