How to divide assets during divorce in Vietnam when there are assets abroad?
When one or both spouses own assets overseas, the process of asset division during divorce becomes more complicated—but not unmanageable if you understand the correct principles and legal regulations. In this article, we will comprehensively explain the procedures and steps involved in dividing assets that have foreign elements.
Key Principles When Dividing Assets with Foreign Elements
Legal Regulations for Foreign-Based Assets
According to Article 127 of the Law on Marriage and Family 2014:
Divorce between a Vietnamese citizen and a foreigner, or between two foreigners residing in Vietnam, is resolved by a court in Vietnam.
If one party is Vietnamese but there is no common residence, the law of the common residence applies; if none, Vietnamese law will still be applied.
For real estate assets located abroad, the division must be handled in accordance with the laws of the country where the asset is located—not under Vietnamese law.
In summary: Vietnamese courts handle divorce and the division of common property formed during the marriage. Assets abroad (e.g., houses, land, stocks) must be divided based on the laws of the country where those assets are located.
Principles of Asset Division under Vietnamese Law
For assets located in Vietnam (or abroad, if both parties agree to divide them under Vietnamese law):
Spouses can agree on how to divide assets; otherwise, the court will apply regulations under Article 59 and related provisions (Articles 60–64) of the Law on Marriage and Family 2014.
Basic principle: equal division, but the court may consider:
Personal circumstances (health, income, dependents)
Contribution of each spouse (including domestic labor equivalent to income)
Protection of professional rights (the party generating income/business may retain relevant assets)
Faults or violations (e.g., neglect of family, breach of marital obligations)
Tangible property should be divided in-kind if identifiable; otherwise, it should be divided by value with compensation for any discrepancy.
If common assets are merged into a larger family estate and become indistinct, the court may separate and divide them under the law.
Recognizing Foreign Judgments in Vietnam
If both parties have divorced and divided assets abroad but wish to recognize or enforce the decision in Vietnam:
According to the 2015 Civil Procedure Code (CPC), a civil/marital/property judgment or decision can be recognized in Vietnam if:
There is an international treaty between the two countries,
Or based on reciprocity,
And it does not violate the fundamental principles of Vietnamese law.
For property matters, if a foreign ruling orders the transfer of real estate that a foreigner is not permitted to own in Vietnam, the decision will not be recognized.
Step-by-Step Procedure for Asset Division with Foreign Elements
Step 1 – Prepare Divorce and Asset Division Documentation
Based on guidance from law firms like GV Lawyers, Sunny, and Khac Long:
Divorce petition (either mutual or unilateral)
Personal documents: passport, ID card, household registration/temporary residence; for foreign marriages, documents must be legalized and registered at the Department of Justice
Marriage certificate (original or certified copy); if lost, provide a certified copy and a written explanation
Birth certificates of common children (if any)
Documents proving ownership of assets, common and separate debts—including overseas assets (must be translated, notarized, and legalized if necessary)
Step 2 – File and Process the Case in a Vietnamese Court
Submit the file to the court where the defendant resides or where the joint property in Vietnam is located.
The court will examine documents and request payment of advance court fees; the file is then forwarded to the People’s Procuracy for processing.
The court only handles the portion of property involved (including overseas assets if agreed upon or subject to separate legal treatment). Foreign real estate is not under the jurisdiction of Vietnamese courts; instead, the court may guide on judicial assistance or coordination with foreign courts for verification and application of foreign law.
Step 3 – Trial and Court Decision
After acceptance, the court will conduct a reconciliation session (if not already agreed) or proceed to trial. The expected timeline is 4–6 months from acceptance if the documentation is complete.
The court will issue a judgment on the divorce and asset division, clearly defining which assets are subject to Vietnamese law and how overseas assets should be handled under the respective country’s law.
Step 4 – Enforcement of the Court’s Judgment on Asset Division
For assets in Vietnam: enforced under the CPC; the court may assign enforcement agencies to apply measures if needed.
For assets abroad:
If both parties agree to perform actions abroad: they handle transactions independently.
If recognition in Vietnam is needed: submit an application for recognition of the foreign judgment/asset. If all conditions are met, it will be protected. If the foreign decision violates Vietnamese law (e.g., asset transfer not permitted), it will be denied recognition/enforcement.
Conclusion: Summary for Effective Asset Division
Classify assets by jurisdiction—Vietnam or abroad.
Prepare clear documentation; legalize foreign documents if necessary.
Agree on division or petition the court—apply Vietnamese or foreign law as applicable.
Enforce court decisions in Vietnam; coordinate or follow procedures abroad if needed.
If necessary, apply for recognition of foreign judgments in Vietnam, ensuring compliance with legal prohibitions under Vietnamese law.
Benefits of Legal Support from Professional Lawyers
Lawyers help distinguish joint/separate assets, conduct valuation, identify asset origins, and prepare correct legal documentation.
Assist in negotiation or legal strategy with the court to maximize protection of your rights.
Support in recognition of foreign judgments/assets, handle judicial assistance accurately, and prevent legal risks from impractical decisions.
Contact DEDICA Law Firm for expert legal consultation!
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