Savings book in one's name: Divide in half or keep separate?
Besides emotional rifts, the problem of dividing assets associated with old age such as savings books or pensions has become the focus of disputes in court.
Many people mistakenly believe that savings books in their own names are naturally private property. Normally, when there is no dispute, the person named on the savings book can arbitrarily decide to dispose of it by withdrawing money, sending it back, and taking interest from savings deposits...
However, when a dispute occurs, considering whether the money in the savings book is common property of husband and wife, or private property, will depend on proving the origin of that money.
Money in savings books is only recognized as private property if the owner proves that the money was obtained before marriage, given separately, inherited separately, or agreed by husband and wife to be private property during the marriage period.
If it cannot be proven that the money in the savings book is private property, then based on Article 33 of the Law on Marriage and Family 2014, property created by husband and wife, income from labor, production and business activities, profits, and interest arising from private property and other legal income during the marriage period are all common property.
According to Article 59 of the Law on Marriage and Family 2014, in principle, common property will be divided in half. The court will consider factors such as family circumstances, contributions of each party (housewives are still considered income earners), protecting legitimate interests to continue to maintain life and the fault of each party... to divide the property of husband and wife when divorced.
Is pension, separate income or common property divided?
Current law does not define what a pension is, but through current regulations, it can be understood that a pension is a fixed amount of money paid monthly by the social insurance agency to employees when they have reached retirement age and meet sufficient conditions on social insurance contribution time.
Thus, pensions are personal property of individuals, except in cases where husband and wife agree that it is common property. Therefore, if there is no agreement that it is common property of husband and wife, the court will not divide this pension.
Divorce at the age of U70 is not only a breakdown in feelings but also directly affects financial safety in old age. Understanding the law will help the parties protect their legitimate rights, and at the same time proactively agree to have a civilized breakup, minimizing legal risks.
