Determination of the obligation to pay debts of husband and wife in Vietnam

First, debt incurred to meet family needs

- In cases where the debt arises related to the family's ordinary needs such as:

• Food, clothing, electricity, water, regular travel, necessary access to information for life and work, entertainment, recreation, rest.
• Necessary expenses for children's education (books, school uniforms, tuition fees, extra classes…) and expenses for enhancing job-related costs and skills for the husband or wife (professional skill training, foreign language improvement…).

==> The assets used to fulfill obligations will be determined as follows:

• Obligations established by both persons: the assets used for payment will be the separate property of the wife, the separate property of the husband, and the common property of the husband and wife (Clause 1 Article 37 Law on Marriage and Family 2014 of Vietnam).
• Obligations established by one person but legally transacted and meeting the essential needs of the family: still the three categories of assets mentioned (Clause 2 Article 37 Law on Marriage and Family 2014 of Vietnam).

- In cases where the debt is related to alimony obligations (family is understood narrowly to include husband, wife, and children).

Alimony for normal members: grandparents, parents, siblings…

Alimony for non-normal members: wife, husband, children from previous marriages; illegitimate children.

==> The assets used to fulfill obligations are the separate property of the person with the alimony obligation (Clause 1 Article 45).

Second, debt linked with property

- In cases where the debt is linked with separate inherited property or personal gifts ==> The assets used to fulfill obligations (1 category of assets) are the separate property of the person related to the inheritance or gift (The law does not specify but in reference to Clause 1 Article 43, separate inherited property and personal gifts are separate property, thus, obligations will also be fulfilled from the separate property of one spouse).

- In cases where the debt arises due to the preservation or maintenance of separate property.

• Preservation, repair of separate property which are assets used to fulfill the obligation: the separate property of the owner (Clause 2 Article 45), the common property of the husband and wife (Clause 2 Article 45, Clause 4 Article 37).
• Property use tax (House tax, land use tax…) which are assets used to fulfill the obligation: the separate property of the wife (husband) (Clause 2 Article 45), the common property of the husband and wife (Clause 4 Article 37).
• Restoration, upgrading of property which are assets used to fulfill the obligation: the separate property of the owner (Clause 2 Article 45).

- In cases where the obligation is linked with the common property ==> The assets used to fulfill obligations: the separate property of the wife, the separate property of the husband, the common property of the husband and wife (If restoring or upgrading common property where one spouse alone establishes the transaction è the assets used to fulfill the obligation: the common property of the husband and wife, the separate property of the spouse who carried out the restoration).

Third, determining the debt repayment obligation based on the time of transaction establishment

- In cases where the transaction is established before marriage ==> The assets to fulfill the obligation: the separate property of the person who independently established the transaction (Clause 1 Article 45).

If the transaction is established before marriage but the common property benefits from it, the assets for the obligation will include the separate property of the person who independently established the transaction and the common property of the husband and wife.

- In cases where the transaction is established during the marriage period.

• One person establishes, the other disagrees, but the common property benefits ==> The assets to fulfill the obligation: the separate property of the person who established, the common property of the husband and wife.
• One person establishes, the other disagrees, and the common property does not benefit ==> The assets to fulfill the obligation: the separate property of the person who established.

Fourth, debt arising from illegal acts

- Both spouses perform illegal acts ==> The assets to fulfill the obligation are the common property of the husband and wife, the separate property of the wife, and the separate property of the husband.

- One person performs an illegal act, the other disagrees, but the assets obtained from the illegal act serve the essential needs of the family ==> The assets to fulfill the obligation: the common property of the husband and wife, the separate property of the person who performed the illegal act.

- One person performs an illegal act, and the assets obtained from the illegal act do not serve the essential needs of the family ==> The assets used to fulfill the obligation are the separate property of the person who performed the illegal act.

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