Divorce involving foreigners in Vietnam and division of assets

Following the previous article on the conditions that parties, including foreigners, need to pay attention to when carrying out divorce in Vietnam, we provided an overview of issues related to competent authorities in divorce matters. However, that context only addressed marital issues without considering common property. In this article, we will share issues regarding divorce and division of assets, including common property, especially the handling of real estate, a matter in which the law still imposes restrictions on the rights of use and ownership of foreigners in Vietnam.

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Table of contents:

1. Principles of settlement of spouses’ property upon divorce

When a foreigner carries out divorce procedures in Vietnam, the most convenient situation is when the spouses have already reached an agreement on issues arising from the marital relationship: affection, children, property, debts, etc. The Court only needs to record the agreement and issue a decision recognizing the mutual consent to divorce and the parties’ agreement. Regarding property, the parties may agree with each other outside the Court; in order to ensure the performance of commitments by both parties, the spouses may also request the Court to record the agreement or resolve the division in accordance with the law. As for the regulations, currently, when resolving issues related to the common property of the spouses, the parties need to note the following important points:

In case the matrimonial property regime is under statutory law: the settlement of property is based on the parties’ agreement; if no agreement can be reached, at the request of the wife, the husband, or both spouses, the Court shall resolve according to the provisions of the Law on Marriage and Family and the Civil Code.

In case the matrimonial property regime is under agreement: the settlement of property upon divorce shall follow that agreement; if the agreement is not comprehensive or clear, the provisions of the Law on Marriage and Family and the Civil Code shall apply for resolution. As for the general principle, according to the provisions of the Civil Code, the Law on Marriage and Family, and other relevant legal documents, the common property of the spouses shall be divided equally, taking into account the following factors:

The fault of each party in violating the rights and obligations of the spouses;
The contribution of the husband and wife to the creation, maintenance, and development of the common property. The labor of the husband and wife in the family is considered as income-generating labor;
Protection of the legitimate interests of each party in production, business, and profession so that the parties have conditions to continue working and generating income;
The fault of each party in violating the rights and obligations of the spouses;
The common property of the husband and wife shall be divided in kind; if it cannot be divided in kind, it shall be divided according to its value. The party receiving property in kind with a value greater than the portion he or she is entitled to must pay the difference to the other party;
The separate property of the husband or wife belongs to that person, except in cases where the separate property has been merged into the common property in accordance with this Law;
In cases where there is a merger or mixing between separate property and common property, and the husband or wife requests division of property, he or she shall be reimbursed for the value of the contribution to that property, unless the spouses have another agreement;
Protection of the lawful rights and interests of the wife, minor children, adult children who have lost civil act capacity, or who are incapable of working and have no property to support themselves.

2. Settlement of common property of spouses in certain specific cases

In practice, when resolving divorce cases involving foreign elements, the settlement of disputes over the common property of spouses also gives rise to many complicated issues, most commonly related to real estate, to agreements on matrimonial property, or to common debts… leading to prolonged proceedings, causing difficulties for the spouses, especially when one party is a foreigner. Typical situations include the following:

Settlement of property rights and obligations of spouses towards third parties upon divorce, although the spouses divorce, their property rights and obligations towards third parties such as banks, creditors, or debtors remain effective after the divorce, unless the spouses and the third party have another agreement.
Division of property in cases where spouses live together with the family

In cases where the spouses live together with the family and divorce, if the property of the spouses within the family’s common property cannot be determined, then the husband or wife is entitled to a share in the family’s common property based on the contribution of the spouses to the creation, maintenance, and development of the common property as well as to the common life of the family. The division of a share in the common property shall be agreed upon between the spouses and the family; if no agreement can be reached, a request shall be made to the Court for resolution.

In cases where the spouses live together with the family and the property of the spouses within the family’s common property can be determined in portions, then upon divorce, the portion of property belonging to the spouses shall be separated from the common property for division in accordance with the law.

Division of real estate property

Currently, Vietnamese law does not recognize land use rights of foreigners; therefore, in cases where the spouses, with one being Vietnamese, have created common property during the marriage in the form of land use rights, the foreign spouse will only be entitled to the value of such land use rights.

Regarding home ownership rights, the Law on Housing has recognized the right to home ownership for foreigners married to Vietnamese citizens: “Foreign individuals may own houses in accordance with agreement via purchasing, lease-purchasing, gifting, inheriting houses for up to 50 years from the date on which the certificate is issued and request extension once for up to 50 years. Duration of ownership shall be specified in the certificate.”

In cases where the common property of the spouses is real estate located abroad, the matter shall be resolved at the place where the real estate is located and in accordance with the law of that country.

Division of spouses’ common property used for business

According to the provisions of the Law on Marriage and Family, the husband or wife who is conducting business activities related to the common property has the right to receive that property and must pay the other party the value of the portion of property to which they are entitled, unless otherwise provided by business law.

The matter of representation between husband and wife in business relations is also determined as follows: (i) In cases where the husband and wife conduct joint business, the husband or wife directly participating in the business relationship shall be the lawful representative of the other in that business relationship, unless otherwise agreed by the spouses before participating in the business relationship, or unless otherwise provided by this Law and other relevant laws; (ii) In cases where the husband and wife have agreed that one party contributes common property into business, that person has the right to independently conduct transactions related to such common property. This agreement must be made in writing.

To ensure humanity, Vietnamese law also provides regulations to protect the rights of the weaker party in ownership of common property of the Spouses: “A house which is separate property of a spouse and has been put to common use remains under his/her ownership upon divorce. In case the other partner has accommodation difficulties, unless otherwise agreed by the partners, he/she has the right to stay at the house for 6 months at most from the date of termination of the marriage relation.”

Time of writing: 27/09/2025

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