"The couple B owes me 200 million VND but neither is willing to take responsibility for the debt, citing the reason that they have divorced. However, upon investigation, it is found that the couple is still living together. Therefore, did the couple B fake their divorce to evade the debt? If so, how will this case be handled by the law in Vietnam?" - This is a question from Mr. N.V.T to Lawnet
Article table of contents
What are penalties for act of faking divorce to evade debts in Vietnam? (Illustrative photo)
Regarding this matter, LawNet would like to answer as follows:
According to Clause 14, Article 3 of the Law on Marriage and Family 2014, divorce is the termination of the husband and wife relationship based on a legally effective judgment or decision of a court in Vietnam. Simultaneously, Articles 55 and 56 of the Law on Marriage and Family 2014 stipulate two cases of divorce in Vietnam as follows:
- Consensual Divorce: In cases where the husband and wife voluntarily divorce and have agreed on asset division, care, nurturing, and education of the child based on ensuring the legitimate rights of the wife and child, the court will recognize the consensual divorce.
- Divorce at the request of one party: In cases where the husband or wife commits domestic violence or seriously violates the rights and obligations of the spouse, making the marriage severely troubled, the joint life cannot be prolonged, and the purpose of the marriage is not achieved, the husband or wife can request the court to resolve the divorce.
Furthermore, Clause 15, Article 3 of the Law on Marriage and Family 2014 stipulates that a pseudo-divorce is an act of exploiting divorce to evade financial obligations, violate population policies, or achieve another purpose that is not intended to end the marriage.
Thus, according to the above regulations, divorce is the termination of the husband and wife relationship when the marriage is severely troubled, the joint life cannot be prolonged, and the purpose of the marriage is not achieved, allowing the husband or wife to request the court to resolve the divorce. However, in practice, there still occur pseudo-divorce cases aimed at other purposes rather than due to a troubled and unmanageable marriage. Pseudo-divorce is an act of exploiting divorce for purposes such as:
- Evading financial obligations (e.g., the husband and wife conduct a pseudo-divorce to transfer all assets to one party and avoid debt repayment responsibilities);
- Violating population policies (e.g., the husband and wife conduct a pseudo-divorce to have the third, fourth, fifth child, etc.);
- Achieving another purpose not aimed at ending the marriage.
Therefore, in the case of Mr. B and his wife who have divorced but continue to live together, it may be considered a pseudo-divorce. If this case indeed involves Mr. B and his wife exploiting the divorce to evade financial obligations (debt repayment responsibilities) and not due to a severely troubled and unmanageable marriage, Mr. B and his wife may be administratively fined up to 20 million VND. Specifically, Clause 2, Article 59 of Decree 82/2020/ND-CP stipulates a fine of 10,000,000 VND to 20,000,000 VND for the act of exploiting divorce to evade financial obligations, violating population policies, or achieving another purpose not aimed at ending the marriage, or deception in divorce in Vietnam.
“Article 59. Violations of regulations on marriage, divorce, and monogamous marriage policies
…
2. A fine of 10,000,000 VND to 20,000,000 VND shall be imposed on any of the following acts:
c) Forcing or deceiving in marriage; forcing or deceiving in divorce;
d) Exploiting divorce to evade financial obligations, violate population policies, or achieve another purpose not aimed at ending the marriage.”
Therefore, when discovering that Mr. B and his wife have engaged in a pseudo-divorce, Mr. N.V.T can report this illegal act. At the same time, file a lawsuit with the court where Mr. B and his wife reside to request the resolution of the joint debt of the couple, despite the fact that they have divorced but both still bear the responsibility of debt repayment to Mr. T.
Ty Na
