Multi-Million Dollar Divorce And The Invaluable Lessons On Assets, Debts From The Case Of Ms. M. And Mr. K.
Case Summary: A Divorce and a "Multi-Million Dollar" Dispute
Ms. M. and Mr. K. married in 1994, but after many years of living together, conflicts arose, leading them to separate in 2018 and eventually decide to divorce. Regarding their children, they have three children, two of whom are adults. For their youngest child, D., both parents wished to directly raise her without requiring child support from the other party.
The most complex aspect of the case lay in the dispute over assets and debts. Ms. M. and Mr. K. owned two large real estate properties in P City, Ha Nam Province, with a total value of billions of Vietnamese dong. Each party desired to possess the higher-value asset, leading to disagreements in the division.
Notably, the story became more intense when four third parties (Mr. T., Ms. H., Ms. M., and Ms. C.) unexpectedly demanded that Ms. M. repay a total of over 3.3 billion VND, claiming these were loans taken by Ms. M. during the marriage. Mr. K. was completely unaware of these loans and denied joint liability.
Following the initial judgment, both Ms. M. and Mr. K. appealed. Ms. M. sought a 60-40 asset division in her favor, wanted to receive the property in L ward, and requested that all aforementioned debts be recognized as common marital debts, obligating Mr. K. to share responsibility. She also requested a re-valuation of the assets. Mr. K., on the other hand, sought a 60% share, denied his wife's specific debt as a common debt, and objected to the re-valuation.
Ultimately, the appellate court rendered its judgment:
It upheld the initial judgment recognizing the consensual divorce and granting custody of child D. to Ms. M.
It divided the common assets, with Mr. K. being required to pay Ms. M. a difference of nearly 918 million VND.
Regarding debts, the court ordered Ms. M. and Mr. K. to jointly pay 805 million VND to one major creditor, while Ms. M. alone was held responsible for the remaining debts to other parties.
Legal Advice from Dedica Law Firm
From the case of Ms. M. and Mr. K., we would like to offer crucial advice to individuals and families:
Clear Records of Common/Separate Assets and Debts: In marriage, all financial transactions, especially large loans or investments, must be transparent and clearly documented. If possible, both spouses should co-sign important transactions to avoid disputes later. This case shows that Ms. M.'s debts, even if unknown to Mr. K., could still be considered common if their purpose served the family's needs (e.g., for building a house, family business).
Importance of Asset Valuation: In divorce cases involving asset disputes, asset valuation is a key factor. Parties should proactively request valuation or appeal the asset values within the legal timeframe if they believe the valuation is inaccurate. Requesting re-valuation at an improper time may be rejected, as was the case for Ms. M.
Understanding Debts in Marriage: According to legal regulations, spouses have joint liability for transactions aimed at meeting essential family needs or other transactions arising from the couple's business activities. However, if a debt is determined to be solely one party's and does not serve a common purpose, the other party will not have joint liability. Proving the purpose of the loan is extremely important.
The Indispensable Role of a Lawyer: A complex divorce case like Ms. M.'s and Mr. K.'s requires deep understanding of the law, the ability to collect and prove evidence, and litigation experience. Having a lawyer by your side will help you:
Understand your rights and obligations.
Prepare complete and accurate files and evidence.
Represent and protect your interests in court, ensuring procedures are followed legally.
Avoid unfortunate mistakes during the litigation process.
Contact Dedica Law Firm:
If you are facing similar issues regarding marriage, family, asset disputes, or debts, do not hesitate to contact Dedica Law Firm. With a team of experienced and highly specialized lawyers, we are committed to providing dedicated, professional legal advice and support, helping you protect your legitimate rights and interests to the fullest extent.
Phone: (+84) 39 969 0012 (We are available on WhatsApp, WeChat and Zalo)
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Call us now or leave us a message to get advice. Initial consultation is free of charge.
