Dividing real estate assets located abroad: Which court has jurisdiction: a Vietnamese court or a foreign court?

In the context of global integration, it is increasingly common for married couples to own joint real estate (houses and apartments) abroad. However, when deciding to divorce, the issue of dividing real estate abroad becomes a complex legal hurdle. The biggest question often arises: Which court—Vietnamese or foreign—has jurisdiction to handle this matter? Through this article, Apolo Lawyers will help you understand the regulations regarding the division of real estate abroad.

1. The Principle of Separate Jurisdiction over Real Estate

According to international law and the 2015 Vietnamese Code of Civil Procedure, the jurisdiction to resolve disputes related to real estate adheres to the principle of "separate jurisdiction."

Specifically, Clause 1, Article 470 of the 2015 Code of Civil Procedure states that Vietnamese courts have separate jurisdiction over the following:

"Civil cases relating to rights to real estate located in the territory of Vietnam."

In accordance with the principle of reciprocity and international practice, when real estate is located abroad, the jurisdiction to resolve rights related to that real estate (such as ownership rights, usage rights, and division in divorce) usually belongs to the court where the real estate is located (lex rei sitae).

2. Can Vietnamese courts divide real estate located abroad?

In practice, when handling divorce cases with foreign elements, Vietnamese courts can resolve issues regarding the following:

• Marital relations (granting divorce).
• Child custody and alimony.
• Division of movable or immovable property in Vietnam.

Regarding real estate located abroad: Vietnamese courts will usually refuse to handle the case or advise the parties to file a separate lawsuit in the country where the property is located. The reason is that a Vietnamese court judgment on real estate abroad would be very difficult (or impossible) to recognize and enforce in that country due to a violation of the principle of separate jurisdiction.

Dividing real estate assets located abroad: Which court has jurisdiction: a Vietnamese court or a foreign court?

3. Common Legal Scenarios

Scenario 1: Mutual Agreement

If the couple mutually agree on the division of real estate abroad, the Vietnamese court may record this voluntary agreement in the Decision recognizing the amicable divorce. However, to carry out the transfer of ownership or assignment abroad, the parties must still follow the procedures according to the laws of that country.

Scenario 2: Intense Dispute

If they cannot reach an agreement, the parties need to proceed with the divorce procedure in Vietnam first, then take the divorce decree (legalized by consular authorities) to the country where the real estate is located to request the court of that country to resolve the property division according to their laws.

4. Difficulties in Self-Resolving Disputes Overseas Property

The division of cross-border property faces many challenges:

Language and legal barriers: Each country (USA, Australia, Singapore, etc.) has different regulations regarding joint/separate property. Property valuation costs: Valuing real estate abroad for division purposes is very expensive and complex.
Consular legalization procedures: Documents and evidence from abroad must be translated, notarized, and legalized by the consulate to have legal validity in Vietnam.

Dividing real estate assets located abroad: Which court has jurisdiction: a Vietnamese court or a foreign court?