Resolving Disputes When a Spouse Unilaterally Sells Marital Property Before Divorce in Vietnam
When a marriage begins to fall apart, it is not uncommon for one spouse to unilaterally sell marital property—such as real estate, vehicles, or shares—before the divorce, often with the intent to conceal or “transfer away” assets. This article summarizes the latest legal regulations in Vietnam and provides practical strategies to help protect your legitimate rights and interests.
Note: This article references the Law on Marriage and Family 2014, the Civil Code 2015, and official legal interpretations by Vietnamese authorities, reflecting the current legal framework in Vietnam.
1. Identifying Marital Property – The Foundation of Any Dispute
Under the Law on Marriage and Family 2014, property acquired during marriage (such as income from employment, business, yields, or profits) is presumed to be joint property, unless proven otherwise (e.g., gifts or inheritances received individually, or assets designated as separate through a marital property agreement). When a divorce occurs, the division of joint property is governed by Article 59 of this Law.
Even if the certificate of ownership (e.g., land use right certificate, vehicle registration) bears only one spouse’s name, if the property is deemed joint, one spouse cannot unilaterally dispose of it. Legal commentary and practical guidance consistently affirm: “A land use right certificate in one person’s name may still represent joint property, and therefore requires the consent of both spouses.”
2. When May One Spouse Sell Property – and When Is the Transaction Invalid?
2.1. Transactions Requiring Both Spouses’ Consent
Under Clause 2, Article 35 of the Law on Marriage and Family 2014, the disposition of joint property must be agreed upon in writing by both spouses when it involves:
Real estate;
Movable property subject to ownership registration (e.g., cars);
Property that constitutes the main source of family income.
If this written consent is absent, the other spouse has the right to request the court to declare the transaction invalid and to handle its legal consequences in accordance with Decree 126/2014/NĐ-CP.
In addition, if the property sold is the family’s only residence, the law requires both spouses’ consent for any transaction establishing, performing, or terminating ownership—even if the house is registered in only one spouse’s name. The seller must still ensure the family’s housing rights.
2.2. When Consent Is Not Required
If an asset is proven to be separate property (e.g., inherited, gifted solely to one spouse, or formally designated as separate through an agreement), the owner may dispose of it independently. However, proving separate ownership can be complex and requires thorough documentation.
3. How to Handle Cases Where One Spouse Has Already Sold Joint Property
Step 1: Secure Evidence and Request Emergency Measures
Gather evidence: property ownership certificates, proof of acquisition during marriage, communications showing lack of consent, and any “asset-dissipation” signs (e.g., below-market sale prices, sale to relatives).
Request provisional measures: under the Civil Procedure Code, you may ask the court to freeze, seize, or prohibit transfers of the property if further transactions are likely.
The goal of this stage is to preserve the status quo so that the court can assess the validity of the sale and your rights.
Step 2: File a Lawsuit to Declare the Transaction Invalid
Pursuant to Clause 2, Article 35 of the Law on Marriage and Family 2014 and Decree 126/2014/NĐ-CP, if one spouse unilaterally disposes of property that legally requires written consent (e.g., real estate, vehicles, major income assets), you may petition the court to declare the transaction invalid.
The consequences of invalidity are handled under the Civil Code 2015, which requires both parties to return what they have received and compensate for damages where applicable.
Court practice in Vietnam shows that the lack of consent from the other spouse is a major factor in determining the invalidity of transactions involving joint marital property.
Step 3: Dealing with the “Good Faith Third Party”
The Civil Code 2015 protects “good faith purchasers” in some cases, especially where property has been transferred and registered according to law. If the buyer meets this “good faith” standard and the transaction is legally valid, the original owner may not reclaim the property but can seek damages from the spouse who sold it.
In practice, Vietnamese courts tend to invalidate sales when the buyer knew or should have known the property was marital but still proceeded without the other spouse’s consent—especially when the sale price was unusually low or involved family members.
Step 4: Claim Damages and Address Common Obligations
When a transaction is invalidated, the parties return what was received, and the at-fault party compensates for any loss. If the asset cannot be recovered because a third party was protected as a good faith purchaser, the wronged spouse may still demand compensation from the seller (and any accomplices).
4. Practical Strategies to Improve Your Chance of Success (in Vietnam)
Trace the asset’s origin: Establish whether it is joint or separate property, identify the funding source, and collect ownership records. This forms the core of your evidence in Vietnam.
Prove that written consent was required: For real estate, vehicles, or key income assets, lack of written consent is a fatal flaw in the transaction.
Expose the buyer’s bad faith: Show signs of collusion—unusually low price, urgency, kinship, or knowledge of impending divorce—to rebut “good faith” protection.
Use the “family residence” rule: Even if titled to one spouse, the family’s only home still requires mutual consent to protect the housing rights of both.
Request early emergency measures: Promptly apply for freezing or seizure orders to prevent further transfers.
Combine marital and civil actions: You may join the request for invalidation with the division of property during divorce, allowing the court to assess the full context.
Formalize property agreements: Verify the formality and validity (e.g., notarization) of any existing marital property agreement to reinforce your claim.
5. Frequently Asked Questions
(i) Can the spouse whose name is on the title sell the property alone?
No. If the asset is marital property or the family’s sole residence, the transaction requires both spouses’ consent, in writing for real estate or registered movable assets.
(ii) If the buyer has already transferred the title, can I reclaim it?
It depends. If you can prove the transaction is invalid or the buyer was not acting in good faith, the court may restore ownership to you. Otherwise, you can still seek damages from the spouse who sold it.
(iii) Must the claim be filed within the divorce case?
Not necessarily. You may file a separate civil lawsuit to invalidate the transaction, or include it in your divorce or post-divorce asset division case—depending on urgency and procedural strategy.
6. Documents to Prepare
Property ownership certificates (land use right certificates, vehicle registration, etc.);
Evidence of acquisition during marriage (purchase contracts, payment receipts, bank statements);
Proof of lack of consent (emails, messages, written refusals, meeting minutes);
Indications of abnormal sale conditions or close relationships between seller and buyer;
Petition for provisional measures (if necessary).
7. Conclusion
Under Vietnamese law, the disposition of marital property—especially real estate, registered movable property, or primary income-generating assets—requires written consent from both spouses. For the family’s sole residence, consent is mandatory to ensure housing rights.
If a spouse unilaterally sells property before divorce, act swiftly: collect evidence, apply for provisional measures, and file to invalidate the transaction, while preparing to counter the “good faith purchaser” defense under the Civil Code 2015.
Strategically, prioritize preserving the property, challenging validity, and proving bad faith. Even if recovery is impossible, you may still claim compensation from the party at fault.
Your choice of procedure (combined or separate claim), evidence structure, and emergency measures will determine how effectively you can protect your rights in Vietnam in this type of dispute.
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