After Divorce, Who Pays the Debt? How to Resolve Joint and Separate Debt Disputes in Vietnam

After a divorce, besides dividing property and custody of children, one of the most complex and emotionally charged issues many couples face is the handling of joint and separate debts. Who is responsible for the debt? Which debts are considered personal, and which are joint? If one spouse borrows money for personal spending, is the other legally obligated to pay? In this article, Dedica Law Firm shares the latest legal regulations and practical approaches to help clarify how to deal with post-divorce debts in Vietnam.

1. Understanding the Concepts: What Are Joint and Separate Debts?

According to the Law on Marriage and Family 2014, joint debts are financial obligations created by both spouses or incurred for essential family needs. For example, loans for home repairs, daily expenses, children’s education, or shared business activities are typically considered joint debts. Regardless of who signed the loan agreement, both spouses share responsibility for repayment.

In contrast, separate debts are financial obligations incurred for personal purposes, such as loans for private investments, gambling, or luxury purchases that do not serve the family's interest. In such cases, the other spouse is not liable, provided there is sufficient evidence to prove the debt was personal.

An important point to note: Not all debts incurred during the marriage are automatically considered joint debts. Courts will examine the purpose of the loan, the beneficiary, and the accompanying evidence to determine whether the debt is joint or separate.

2. How Are Debts Handled During Divorce?

2.1 If Both Parties Can Reach an Agreement

During divorce proceedings, the couple can agree on how to divide responsibility for the debts. If the agreement is mutual and complies with the law, the court will recognize and formalize it in the divorce judgment. This is usually the simplest and least costly resolution.

However, if the debt involves a third party (such as a bank or a private lender), the couple’s agreement does not alter their obligations to that creditor—unless the creditor agrees to the arrangement.

2.2 If No Agreement Is Reached: Let the Court Decide

When the spouses cannot agree, the court will determine how to handle the debt based on several factors:

When was the debt incurred—before, during, or after the marriage?
Who took out the loan? Was it with the knowledge or joint signature of both parties?
What was the loan used for? Was it for family needs?

If the court determines it was a joint debt, it will usually divide repayment obligations equally (50:50), unless evidence shows unequal contributions. If deemed a separate debt, the party who incurred it must pay it alone.

3. Practical Examples of Post-Divorce Debt Disputes in Vietnam

In many divorce cases, disputes over debt responsibility are not straightforward. In one case, a wife was held responsible for a joint debt because she couldn’t prove her husband had borrowed the money for gambling. In another case, although the husband was the only one who signed the loan agreement, he proved that the loan was used to purchase household appliances, so the court required both parties to repay.

A common misunderstanding is that being the sole signatory on a loan means sole responsibility. In fact, if the loan served the household or was for a shared business venture, both spouses can be held jointly liable—even if only one signed the contract.

There are also cases where one spouse repaid the debt on behalf of both and later requested the court to compel the other to reimburse their share. However, if there is no clear agreement or supporting evidence, reclaiming that amount can be legally challenging.

4. How to Avoid Debt Disputes After Divorce

To avoid legal disputes regarding debts after divorce, consider the following tips:

Keep all documents and evidence: Loan agreements, text messages, bank transfer slips, and receipts can help clarify the purpose of the debt.
Make a written agreement before borrowing: If one spouse borrows money for personal use, they should sign a written commitment confirming the debt is separate. Ideally, both parties should sign it, and it should be notarized.
Clearly define debt responsibilities in the divorce agreement: Specify who is responsible for each debt and how it will be repaid to prevent future conflict.
Negotiate with creditors (if possible): If the debts are not yet fully resolved, both spouses should try to negotiate with the creditor to clearly outline each party's obligations in writing.
Avoid fake divorces to evade debt: If it is discovered that a couple divorced solely to avoid repaying a debt, the law may treat it as fraud and impose penalties.

5. Conclusion

Disputes over joint and separate debts after divorce are among the most common but also the most misunderstood and mishandled. Understanding the legal framework in Vietnam, correctly identifying the nature of each debt, and preparing full documentation are key to protecting your legal rights.