Disputes Over Debt Obligations After Divorce – Who Is Responsible and How to Handle It Effectively

When a couple divorces, in addition to disputes over child custody, alimony, and property division, joint debt obligations can become a major source of conflict. Many people assume that divorce ends all responsibilities—including debts—but legally, that’s not necessarily the case. This article will help you better understand debt-related disputes in divorce in Vietnam, covering legal grounds, division principles, and litigation procedures so you can protect your rights if faced with such a situation.

1. Legal Basis & Definitions of Joint and Separate Debts

1.1. Joint and Separate Debts under the Law on Marriage & Family

According to Article 37 of the Law on Marriage and Family 2014, spouses have joint property obligations, including:

• Obligations arising from transactions agreed upon by both spouses;

• Obligations incurred by either spouse to meet essential family needs;

• Obligations arising from the possession, use, or disposition of common property or from using personal property to develop joint property.

Meanwhile, Article 45 specifies separate obligations of either spouse, including:

• Debts incurred before the marriage;

• Debts arising from the use or disposition of personal property (if not part of joint property);

• Debts resulting from transactions not for family needs or due to one spouse's illegal acts.

Therefore, not all debts incurred during marriage are joint debts to be equally shared. The nature, purpose, and context of each debt must be considered.

1.2. Post-Divorce Debt Obligations Remain Valid

Article 60 of the same law affirms that rights and obligations toward third parties remain effective after divorce, unless otherwise agreed.

This means that if a debt incurred during the marriage remains unpaid by the time of divorce, the ex-spouses are still jointly liable for that debt, unless there's a clear agreement otherwise.

Furthermore, if the debtor and creditor have a separate agreement—e.g., only one party is responsible or debt is split unequally—that agreement can be upheld by the court as long as it’s lawful and properly documented.

2. How Debt Is Divided After Divorce – Principles & Common Scenarios

2.1. Principle of Joint Liability

Under Article 27 of the Law on Marriage & Family 2014, spouses are jointly liable for transactions conducted by one spouse under the conditions of mutual representation.

Joint liability means creditors can demand full repayment from either spouse. The paying party then has the right to seek reimbursement from the other party. This principle is also found in Article 288 of the Civil Code 2015.

2.2. Common Division Scenarios

• By mutual agreement: If both spouses agree on how to handle joint debt, they can request the court to include this agreement in the divorce judgment.

• No agreement: The court will divide the debt based on legal provisions, usually 50/50 unless adjusted based on factors like contribution, fault, or specific circumstances.

• Clearly identified separate debts: If a party can prove the debt is personal—such as pre-marriage loans, personal purchases, or debts unrelated to family needs—then the other spouse may not be held jointly liable.

For example, if the wife borrows money to renovate the family home, care for children, or purchase household items, this could be deemed joint debt—even if the husband didn’t sign the loan contract.

2.3. Sham Divorce to Evade Debt Obligations

Some couples use fake divorces to avoid repaying debts. Vietnamese law addresses this:

• A sham divorce is when a couple formally divorces without the genuine intent to end the marriage, but rather to avoid asset or debt responsibilities.

• Decree 82/2020/ND-CP states that abusing divorce to evade asset obligations may result in a fine of VND 10–20 million, and the unlawful gain must be returned.

• If discovered by creditors or related parties, the court may include the debt dispute in the ongoing divorce case and hold both parties accountable.

3. How to Handle Debt Disputes After Divorce – Step-by-Step Legal Guidance

If you’re facing a debt dispute after divorce, here’s how to proceed:

Step 1: Collect and Verify Evidence

• Loan contracts, debt acknowledgment letters, receipts, or third-party confirmations.

• Evidence of how the money was used (family needs, joint business, home repairs).

• Any written agreements between spouses regarding debt responsibility.

Step 2: Negotiate and Agree

Before going to court, attempt a mutual agreement. If successful, request the court to recognize this in the divorce judgment to prevent future disputes.

Step 3: File a Civil Lawsuit (if needed)

If no agreement is reached:

• File a lawsuit in the civil court where the loan agreement was made or where either spouse resides.

• Include the creditor as an involved party if necessary.

• If the divorce case is still open, request the family court to consolidate the debt dispute into the same proceeding (if applicable).

Step 4: Enforce the Judgment

• Once the court issues a ruling dividing the debt: if the responsible party fails to comply, you may request enforcement via civil judgment enforcement agencies.

• If one party pays the full debt, they can reclaim the other party’s portion through legal means.

4. Practical Tips to Avoid Risks

• Agree early: When taking out a loan during marriage, both parties should sign or clearly define who will repay.

• Draft a written agreement on debt division: Include this in the divorce application or a separate notarized document.

• Avoid sham divorces: If exposed, there could be administrative penalties and damage to reputation.

• Clarify the purpose of the loan: If the loan was personal and not for family needs, it may be considered a separate debt.

• Act quickly: According to the Civil Code, the statute of limitations for enforcing civil obligations is typically three years from the date the right is recognized.

5. Conclusion

Debt disputes after divorce are not a minor issue—they reflect financial obligations that survive beyond the end of a marriage. According to Vietnam’s Law on Marriage & Family 2014, Civil Code 2015, and Decree 82/2020/ND-CP, joint debts incurred during the marriage continue to be valid post-divorce, and both spouses may remain jointly liable unless proven otherwise.

If a dispute arises, gather evidence, seek negotiation, or take legal action when needed. Understanding your rights—and your obligations—can help protect your finances and peace of mind during and after divorce.

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