- Hong Kong's matrimonial law does not say whether you must answer for your spouse's debts after divorce, but the court takes debts into account when dividing property.
- If you both signed the relevant agreements, your spouse's debt may lower your credit score.
- To deal with a spouse's debt, first gather and sort out the financial records, then get professional advice and choose a suitable way to handle the debt.
- Once a debt is treated as owed jointly by both spouses, the Chinese authorities may put the people involved on a blacklist, which restricts the debtor and their spouse in China.
When one spouse runs up large debts, it can damage the marriage and may even lead to filing for divorce.
This article looks at how divorce over a spouse's debt comes about and how to handle it.
How a spouse's debt affects divorce in Hong Kong
In Hong Kong, matrimonial law does not say whether you must answer for your spouse's debts after divorce.
However, when dividing property the court looks at both spouses' financial positions, including their debts, so debt can make a difference.
Pay particular attention to these situations:
- If you both signed a debt agreement or took on certain debts together, you may have to share them.
- If your spouse signed a debt agreement during the marriage for household expenses or other needs, the court may take those debts into account on divorce and decide accordingly when dividing property.
- If you own assets with your spouse, such as a flat, and those assets secure certain debts, you may be responsible for those debts.
If you have questions, we suggest you consult a solicitor.
If one spouse habitually borrows and falls into debt, so that creditors keep coming to the door, it destroys the peace of married life and seriously affects the family's livelihood.
When the family is repeatedly hit by court enforcement orders, or creditors keep calling at the home, it becomes harder and harder to hold the marriage together.
In that situation, going to court for a divorce may become necessary to end the marriage.
The family bears emotional strain as well as a heavy financial burden, and a spouse's debt gradually wears away the trust between husband and wife.
More divorce tips and tips on the divorce procedure:
- Decree nisi and decree absolute in Hong Kong
- Spot the common mistakes in the divorce process, and do not let emotion take over
- How do I apply for a divorce?
- Divorce mediation in Hong Kong: the process and its benefits
- Domestic violence in Hong Kong: definition, effects and where to get help
Will your spouse's debt affect how your property is divided?
Talk to us to check your financial position and debts.
How a spouse's debt affects your credit record and divorce agreement
A spouse's debt can also hurt your credit record.
If your spouse owes money and you both signed the related agreements, you may be affected too.
Your credit score may fall, which in turn can limit your ability to borrow.
How a spouse's debt affects the divorce agreement
A divorce agreement is an important way to settle money matters. In it, the couple can agree how to divide property, how much to pay for the children and similar questions.
But if one spouse is in debt, the agreement may be affected.
Please note
- If the spouse in debt cannot pay, the agreement may need to be renegotiated to decide how those debts are handled.
More articles on dividing property after divorce, and on the time before and after divorce:
- How to secure the best maintenance after divorce
- Housing arrangements for public rental flats after divorce
- Advice on preparing before a divorce
- What women should think about and prepare before divorcing
- Rebuilding your life after divorce: how to look after yourself and start again
- How divorce affects children in Hong Kong, and ways to support them
- Helping children adjust to a new family after divorce, so that children in a remarried, blended family grow up well
How to deal with a spouse's debt
When you find out your spouse is in debt, first gather and sort out the financial records, then get professional advice and choose a suitable way to handle the debt:
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Gather and sort out financial records
This helps you understand both spouses' financial positions, including debts and assets, and work out what you are responsible for.
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Get professional advice and help
While gathering the records, you may need to consult a financial adviser or a solicitor for advice on how to deal with your spouse's debt.
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Choose a suitable way to handle the debt
This may include negotiating with creditors to restructure the debt, or applying for bankruptcy.
Whichever route you take, think carefully about your financial position, the consequences and the possible effects.
Not sure how to deal with your spouse's debt?
Talk to us to check your financial position and obligations.
Points to note when divorcing over a spouse's debt
When dealing with a spouse's debt, pay attention to time and amount limits, the details of how property is divided in the divorce agreement, and child maintenance.
Time and amount limits on a spouse's debt
Generally, a debt that arose during the marriage is a joint debt, and both spouses share it.
Please note
- When dealing with a spouse's debt, you need to know the relevant legal rules to work out what you are responsible for.
Property division details in the divorce agreement
When one spouse is in debt, the property division in the agreement also needs to be adjusted.
For example, if one spouse takes on most of the debt, that spouse may need to receive more of the assets.
Before you sign a divorce agreement, think carefully about the details of the property division, so that the agreement properly reflects both spouses' rights and responsibilities.
A spouse's debt and child maintenance
If one spouse is in debt, their ability to pay child maintenance may be affected.
So the agreement needs careful thought on how child maintenance is paid and shared, to make sure the children's interests are fully protected.
- Why are divorce lawyers expensive?
- Why hire a solicitor for your divorce: the benefits and why it matters
- Becoming a solicitor in Hong Kong: entry requirements, income and the work
Cross-border divorce and Mainland debt
Marriages between Hong Kong and Mainland residents are becoming more common. The Supreme People's Court of China recently issued new rules stating that spouses are jointly responsible for family debts.
This means that even if one spouse is from Hong Kong or elsewhere outside the Mainland, debt that the other spouse takes on in the Mainland can affect them in the Mainland, and they may even be detained.
If one spouse borrows through a Mainland bank loan or remittance, then in a dispute over the debt the Mainland courts have the power to hear the case and recover the amount owed.
Even if your spouse lives in Hong Kong, they cannot fully avoid responsibility for debt incurred in the Mainland.
At present the legal systems of the Mainland and Hong Kong are not unified, and there is no judicial arrangement for restricting or selling a Hong Kong resident's property to repay debts.
However, once a debt is treated as owed jointly by both spouses, the Chinese authorities may put the people involved on a blacklist, which restricts the debtor and their spouse in China.
Please note
- The restrictions include a ban on buying high-speed train tickets, flying and similar spending.
- In serious cases the authorities may even detain the people involved.
If the loan was paid in cash rather than through a Mainland bank transfer, and there is no clear evidence that the debt was incurred in the Mainland, the Mainland courts will find it hard to accept the case.
Under the old Mainland rules, a family debt of a few thousand yuan or less was shared by both spouses.
| Old rules | After the new rules | |
|---|---|---|
| Large debts (for example, tens of thousands to several hundred thousand RMB) | The spouse who did not borrow had to prove they knew nothing about the debt | The burden of proof will fall on the debtor |
Under the old Mainland rules, in practice it was usually hard for the two spouses to prove they had nothing to do with each other's debt.
Under the new rules, the debtor must prove that both spouses knew about and accepted the debt and that it was used for family life. Otherwise the debtor alone bears the responsibility.
Please note
- The new rules aim to make both spouses responsible and ensure they share family expenses. In some cross-border marriages, however, especially where one spouse has lived in Hong Kong for a long time, they may in practice produce unfair results.
- Before getting engaged, think carefully about your personal finances and your legal responsibilities in different places, to avoid unnecessary trouble later.
This article was written independently by a third party and is not sponsored. The views in it are purely personal and do not represent any position.
It is for information only and is not a substitute for professional legal advice. Do not treat it as advice on any particular case.
More articles on improving your marriage:
- Tips for couples to communicate when you do not want to divorce or break up
- How couples can keep their marriage strong and prevent divorce
- The best ways to nurture a marriage in Hong Kong
- Does marriage counselling in Hong Kong help?
- Benefits of family mediation for Hong Kong families
- Marriage counselling organisations in Hong Kong: an introduction, marriage counselling hotlines and fees
Does your cross-border marriage involve Mainland debt?
Ask us about your financial position and responsibilities in different places.
