DIVISION OF ASSETS AFTER DIVORCE UNDER VIETNAMESE LAW (UPDATED 2025)

I. Legal basis

• The Law on Marriage and Family of Vietnam 2014
• Circular No. 111/2013/TT-BTC

II. How are the principles for the division of property after divorce stipulated?

Pursuant to Article 59 of the 2014 Law on Marriage and Family, upon divorce, the common property of the spouses shall be divided on the principle that “cohabitation is joint creation, and divorce entails equitable distribution.” Specifically, the division of property must ensure that:

• Principle of equal division of common property: However, equal division does not mean that each party will receive exactly 50% of the property value, but rather that certain other factors must also be taken into consideration.
• Consideration of circumstances: This includes the economic conditions and income-generating capacity of each party after the divorce. For example, if one party is caring for a young child and lacks a stable income, the court may allocate a larger share to that party.
• Contribution effort: The party who has contributed more to the creation of the property or has played a greater role in preserving the common property will be entitled to a larger share.
• Fault in the marital relationship: The party at serious fault (e.g., adultery, domestic violence, etc.) may be allocated a smaller share of the property.
• Protection of women and children: If one party is a woman caring for young children or lacking the ability to be financially independent, the law prioritizes safeguarding her rights in the division of property.
• Priority to division in kind: If possible, the property shall be divided in kind so that the parties may continue to use the assets without being forced to sell and divide the proceeds. If division in kind is not feasible, the property shall be appraised and divided in monetary terms.

III. Cases of division of common property after divorce

1. When the spouses live with their family

This case usually involves property acquired during the period of living with parents or grandparents. If the property includes contributions from the parents, the court will determine the specific proportion contributed by each party. If the contributions cannot be clearly identified, the division will be based on the portion of the property actually created by the spouses during the marriage. Parents have the right to request the division of their share of the property if they can provide evidence proving their ownership rights.

Example: A couple lives with the husband’s parents and builds a house on the husband’s parents’ land. If the land is the separate property of the husband’s parents, then after divorce, the couple may only be entitled to a share of the value of the house construction, but not to any rights over the land.

2. Division of land use rights upon divorce

In cases where the spouses have joint land use rights, the court will consider:

• If the land is joint property, it shall be divided equally or according to the proportion of each party’s contribution. Priority to retain the land shall be given to the party who needs to stay, continue cultivation, or whose interests align with those of the minor children.
• If the land is separate property, but during the marriage one party has contributed effort to renovate or improve it, the other party may be entitled to compensation for their contribution.

Example: A husband and wife jointly purchase a piece of land registered in both their names. Upon divorce, if one party needs to stay to care for elderly parents and is given priority to retain the land, they must compensate the other party for the corresponding value of the land.

3. Division of common property in business activities

In cases where both spouses jointly conduct business or one party is the registered owner of a company, the division must ensure that business operations are not disrupted. If one party wishes to continue managing the enterprise, they may acquire the entire capital contribution and compensate the other party for the corresponding value.

In addition, if the contributed capital is joint property but registered under only one party’s name, it shall still be recognized as joint property for division purposes. The court may require an appraisal of the capital contribution or shares and divide them based on their value.

IV. Procedures for requesting the division of joint property after divorce

When an agreement cannot be reached, either party may file a lawsuit at the court to request the division of property. The procedure is as follows:

• Preparation of documents: This includes the petition, divorce judgment, documents proving ownership of the property, identification papers, and other relevant documents related to the creation of the joint property.
• Determining the competent court: The district-level People’s Court where the defendant resides or where the property is located (if the property is real estate).
• Payment of first-instance court fees: The court fee depends on the value of the disputed property.
• The court conducts conciliation and first-instance trial: If no agreement is reached, the court will issue a division ruling in accordance with the law.
• Duration of resolution: The maximum duration is 4 months for a regular case, with a possible extension of 2 months. If there is an appeal, the appellate trial period is 3 months, which may be extended by an additional month.

V. Can spouses request the division of property several years after divorce?

The answer is yes. The law does not require property to be divided at the time of divorce. A lawsuit for property division can be filed later, provided that the property has not been divided and there is no other agreement.

However, if too much time passes (over 10 years), gathering evidence may become difficult, and the court will need to carefully assess the status of property use, the extent of rights infringement, and the willingness of the parties to cooperate.

VI. Are children entitled to a share of the property when their parents divorce?

In principle, children are not entitled to a share of their parents’ property. However, in certain cases, children do have rights to:

• When the parents agree to gift or transfer property to the child;
• When the child is a co-owner of the property with the parents;
• When the child is the heir to the portion of property inherited from one deceased parent;

Additionally, if the child is a minor or lacks legal capacity, the court will consider protecting the child’s rights to ensure that the division of property does not seriously affect the child’s living conditions and education.

VII. If the husband does not agree to divide the property upon divorce, what should be done?

If the parties do not voluntarily divide the property, the other party may:

• File a petition with the court requesting the division of property;
• Provide evidence of the joint property and legal entitlements;
• If there is a judgment or decision on property division that the other party fails to comply with, request enforcement by the civil judgment enforcement authority.

In cases where property is hidden or transferred unlawfully, In cases where property is hidden or transferred unlawfully, the requesting party may petition the court to apply temporary emergency measures to blockade the property.

VIII. Do parties have to pay taxes on property division after divorce?

Pursuant to Circular 111/2013/TT-BTC and current guiding documents, the division of joint property of spouses upon divorce is not subject to personal income tax or registration fees, regardless of whether the division is made in kind or in cash.

However, if after the division one party transfers the property to a third party, tax obligations will arise at that time.

IX. Which assets are not subject to division upon divorce?

Assets that are not subject to division upon divorce include:

• Each spouse’s separate property acquired before the marriage;
• Property received individually as a gift or inheritance during the marriage;
• Property used for personal needs, such as personal belongings or sentimental assets;
• Property that has been agreed in writing by the parties as separate property;

If there is clear evidence (documents, contracts, witness statements, etc.), such assets will not be included in the joint property for division.

X. Which method of property division upon divorce is most advantageous?

Depending on the objectives and specific circumstances, each method of property division may offer different advantages:

• A party seeking housing stability may request to receive real estate, even if they must compensate for the difference in value.
• A party needing cash may request division based on the monetary value.
• Receiving income-generating property (for rent, cultivation, etc.) may be more advantageous in the long term.

The law does not prohibit the parties from agreeing on a division method different from the court’s judgment, provided that both parties voluntarily consent and the agreement is lawful.

XI. Is it mandatory to divide property in kind upon divorce?

It is not mandatory. Article 59 of the Law on Marriage and Family stipulates that division in kind is preferred, but if not feasible, division by value is allowed. In cases where real estate cannot be divided, the property may be appraised, sold, and the proceeds divided, or one party may receive the entire property and compensate the other party accordingly.

Read more related articles: 

• DIVORCE PROCEDURES IN 2025: WHAT DOCUMENTS TO PREPARE? WHERE TO SUBMIT THE APPLICATION?

• VIET NAM’S DIVORCE PROCEDURE STEPS

XII. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

Website: http://hankuklawfirm.com/en/  FB: https://www.facebook.com/hankuk.lawfirm  Tiktok: https://www.tiktok.com/@hankuklawfirm Youtube: https://www.youtube.com/@hankuklawfirm6375 Email:  info@hankuklawfirm.com   SĐT: 0942.339.063