[Direct answer]In the Beijing area, the key points are whether the borrowing was a joint intention of the couple, and whether the borrowed money was used for the couple's joint life or joint business. Article 1064 of the Civil Code of the People's Republic of China stipulates that debts incurred through joint expressions of intent, such as the joint signing by both spouses or the subsequent recognition by one party, as well as debts incurred by one party in the name of the family for daily living needs during the marriage, are considered joint debts of the couple. However, debts incurred by one party beyond the family's daily living needs, if the creditor can prove that they were used for the couple's joint life, joint production and operation, or based on a joint expression of intent, are also considered joint debts. Therefore, if the borrowed money for business exceeds the family's daily needs and the spouse is unaware of it and does not benefit from it, it is generally not considered a joint debt, and the burden of proof lies with the creditor. When the spouse is sued together, he or she should raise defenses and provide evidence based on the grounds of not having co-signed, not having benefited from it, and not having used it for joint living.

I. Problem Background and Typical Scenarios

It is very common for individual business owners and small and micro enterprise owners to borrow money in their own names for purchasing inventory, working capital, or expanding their businesses. After the debt matures, creditors often sue both spouses together and even apply for the seizure of family assets. Spouses often feel confused: The money never went through my hands, and I'm not the one running the business. Why should I repay the debt? Another scenario is when a couple jointly runs a company or a store. Although the loan is in one spouse's name, the profits are used for family purposes, making the determination even more complex. When handling such cases in Beijing, the court seeks a balance between protecting the creditor's legitimate interests and avoiding innocent spouses from being held accountable, with the focus on proving the purpose of the funds and the couple's joint intent to incur the debt.

II. Key points of contention

First, whether the operating loans exceed the family's daily living needs, and what the judgment criteria are. Second, how to determine the joint intention, and whether the spouse needs to sign or acknowledge it retrospectively. Third, how the burden of proof is allocated when the creditor claims that the loans are used for joint operations. Fourth, whether the spouse actually benefits from the operation, and how to prove it. Fifth, whether the couple's assets are commingled, and whether this affects the determination. Sixth, even if it does not constitute a joint debt, can the joint assets be subject to compulsory enforcement, and how can the share be protected.

III. Professional analysis by Henglue Lawyers

Based on Henglue Lawyer's practical experience in handling cross-cases of creditor-debtor and family disputes, the court usually reviews them at three levels. The first level is joint debt and joint signature: if the spouse signs the IOU or loan contract, or acknowledges it in writing or via WeChat after the fact, it is generally recognized as a joint debt. The second level is for daily family needs: if the amount is small and used for clothing, food, housing, transportation, or children's education and medical care, it can be directly recognized as a joint debt; if the amount is large and obviously used for business operations, exceeding daily needs, it cannot be directly recognized. The third level is joint living or joint operation: the creditor needs to prove that the loan was used for the couple's common living expenses or the common operation's income and expenditure system, such as the spouse participating in the operation and management, the operation's income being used for the family's common living expenses, and the loan being used to purchase common operational assets. In practice, if one spouse claims not to be liable, they should focus on proving that they did not participate in the operation's decision-making, that the operation's income was not used for the family's common living expenses, and submit family income and expenditure records, operation transaction accounts, etc. It should be noted that even if it does not constitute a joint debt, the execution stage may still involve joint property. The spouse should promptly raise an objection to the execution to protect their own share.

IV. Practical Suggestions and Legal Basis

Action list: First, check the loan contract and IOUs to confirm whether you have signed them or acknowledged them retroactively; Second, sort out the family's income and expenditure and the business accounts to prove that the loan was not used for joint living; Third, collect evidence showing that the business was independently decided by the other party and that you did not participate in it; Fourth, pay attention to whether the court will seize the joint property during the enforcement stage and raise objections in time; Fifth, negotiate with your spouse about the recovery arrangements for the handling of external debts. For matters involving debt determination and enforcement relief, you can refer to the relevant provisions of the Marriage and Family Code of the People's Republic of China.Creditor's rights and debts, and enforcementFor cases involving the joint handling of assets and debts during divorce, you can refer to the following for more information.Divorce litigation and family disputesLegal basis: Articles 1062, 1063, and 1064 of the Civil Code of the People's Republic of China (all of which came into effect on January 1, 2021), and the relevant provisions of the Interpretation (I) of the Supreme People's Court on the Application of the Marriage and Family Chapter of the Civil Code of the People's Republic of China (which came into effect on January 1, 2021). The specific application shall be subject to the currently effective laws and regulations and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, "not signing" does not mean absolute exemption from liability. The key issue is whether the other party benefits from the joint operation. Secondly, for unilateral debt incurred beyond the family's daily living needs, the burden of proof lies with the creditor, and the spouse does not need to prove their innocence. Thirdly, if the family's property is subject to enforcement, the spouse should promptly raise objections to distinguish their share of the property. Fourthly, the divorce agreement or judgment should explicitly address external debts to avoid secondary disputes. If you are currently facing similar issues, you can seek assistance throughCreditor's rights and debts, and enforcementThe service obtains a comprehensive solution, which involves the combination of business operations and contractsBusiness and contract disputes in enterprisesFor cases involving family property, you can refer to the relevant provisions in the Civil Code of the People's Republic of China.Divorce litigation and family disputesColumn.

VI. Frequently Asked Questions

Q1: My spouse borrowed money personally to run a business. Do I need to repay it?

Not necessarily. If the loan exceeds the family's daily living needs, the creditor needs to prove that the loan was used for the couple's common life, joint production and operation, or based on a joint intention, in order to be considered a joint debt. If the spouse was unaware of the loan, did not sign the agreement, did not benefit from it, and did not participate in the operation, they are generally not liable. However, they must submit corresponding evidence to support their defense.

Q2: The promissory note only has my spouse's signature on it. Am I liable for the debt?

It depends on the purpose and amount of the debt. If the amount is relatively small and used for daily family life, it may be considered a joint debt; if the amount is large and obviously used for business purposes, the creditor needs to provide further evidence of joint operation or joint benefit. The spouse may claim that they did not co-sign or ratify the debt and submit family income and expenditure records to refute the claim.

Q3: How to prove that the loan was not used for the family's joint living expenses?

You can submit evidence such as bank statements, accounting records, and chat logs to prove that you bear the family's daily expenses, that the other party's operating income does not enter the family account, and that the funds flow into the business investment. The evidence should form a chain to demonstrate the separation between the sources of family expenses and the destinations of the borrowed funds.

Q4: Will the couple's jointly owned property be subject to enforcement?

After the case is adjudicated, it enters the enforcement stage. If the debtor has marital joint property, it may be sealed up and disposed of. The spouse should promptly raise an objection to the enforcement and claim his or her own share. Even if it does not constitute a joint debt, it is necessary to protect the part of the property that belongs to him or her through the enforcement process to avoid substantial impact on his or her life.

Q5: How should these business debts be handled during a divorce?

The debts identified as joint debts shall be borne by both parties jointly, and the debts identified as personal debts shall be borne by the borrower. It is recommended to clarify the nature of the debt and the subject of liability in the divorce agreement or judgment, and to stipulate the internal recovery arrangement after the external repayment, so as to avoid disputes caused by the creditor's repeated claims after the divorce.

The above Q&A is mainly based on the judicial practice in the Beijing area. There may be differences in the adjudication opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, so as to avoid missing the statutory time limit. →Divorce litigation legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.