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According to the judicial interpretation of China Supreme Court concerning Marriage Law of the People's Republic of China (implemented on Dec 25th 2003), creditors asking for the payment of the debt may ask both parties of the couple to pay back the money, even if the debt is in only one party’s name. In short, as long as the couple’s marriage exists, each party’s debt is concluded as joint debt in priority.
Relevant case
Mr. Zhao and Ms. Lin registered for divorce at the civil affairs bureau of XYZ District in Shanghai. Both parties come to agreements in the following:
1) The male party Zhao and the female party Lin get divorced by mutual consent.
2) Without issue.
3) No common property after marriage.
4) Each should bear liabilities under each name during the conjugal relation respectively.
After the completion of divorce procedures, Qiao, a friend of Zhao’s, asked for repayment for the debt of 200,000 Yuan, but Zhao didn’t fulfill his commitment by various excuses and even disappeared afterwards. So, Qiao had no alternative but to turn to Lin. But Lin refused to refund by virtue of articles in the divorce agreement. Although the liabilities were formed during her marriage with Zhao, they had come to agreements that each party should bear his or her own liabilities during the conjugal relation respectively.
Qiao took a legal action concerning debts dispute to the people’s court in Shanghai, both Zhao and Lin as the accused, requesting the two accused to refund debts of 200,000 Yuan.
Because Zhao disappeared, the court summons was served on Lin. Lin argued that the debts of 200,000 Yuan Zhao borrowed from Qiao in 2004 had no business with her. In the process of divorce, they had reached agreements that each party should bear his or her liabilities during the conjugal relation respectively. So, she had no obligation to repay his debts.
The people’s court of X District in Shanghai made the judgment that the debts of 200,000 Yuan, Zhao borrowed from Qiao for the purpose of operating business during the marriage with Lin should be considered as common liabilities. So, Qiao’s appeal for repayment of debts should be backed up in line with laws. Zhao and Lin, as the accused, should refund 200,000 Yuan to Qiao and Lin can defend her rights according to the divorce agreement with Zhao after refunding Zhao’s debts. |
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