How shall common debt of husband and wife be divided after divorce in Vietnam?

How shall common debt of husband and wife be divided after divorce in Vietnam?

Pursuant to Article 37 of the Law on Marriage and Famiily in 2014 stipulating common property obligations of husband and wife as follows:

Common property obligations of husband and wife

Husband and wife have the following common property obligations:

1. Obligations arising from transactions established under their agreement, obligations to pay damages under their joint liability as prescribed by law;

2. Obligations performed by a spouse in order to meet the family’s essential needs;

3. Obligations arising from the possession, use and disposition of common property;

4. Obligations arising from the use of separate property for maintaining and developing common property or for generating major incomes for the family;

5. Obligations to pay damages caused by their children as prescribed by the Civil Code;

6. Other obligations as prescribed by relevant laws.

Pursuant to Article 60 of the Law on Marriage and Famiily in 2014 stipulating settlement of property rights and obligations of husband and wife toward a third party upon divorce as follows:

Settlement of property rights and obligations of husband and wife toward a third party upon divorce

1. Property rights and obligations of husband and wife toward a third party remain effective after divorce, unless otherwise agreed by husband and wife and that party.

2. When a dispute arises over property rights and obligations, the settlement of such dispute must comply with Articles 27, 37 and 45 of this Law and the Civil Code.

As regulaitons above, after divorce, both husband and wife have the obligation to repay common debts, except in cases where the husband and wife have an agreement with the bank on determining who will be responsible for the debt.

In cases where the husband and wife cannot reach an agreement on the division of common debts after divorce, the Court will resolve it according to the provisions of the law.

How shall common debt of husband and wife be divided after divorce in Vietnam? - Image from Internet

Is it permissible to conclude oral agreement on common property used for business activities in Vietnam?

Pursuant to Article 25 of the Law on Marriage and Famiily in 2014 stipulating representation between husband and wife in business relations as follows:

Representation between husband and wife in business relations

1. When husband and wife jointly run a business, unless otherwise agreed by the husband and wife before taking part in the business relation or otherwise prescribed by this Law and other relevant laws, the spouse directly involved in the business relation is the lawful representative of the other in that relation.

2. In case husband and wife put their common property into business activities, Article of this Law shall apply.

Pursuant to Article 36 of the Law on Marriage and Famiily in 2014 stipulating common property used for business activities as follows:

Common property used for business activities

When husband and wife reach agreement on either spouse’s use of common property for business activities, this spouse has the right to make transactions related to that common property on his/her own. This agreement shall be made in writing.

As regulations above, it is compulsory to make agreement on common property used for business activities in writing.

What are cases of invalidated agreement on the matrimonial property regime in Vietnam?

Pursuant to Article 50 of the Law on Marriage and Famiily in 2014 stipulating invalidated agreement on the matrimonial property regime as follows:

Invalidated agreement on the matrimonial property regime

1. An agreement on the matrimonial property regime shall be declared to be invalid by a court when:

a/ It fails to meet the conditions on effect of transactions prescribed the Civil Code and other relevant laws;

b/ It violates Article 29, 30, 31 or 32 of this Law;

c/ Its contents seriously infringe upon the rights to be supported and inherit and other lawful rights and interests of parents, children and other family members.

2. The Supreme People’s Court shall assume the prime responsibility for, and coordinate with the Supreme People’s Procuracy and the Ministry of Justice in, guiding Clause 1 of this Article.

As regulations above, an agreement on the matrimonial property regime shall be declared to be invalid by a court when:

- It fails to meet the conditions on effect of transactions prescribed the Civil Code and other relevant laws;

- It violates following regulations:

+ General principles of the matrimonial property regime

+ Rights and obligations of husband and wife to meet their family’s essential needs

+ Transactions related to the home being the sole domicile of husband and wife

+ Transactions with third parties in good faith related to bank accounts, securities accounts and other movable assets not required by law to be registered for ownership and use

- Its contents seriously infringe upon the rights to be supported and inherit and other lawful rights and interests of parents, children and other family members.

Best regards!