GUIDELINES ON DIVISION OF ASSETS AFTER DIVORCE UNDER THE LATEST 2025 REGULATIONS

The division of assets after divorce is a mandatory legal procedure. Spouses may mutually agree on the division of marital and separate property, as well as other financial obligations, or request the court to make a decision in accordance with the law.

Asset division and child custody are the two most important issues to be resolved in any divorce. If the parties can reach an agreement, it can save time and costs. However, if an agreement cannot be reached, either party has the right to request the court to resolve the matter according to legal provisions.

 
1. Principles for Dividing Marital Assets Upon Divorce

The division of assets is governed by Article 59 of the Law on Marriage and Family 2014, which outlines the following principles:

1.1. Principle of Equal Division

According to Clause 2, Article 59 of the Law on Marriage and Family, assets should be divided equally, considering the following factors:

· The financial and personal circumstances of both spouses;

· Each spouse's contribution to the acquisition, maintenance, and development of marital assets. Contributions to household work are also considered as income-generating efforts;

· The legitimate interests of each party in production, business, and professional activities to enable them to continue earning income;

· Faults of either party in violating marital obligations.

Note: The principle of equal division does not necessarily mean a 50:50 split of assets. Depending on factors such as financial contributions and circumstances, courts may decide on alternative ratios such as 40:60 or 45:55. In exceptional cases, divisions of 70:30 or even 80:20 may be considered lawful and appropriate.

 
1.2. Principle of Division in Kind (Assets in Their Current Form)

As a priority, assets will be divided in kind (physical form). If division in kind is not feasible, assets will be valued in monetary terms and distributed accordingly, with the party receiving the higher-value assets required to compensate the other for the difference.

 
1.3. Principle of Retaining Separate Property

Separate property remains under the ownership of the individual, unless it has been merged into marital property. If separate and marital assets are mixed, the party who contributed separate property has the right to receive compensation for the value of their contribution.

 
2. Determining Marital and Separate Assets

According to Articles 33 and 43 of the Law on Marriage and Family 2014, the determination of marital and separate property is as follows:

 
2.1. Determining Separate Property of Each Spouse

Separate property includes:

· Assets acquired before marriage: Property owned by either spouse before the date of marriage registration is considered separate property.

Example:
Mr. Nguyen married Ms. Tran on January 1, 2022. Mr. Nguyen acquired a piece of land on October 10, 2021, and Ms. Tran purchased a car on September 9, 2021. The land belongs to Mr. Nguyen, and the car belongs to Ms. Tran as separate property.

· Inherited or gifted property designated for one spouse: Property inherited or gifted to one spouse explicitly as separate property remains separate.

Example:
Mr. Nguyen married Ms. Tran on January 1, 2022. On May 1, 2022, Ms. Tran's father, Mr. Le, gifted her a piece of land, stating in the contract that it was a “separate gift.” The land remains Ms. Tran’s separate property, even though it was acquired during the marriage.

Important Note:
It is advisable to clearly specify the term “separate” in inheritance and gift contracts to avoid future disputes over ownership.

Sample Clause:
"I, Le Van D, hereby gift my daughter Le Thi D a house at [address] under land use certificate No. [certificate number], dated [date], as her separate property."

· Assets divided separately between spouses under specific agreements made during the marriage;

· Essential personal belongings and other assets as prescribed by law;

· Income generated from separate property, such as interest from a savings account established before marriage.

Example:
Ms. Tran had a savings account worth 1 billion VND before marrying Mr. Nguyen. Any interest earned from this account remains her separate property.

 
2.2. Determining Marital Property

According to Article 33 of the Law on Marriage and Family 2014, marital property includes:

· Assets acquired by either spouse during the marriage, including income from employment, business, or other legitimate sources;

· Inherited or gifted assets jointly received by both spouses;

· Land use rights acquired after marriage, unless specifically inherited or gifted to one spouse;

· All assets considered by both parties as marital property through a mutual agreement.

Note:
In the absence of evidence proving that an asset is separate property, it will be presumed to be marital property.

 
3. Division of Assets Upon Divorce

If spouses cannot reach an agreement on the division of marital property, the court will divide assets based on the principles outlined in Section 1. Assets acquired during the marriage are generally considered marital property unless proven otherwise.

Key factors influencing court decisions:

· Duration of the marriage;

· Financial and non-financial contributions of each spouse;

· Economic and living conditions of each party after divorce;

· Protection of the interests of minor children (if applicable).

 
4. Frequently Asked Questions About Asset Division

4.1. How are joint debts handled during divorce?

Joint debts incurred during the marriage will be considered marital obligations and must be divided accordingly, unless otherwise agreed upon by the parties.

4.2. Can marital assets be divided through a private agreement?

Yes. Spouses are encouraged to reach a private agreement on asset division. Such agreements must be documented in writing and notarized to ensure legal validity.

4.3. Can one spouse receive a larger share of marital property?

Yes, depending on various factors such as child custody responsibilities, financial contributions, and health conditions, the court may award a larger share of the assets to one party.

 
5. Conclusion

The division of assets after divorce is a critical legal process that requires careful consideration and compliance with legal regulations. Spouses are encouraged to negotiate amicably to achieve the best outcomes. However, if disagreements arise, legal proceedings provide a fair and lawful resolution based on established principles.

For professional legal advice and assistance with asset division after divorce, please contact ADVN Law.