[Direct answer]In the Beijing area, simply saying "I don't know" is not enough. The court looks at the evidence. The core issue is to provide evidence in accordance with Article 1064 of the Civil Code of the People's Republic of China (adopted on May 28, 2020 and implemented on January 1, 2021): that they did not sign the contract jointly, did not acknowledge it retrospectively, and that the debt was not used for the family's daily living needs or joint production and operation. For large-scale loans exceeding daily living needs, the burden of proof lies with the creditor. If the creditor cannot prove that the funds were used for joint living, joint production and operation, or based on a joint expression of intent, the debt will not be recognized as a marital joint debt. Therefore, it is important to collect evidence such as whether the borrower's signature appears on the IOU, the flow and purpose of the funds, the family's income and consumption level, and materials related to the other party's business and personal financial transactions.

1. Problem background and typical scenarios

There are usually three ways to trigger such disputes: First, the creditor directly sues both spouses and demands joint repayment; Second, the court seizes the real estate and vehicles registered under the name of the debtor during the enforcement stage, and the spouse only then discovers that the joint property has been implicated; Third, in divorce litigation or post-divorce property disputes, one party claims that a certain sum of money belongs to a joint debt and demands that the other party share it. Common situations are that one party operates or borrows money outside the home, and the other party does not dominate the family finances. After the incident, they not only have to prove their innocence but also face the practical pressure of having their property disposed of. When handling similar cases in the Beijing area, we generally recommend first clarifying the nature of the debt and then deciding whether to defend against the lawsuit or claim a share of the property.

II. Key points of contention

First, the criteria for identifying joint debts. According to Article 1064 of the Civil Code, debts signed by both spouses or debts subsequently acknowledged by one spouse, as well as debts incurred by one spouse in the name of the family for daily living needs during the marriage, are considered joint debts. Debts exceeding the family's daily living needs, unless the creditor can prove that they were used for common living, joint production and operation, or based on a common intention, shall be borne by the borrower personally. Second, the allocation of the burden of proof. The burden of proof for large-scale borrowing lies with the creditor, which is the most important defense point for the uninformed party. Third, the nature of the debt and the ownership of the property should be dealt with separately. Even if it is identified as a personal debt, the marital jointly owned property registered under the name of the debtor may still be subject to overall seizure and share-based liquidation. The spouse may claim their share and corresponding rights. Fourth, the form of evidence for "unawareness". It includes objective facts such as the absence of the borrower's signature on promissory notes and contracts, the funds not entering the family account, and the obvious mismatch between the family's consumption level and the amount of the loan. Fifth, the scope of effectiveness of the divorce agreement. The agreement on debt sharing between spouses is only effective internally and cannot be used to oppose bona fide creditors.

III. Professional analysis by Henglue Lawyers

A case handled by Henglue Law Firm can illustrate the approach to dealing with "debt-related property". Ms. Gao and Mr. Tan got married in 1991 and divorced by agreement on April 17, 2003. The divorce agreement stipulated that the couple had no joint housing. On July 30, 2020, due to Mr. Tan's failure to fulfill his debts to others, a house located at No. 608 in Beijing under his name was forcibly sealed by the court and later auctioned for 8.54 million yuan. At this time, Ms. Gao learned that Mr. Tan had purchased the house as early as 2001 and concealed it from her during the divorce without dividing it. Ms. Gao believed that the property belonged to the couple's joint property and should be divided, so she entrusted Attorney Li Yonghui of Beijing Henglue Law Firm to handle the case.

Attorney Li Yonghui's focus lies in two aspects: Firstly, proving that House No. 608 was purchased during the marriage, that Tan * paid the down payment and repaid part of the loan (a total of 147573.11 yuan in principal and interest repaid by the date of divorce in April 2003), and that the house was not dealt with during the divorce. According to the law, it belongs to the couple's joint property that was not involved in the divorce and should be divided according to law. Secondly, in the case where the house has been auctioned due to debt-related issues, the attorney converts the property rights belonging to the woman into a claim for the auction price. The court adopted the attorney's opinion, determined that the house belongs to the couple's joint property, calculated the share based on the proportion of contributions during the marriage, and ruled that Tan * should pay Ms. Gao the auction price of the house, which amounts to 945649.38 yuan, and explicitly stated that if the payment is overdue, the interest on the overdue payment will be doubled. This case was handled by Beijing Henglu Law Firm.Li YonghuiThe lawyer (practice license number: 11101199611955812, subject to the document issued by the judicial administrative organ) acts as the agent. The lesson of this case is that, regardless of whether you are ultimately identified as a joint debtor, you should promptly claim your share of the joint property to avoid having your rights and interests swallowed up by the debtor due to passive waiting.

IV. Practical suggestions and legal basis

According to Article 1064 of the Civil Code of the People's Republic of China (Identification and Burden of Proof of Marital Joint Debts), Article 1066 (Circumstances in which a party may request the division of marital joint property during the continuance of the marriage relationship), and Article 1092 (A party who conceals, transfers, sells, damages, or squanders marital joint property may be awarded a smaller share or no share at all), these three articles came into effect on January 1, 2021; the Interpretation 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 (No. 22 of 2020, effective January 1, 2021) provided a detailed explanation of the identification of marital joint debts. Suggestions: First, when receiving the lawsuit materials, it is necessary to respond to the lawsuit on time, submit a defense statement, and raise defenses regarding the nature of the debt; Second, apply to the court to retrieve the account statements of the borrower to determine the use and purpose of the loan; Third, organize materials comparing the family's income with its daily consumption level to prove that the loan clearly exceeds the family's daily living needs; Fourth, if the property has been sealed or auctioned, promptly claim a share as a co-owner or raise objections to the enforcement; Fifth, make clear agreements on the nature and sharing of the debt or have the court confirm it when divorcing. For remedies in the enforcement stage, please refer to the relevant provisions.\nObjection to enforcement and additional claimsThe processing path of the request.

5. Henglu Law Firm's Advice

When being implicated in debt, the two most taboo things are: first, not appearing in court or providing evidence, which is tantamount to giving up the right to defend oneself; second, only emphasizing that one was unaware of the debt without providing any objective evidence. Three reminders: First, the determination of joint debt depends on the purpose and intent of the transaction, not on who "manages the money" in the family. However, the party who manages the money often holds key financial records, so it's important to secure this evidence as soon as possible. Second, even if the debt is identified as personal debt, the debtor's share of the marital joint property may still be liquidated. The other party should promptly claim the liquidated value rather than passively waiting for the distribution. Third, if hidden assets or debts are discovered after divorce, the party can request a second division of property in accordance with Article 1092 of the Civil Code. For related experience, please refer to the following article:Divorce litigation and family disputesA column. For matters involving the company's borrowing, equity, and investment verification, you can do it throughBusiness and contract disputes in enterprisesTo understand the clues for accountability, you can also visitBeijing Henglu Law FirmPlease consult the official website for further information.

VI. Frequently Asked Questions

Q1: Can claiming that one was unaware of the situation exempt them from the joint repayment obligation?

It cannot be denied solely by words. According to Article 1064 of the Civil Code of the People's Republic of China (effective January 1, 2021), debts signed jointly and subsequently ratified, as well as debts incurred for the daily needs of the family, are considered joint debts. Debts exceeding the daily needs of the family must be proven by the creditor to be used for common living, joint production and operation, or based on a common intention. If the creditor fails to provide evidence, the borrower shall bear the liability personally. In this case, the defense of "unawareness" and evidence of the funds' intended use can form an effective defense.

Q2: What evidence do I need to prepare?

First, the debt documents, such as IOUs, contracts, and transfer receipts, should be checked to see if the borrower's signature or subsequent acknowledgment is present. Second, the fund flow should be analyzed, comparing the transaction records of the borrower's account with the ultimate use of the funds. Third, household income and expenditure materials, such as salary deposits, daily expenses, and the family's asset status, should be reviewed to demonstrate that the loan exceeds the borrower's daily living needs. Fourth, counter-evidence, such as proof that the borrower did not participate in the business operation or benefit from the loan, should be collected. If necessary, court-ordered investigations and evidence collection can be requested to trace the funds' specific destinations. If the debt involves corporate operations, corporate registry files can also be retrieved to verify the investment and account transactions.

Q3: Approximately how much does it cost to defend against a lawsuit and to be represented by an attorney?

In cases where the defendant is defending himself against the lawsuit, the acceptance fee is generally prepaid by the plaintiff and ultimately shared according to the proportion of the losing party. In property cases, the acceptance fee is paid in stages based on the amount in dispute in accordance with the "Measures for the Payment of Litigation Fees" (State Council Decree No. 481, implemented on April 1, 2007). For applying for property preservation, an additional preservation fee is required and a guarantee must be provided. Attorney's fees are subject to the provisions of the entrustment contract and are usually charged based on the amount of the claim or the stages of the case. It is recommended to conduct an assessment of the nature of the debt before defending the lawsuit and confirm whether the fees include the travel expenses for investigation and evidence collection and for attending court hearings in other cities.

Q4: How long does the entire process take?

The time limit for the first-instance ordinary procedure is generally six months, and for the simplified procedure, it is three months. Cases involving appraisal, announcement of service or objection to jurisdiction may take longer; after entering the execution stage, it will take several months depending on the progress of asset disposal. If the creditor appeals against the first-instance judgment, the second-instance procedure usually takes about three months. If the creditor sues for joint debts in a separate case, the time will be further extended. Therefore, it is usually more time-saving to respond to the lawsuit early, provide evidence early, and apply for investigation and evidence collection early, which can also avoid the assets being disposed of in advance.

Q5: What should I do first?

First, verify the amount of the claimed debt, the identity of the lender, and the purpose of the loan. Then, apply to retrieve the account statements of the borrower to determine the whereabouts of the funds, and submit a defense statement and evidence on schedule. If the co-owned real estate under your name has been sealed or auctioned, you should claim your share as a co-owner as soon as possible. Cases vary greatly, so it is recommended to consult a professional lawyer with materials such as promissory notes, account statements, and family income and expenditure to determine defense and protection strategies. If multiple creditors are competing for the same property, you should also pay attention to the sealing order and distribution plan as soon as possible.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretations in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

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

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available 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. In case of disputes, please consult a practicing lawyer in time.