China clarifies debt obligations on spouses

The Supreme People's Court (SPC) on Wednesday released a judicial interpretation ruling on debt disputes between spouses.

Debts incurred by a spouse for the family's daily needs during a marriage shall be regarded as common debts and jointly paid off by the husband and the wife, according to the judicial explanation.

"The daily needs of a family include normal expenditure on food, clothing, daily necessities, children's education and support for the elderly," said Cheng Xinwen with the SPC.

Debts incurred by a spouse for use beyond the scope of the family's daily needs shall not be regarded as common debts and shall be only paid by the debtor spouse after the divorce, unless the creditor can prove the debt has been used for the family, common production or business or incurred with mutual consent.

"The interpretation clarifies debt obligations imposed on spouses, and will protect the non-debtor spouse from being heavily indebted while having no information about the debt," Cheng said.

The judicial explanation will go into effect from January 18.