Failure to repay debts leads to being listed as a dishonest person; marital property is hard to protect

[2] Compiled from: Lanshan District People's Court

Case Review

[3] Cheng Mou had long purchased板材 from a certain板材 factory in Lanshan District (hereinafter referred to as the板材 factory) but failed to pay for the goods on time. After multiple unsuccessful attempts to demand payment, the板材 factory sued Cheng Mou in the Lanshan District People's Court. Following the first and second instance trials, effective legal documents determined that Cheng Mou must repay the principal of the owed货款 and corresponding interest. After the performance period expired, Cheng Mou still did not fulfill his legal obligations. In 2023, the板材 factory applied to the Lanshan District People's Court for compulsory enforcement.

[4] After accepting the enforcement case, the Lanshan District People's Court used the online investigation and control system and found that Cheng Mou had no executable property under his name. Since Cheng Mou was not a local resident, the enforcement judge immediately initiated a commissioned investigation, but still found no executable property under the name of the person subject to enforcement at his registered residence or workplace, causing the case to reach a stalemate. "The person subject to enforcement has been in business for a long time. If he has many debts, the likelihood of him concealing or transferring property is relatively high," the enforcement judge changed the enforcement plan, investigating Cheng Mou's marital status and the property under his spouse's name, ultimately discovering that Cheng Mou's wife, Wang Mou, owned a property.

[5] Upon verification, the property was purchased during the marriage of Cheng Mou and Wang Mou. Based on relevant legal provisions, the enforcement judge determined that the property was marital joint property and legally seized Cheng Mou's share in the property. Currently, the case is proceeding with the auction and sale of the involved property.

　The Civil Code of the People's Republic of China

Article 1062

The following property acquired by a husband and wife during the period of their marriage shall be community property, jointly owned by the husband and wife:

(1) wages, bonuses, and remuneration for services;

(2) income from production, business operations, and investments;

(3) income from intellectual property rights;

(4) Property inherited or received as a gift, except as provided in Item 3 of Article 1063 of this Law;

(5) Other property that shall be jointly owned. Both spouses have equal rights to manage the jointly owned property.

Civil Procedure Law of the People's Republic of China

Article 238

During the execution process, if a person not involved in the case raises a written objection to the subject matter of execution, the people's court shall review it within fifteen days from the date of receiving the written objection. If the reasons are valid, it shall rule to suspend the execution of that subject matter; if the reasons are invalid, it shall rule to reject the objection. If the person not involved in the case or the parties are dissatisfied with the ruling and believe that the original judgment or ruling is erroneous, they shall proceed in accordance with the trial supervision procedure; if it is unrelated to the original judgment or ruling, they may file a lawsuit with the people's court within fifteen days from the date of service of the ruling.

[4] Author's Opinion

In reality, it is very common for one party to owe money and not repay, and even if the lawsuit is won, there may be no property to execute. At this point, many people cannot help but ask: Can the other party's marital joint property be executed?

Property formed during the marriage is generally considered joint property unless otherwise agreed, with both parties holding shares. In cases where one spouse is the person subject to execution, for general movable property solely possessed by the spouse of the person subject to execution, immovable property, specific movable property, and other property rights registered in the name of the spouse of the person subject to execution, if investigation shows that the property was acquired by the person subject to execution and their spouse during the marriage, it shall be considered marital joint property, and the share of the person subject to execution in that property can be treated as executable property. If the applicant for execution submits a written application to seal up, detain, or freeze such property, the people's court may do so. If the spouse of the person subject to execution raises an objection and requests exclusion from execution, it shall be reviewed in accordance with Article 238 of the Civil Procedure Law. Chinese law provides equal and solid legal protection for both creditors of monetary debts and co-owners of liability property, ensuring that their legitimate rights and interests are not infringed upon, while also conveying a clear message to the public: Honesty and law-abiding are obligations of every citizen. No one should attempt to evade legal liability through means such as circumventing execution, as this not only harms the rights of others but also leads to the loss of one's own credibility.