Division of Assets in Thailand
Divorce has a lot of consequences and processes that needs to be done, one of those is the Division of Assets in Divorce. Inevitably, Divorce can happen to a relationship that is not working, whether it is because of third-party issues or just between the spouses, Divorce can occur to couples who wants to end their bond with each other. When a relationship breaks down, in addition to dealing with the emotional consequences there will also inevitably be financial matters to take care of.
Division of Assets may involve not just the spouses but the sake of the children as well. this part of the divorce process must be taken care of properly and handled thoroughly. Our law firm prioritizes the well-being of our clients, we make sure that they get the best service and the right partition that they deserve.
Table of Contents
1. The Court’s Stand in Divorce.1. The Court’s Stand in Divorce
When dividing assets in divorce, the Court’s primary objective is to make sure that all parties are treated fairly. Under the Civil and Commercial Code of Thailand Section 1525, Section 1532, Section 1533 and Section 1534 which states that:
Section 1525: “The compensation under Section 1523 and Section 1524 shall be decided by the Court according to the circumstances, and the Court may give an order for a single payment thereof or payment in installments as may be deemed suitable by the Court.
In case where the person who has to make the Compensation is a spouse of the other party, the share of the property received by the former from the liquidation of the Sin Somros on account of divorce shall also be taken into consideration.”
Section 1532 “After divorce, the property of the husband and wife shall be subject to liquidation.
But as between the spouses,
(a) in case of divorce by mutual consent, the liquidation shall apply to the property of the husband and wife as it was on the date of registration of divorce;
(b) in case of divorce by judgment, the liquidation shall apply to the property of the husband and wife as it was on the day when the action for divorce was entered in Court.”
Section 1533 “Upon divorce, the Sin Somros shall be divided equally between man and woman.”
Section 1534 “Where either spouse has made disposal of the Sin Somros for his or her exclusive benefit, or has made disposal thereof with an intention to cause injury to the other, or has made disposal thereof without the consent of the other in the case where such disposal is required by law to have consent of the other, or has willfully destroyed it, it shall, for the purpose of division of the Sin Somros under Section 1533, be regarded as if such property had still remained. If the share of the Sin Somros that the other will receive is not complete to what he or she should have received, the party at fault is required to make up for the arrears from his or her share of the Sin Somros or his or her Sin Suan Tua.”
2. Division of Equitable Assets
the court has the power to order the division of matrimonial assets in a “just and equitable manner”. Some of the factors the court will consider in arriving at a just and equitable division of assets include:
- The extent of contributions made by each party in monetary terms
- The needs of the children of the marriage
- The extent of contributions made by each party to the welfare of the family (indirect contribution)
- Any agreement between the parties with regards to the division of the matrimonial assets upon divorce.
3. Matrimonial Assets
Matrimonial assets include all property acquired during the marriage. Generally, property acquired before the marriage are not matrimonial assets – unless they are ordinarily used by the family or have been substantially improved by both partners, or the party who was not the original owner of the property.
4. Examples of Assets that may be put into Division:
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- Businesses
- Insurance
- Shares
- Car
- Savings
- Bank balances and jewelry.
5. Here’s what you need to know:
Under the Civil and Commercial Code of Thailand, only common property must be divided in equal shares upon termination of the marriage, non-marital (personal) assets do not have to be divided. When dividing assets between husband and wife in a divorce (or death) the first question is if an asset is a personal or common property. When the above procedure has been followed the foreigner cannot simply ask for division of the house as part of the common property as the house is registered as a personal property of the Thai spouse and therefore must not be divided (the foreign spouse has signed away his rights in the land office certify letter). Only if the official land acquisition procedure for a Thai national married to a foreigner not has been followed the land or land and house is considered a common property between husband and wife and must be divided upon termination of the marriage (unless the Thai spouse can proof the home is purchased with her personal property).
In practice this situation can only be achieved if the Thai spouse has given false information to the land office officials when registering ownership over the property (not declaring the marriage with the foreigner).
In such cases the Land Departments enforcement and punishment measures in land holding as an agent for a foreigner could be applied and used against the foreigner and his Thai spouse, and if found guilty they are liable for fines and even imprisonment.
The marital home in Thailand, registered as a personal asset of the Thai spouse, will not be divided equally as it is not automatically considered a common property between husband and wife but a non-marital asset of the Thai spouse.
Division of property does not necessarily mean a physical division. Rather, the court may award each spouse a percentage of the total value of the property. Each spouse will get personal property, assets, and debts whose worth adds up to his or her percentage. It is illegal for either spouse to hide assets in order to shield them from property division.
Siam Attorney is here to help you
At Siam Attorney, we want you to get the best resolution for every problem that you have and we want to make sure that in your divorce issues, you get the best outcome as well. Our team of professional lawyers is here to give you the best advice as well as to guide you on your divorce journey.
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