A Prenuptial agreement, also referred to as a “prenup” is a form of contract entered into by couples before they get married, outlining the rights and responsibilities, division of assets, including debt, in case of divorce, separation or death of any of the spouses.
- Why is it important to enter a Prenup?
- Allows couples to protect their individual assets before marriage.
- Outlines financial expectations, and handling joint finances.
- Avoids lengthy and costly battles in case of divorce.
- In case individuals were to inherit family wealth or expect significant future inheritance, a prenup ensures the wealth remains within the family.
- Sets terms and limits of spousal support, or alimony, or maintenance in the event of divorce or separation.
- Safeguards interest of the children from previous relationships
- Key areas to be considered:
- Clearly define assets and debts each party is bringing into the marriage, to manage division in case of divorce or separation.
- Clearly defining whether any property, which may be acquired during the case of marriage, should be jointly held, and how the division of any property will be affected which may also include financial investments made jointly and/or individually during the course of the marriage.
- Clearly address the issue of alimony, including predetermined amount, and the payment duration.
- Any specific inheritance concerns, such as protecting family assets and ensuring children from previous relationships receive their rightful inheritance.
- Specifies how financial responsibilities will be shared during the marriage, including joint expenses management, and specific bill payments.
- If one or both parties own a business, it is crucial to address how the business will be valued, divided, or protected in the event of divorce or separation.
- Including provisions related to estate planning, such as wills, trusts, and other instruments that outline how assets will be distributed upon death.
- Lay down appropriate jurisdiction laws, which will govern the prenuptial agreement and at the same time, establish the procedures for resolving disputes such as arbitration or mediation. This would verify the legal framework for the agreement, and guidelines for potential conflicts.
- Can you get a prenuptial agreement in the UAE? What should it include?
In the UAE, there are no explicit law regulating prenuptial or postnuptial agreements. Such an agreement is simply a contract between both parties, and the courts take them into consideration as one of the factors affecting its decision regarding parties’ assets/wealth.
The new civil personal status law for non-Muslims federal decree no.41/2022 refers to the conditions of the marriage contract, which suggests that couples can reach a prenuptial agreement before they get married under the law.
This is in referral to article 6(2) of the law, stating that “Marriage shall take place by filling out the form prepared to this effect by both spouses before the certification judge. Spouses may agree on conditions of the contract, and the contract, shall, as between them, prevail in terms of rights of the spouses during the marriage, and post-divorce rights, especially the joint custody of the children.”
It is essential to carefully draft a prenuptial agreement based on the specific needs and circumstances of the couple, taking into account the tangible assets that each individual brings to the marriage. The agreement should clearly outline the terms and conditions regarding asset division, spousal support or alimony in case of divorce or death.
The specific terms of the agreement would depend on individual cases circumstances.
- International Prenuptial Agreements:
Moreover, the laws governing prenuptial agreements and marriage contracts vary considerably around the world and – just as important -the attitudes of contracts to such contracts diverge considerably, significantly and in many different ways from country to country. A prenup currently valid in the place of marriage or residency is not equally valid in other places.
