Summary of Key Points
The stock market in a neighboring country experienced an "epic bull run" in 2026, followed by a 40% plunge, resulting in a rollercoaster effect. Leveraging financial instruments amplified the risks, leading to more than 300,000 accounts being liquidated and affecting countless families. This article serves as a warning and, in conjunction with domestic legal regulations, provides a detailed analysis of the issues surrounding the assumption of losses and distribution of profits from stock investments between spouses. The main takeaway is that stock market risks not only test investment skills but also require clear agreements and understanding regarding the ownership of assets.
Warning from the Neighboring Country's Stock Market Plunge: Leverage Is a Double-Edged Sword
At the beginning of the year, driven by the popularity of AI storage chips, the stock market in that country rose by over 100% within half a year. Many investors used leverage (borrowing money to trade stocks) to try to capitalize on the gains. However, after a 40% drop in June, 320,000 to 360,000 accounts were forced to liquidate their positions, leaving them with no funds to repay the borrowed money, and brokers sold the stocks to cover the debts. More than 1.2 million people had to deposit additional margin funds. This situation highlights a common issue for many families in this country: during a bull market, they seek quick profits by using leverage; but when a bear market hits, not only do their savings disappear, but they may also end up in debt, which could even lead to the breakdown of marriages.
Similar cases exist in this country as well. Some individuals use their salaries to invest in stocks with leverage. When their floating profits double, they are happy, but after a sharp drop, their accounts are liquidated, leaving them with no savings. If their spouses are unaware of the investment, they may demand that the spouse bear the losses alone, which can sometimes lead to divorce. This shows that stock trading is not a personal matter; once family assets are involved, the risks and responsibilities must be carefully considered in advance.
Who Bears the Losses from Stock Investments?
There are three situations where the investor can be held responsible for their own losses:
- Written Agreement: If a property agreement is in place specifying who will bear the losses, then that agreement will prevail. Even if no agreement was signed beforehand, a court will recognize it if both parties subsequently agree in writing that one party will bear the losses.
- Using Pre-Marital Personal Assets: If you use pre-marital savings to invest in stocks and suffer losses, those losses are your responsibility. However, be careful not to mix pre-marital and post-marital assets; otherwise, the losses may be considered joint.
- Secret Stock Trading That Seriously Damages Family Interests: This is the most common scenario, such as using money from selling a house, children's education funds, or elderly care funds without the spouse's consent. If you continue trading despite opposition and suffer significant losses (for example, in a case from the Beijing High Court where the husband secretly used 1.44 million out of 2.28 million from the house sale to trade stocks and lost half of that amount within two months, the court ruled that the wife was entitled to a portion of the assets), you will be held fully responsible for the losses and may receive a smaller share of the assets in a divorce.
How Are Stock Investments Profits Distributed?
Disputes over profits can arise, depending on whether the stocks were purchased before or after marriage:
- Pre-Marital Stocks: Profits are handled differently. If you bought stocks before marriage and did not make any transactions after marriage, and the value of the stocks doubled, the increase is considered your personal property. If you traded the stocks after marriage, the profits are joint property as you invested time and effort into managing them.
- Post-Marital Stocks: Profits from these stocks are always joint property, regardless of the amount. In a divorce, you can negotiate the division of the stocks, or the investor may give half of the market value to their spouse.
The Pitfall of Borrowing Money to Trade Stocks
What if you borrow money to invest in stocks without your spouse's knowledge? According to the legal principle of "joint debts require joint signatures," the debt is not considered joint unless it can be proven to have been used for family expenses (e.g., supporting the household). For example, if a husband secretly borrows 1 million to trade stocks and loses it without his wife's knowledge, the debt is his responsibility alone.
Three Practical Tips to Protect Family Assets and Avoid Disputes
1. Sign a Property Agreement: Clearly define how profits and losses from stock investments will be handled, especially for high-risk investments like those involving leverage.
2. Separate Accounts: Use pre-marital personal assets for stock trading by opening separate securities accounts and bank cards to avoid mixing them with joint assets.
3. Keep Evidence: Keep records of your pre-marital savings, transaction details, and any conversations about your spouse's opposition to the investment, in case disputes arise.
The ups and downs of the stock market should not overshadow family happiness. Discuss your investment plans with your spouse before making any investments to prevent financial issues from becoming a source of conflict.
(Note: All cases and legal provisions mentioned in the article are based on the original text and have been translated into plain language for easy understanding by non-professionals.)