Disputes Over Business Ownership During Divorce in Vietnam – What You Need to Know

Jun 24

1. How is business ownership determined under the law?

For a Single-Member Limited Liability Company (LLC), the individual owner has full authority to decide on the company's charter, organizational structure, investment, profit distribution, share transfer, and more—based on the 2020 Law on Enterprises.

For a Joint Stock Company, ownership is determined by the number of shares held by either spouse, in accordance with the company's charter and the Law on Enterprises, and is further governed by Article 59 regarding member/shareholder rights.

2. Can a business get caught in a "legal storm" after divorce?

Yes—especially if either spouse is the owner or a significant shareholder. Common risks include:

A spouse demanding management rights, leading to internal conflict;
Unauthorized transfer of shares to avoid asset division;
Unilateral changes to the company charter, affecting governance;
Blocking the other spouse from making key business decisions.

3. If the business is a marital asset – how can you protect it?

According to Article 59 of the Law on Marriage & Family, a business established during the marriage is considered a marital asset and is subject to a 50/50 division, unless there is a notarized agreement stating otherwise.

3.1. Pre-marital or investment agreement

It is advisable to create a property agreement (such as a prenuptial or spousal contract) to determine which share belongs exclusively to whom. This serves as a legal "shield" to prevent future business-related asset disputes.

3.2. Arrangement of management rights

If you are the major shareholder, consider:

Amending the company charter to limit decision-making powers;
Agreeing in writing on voting ratios, board appointments, or supervisory roles.

4. What to do when a dispute arises?

Internal negotiation: should be prioritized as it is quicker and less costly.
Business arbitration: efficient and confidential, suitable for ongoing operations.
Court litigation: adheres to both the Law on Enterprises and the Law on Marriage & Family. The court will review the charter, capital contributions, and operational strength to ensure fair division.

5. When should you act?

As soon as signs of divorce appear: review ownership, charter terms, and the company’s situation to assess potential risks.
When making new capital contributions: any new investments should be clearly recorded to avoid future disputes.

DEDICA Law Firm – Your Legal Partner

If you're facing potential disputes over business ownership due to divorce, DEDICA is here to help with customized legal strategies—from reviewing company charters, tracking capital contributions, drafting agreements, to resolving internal or court-based conflicts.