Marital debt (夫妻共同债务) is debt for which both spouses are jointly responsible. Under the PRC Civil Code, it generally includes debts that both spouses signed for or that one spouse later approved, and debts that one spouse incurred in their own name for the family's ordinary daily needs. A debt incurred by one spouse alone that exceeds daily family needs is generally not a joint debt, unless the creditor can prove it was used for the couple's joint life or joint business, or that both spouses intended to take it on.
Why it matters
Debt can be as important as assets in a divorce, especially where one spouse runs a business or has borrowed from friends, online lenders or relatives. The divorce agreement or judgment decides how debts are shared between the spouses, but it does not bind creditors: a creditor of a joint debt can still pursue either spouse, and the paying spouse must then seek reimbursement from the other. A spouse who fabricates debts to reduce the other's share can receive a smaller share or none. Interpretation II (2025) also addresses divorces arranged to evade debts.
How it works in practice
After a Chinese husband and his Malaysian wife separated in Shenzhen, a man sued them both for repayment of a large loan made to the husband. The wife had not signed, and the money had gone into the husband's gambling. The court held that the loan exceeded daily family needs and the lender could not show it benefited the family, so the wife was not liable.
Common mistakes
- Signing as a co-borrower or guarantor without understanding the consequences
- Believing that a divorce agreement assigning a debt to one spouse protects you from the creditor
- Ignoring online loans and credit cards in the other spouse's name when negotiating
- Failing to challenge suspicious "debts" to relatives that appear only at divorce
- Not keeping records of how borrowed money was actually spent