Prenuptial Agreements: A Simple Guide for Non-Muslim Couples

Marriage is a joyful occasion, but planning for the future is important. Prenuptial agreements (prenups) can help couples protect their assets and set clear expectations. As an international law firm, a lot of our private client work at Yungo Law is advising expats in the UAE on family law matters.

If you a non-Muslim couple in the UAE considering the pros and cons of a prenup, we have put together the following detailed guides on the benefits and the challenges you might encounter when it comes to a prenuptial agreement.

Non-Muslim Couples: What is a Prenuptial Agreement, or a Prenup?

A prenuptial agreement is a contract made before marriage. It outlines how assets, debts, and spousal support will be handled if the couple divorces or separates. In the UAE, the Civil Personal Status Law for Non-Muslims (Federal Decree Law No. 41 of 2022) allows conditions in the marriage contract to be considered by the court during divorce proceedings. This means prenups can cover financial obligations, asset division, and even child custody (subject to UAE’s child custody regulations).

What are the pros of a prenuptial agreement?

Financial Transparency:

Both partners must fully disclose their financial circumstances, including assets and liabilities. This promotes honesty and transparency, ensuring both parties are fully informed about each other’s financial standing before marriage. This level of openness can build trust and lay a strong foundation for financial decision-making within the marriage.

Avoidance of Litigation:

A prenuptial agreement sets out clear guidelines for how assets and debts will be divided, which can help avoid lengthy and costly legal battles in the event of divorce. By having these terms agreed upon beforehand, couples can minimise conflicts and reduce the emotional and financial strain associated with litigation.

Clarity in the Agreement:

A prenup can specify terms for spousal support, custody arrangements, and other important matters. This clarity can prevent misunderstandings and disputes during the dissolution of marriage and divorce proceedings. Knowing in advance how these issues will be handled can provide peace of mind and reduce stress.

For business owners, a prenup can be an important legal framework to ensure that the business assets are protected and there is no division of assets in a divorce. This can be crucial for maintaining the stability and continuity of the business, protecting both the business itself and the livelihoods of any employees.

Protection of Children:

A prenup can include provisions that protect the inheritance and financial support of children from previous marriages or relationships. This ensures that the interests of children are safeguarded and that their financial future is secure.

What are the cons of a prenup?

Potential Harm to the Relationship:

Discussing a prenup can be uncomfortable and may create tension or conflict between partners. It can detract from the more romantic aspects of planning a wedding and may cause stress or disagreement.

Unfavourable Terms:

One partner may end up with less favourable terms if the prenup is not negotiated fairly. This can happen if one partner has significantly greater bargaining power or if the terms are not thoroughly reviewed and understood.

Limited Coverage:

A prenup might not cover all potential issues, especially if there are significant changes in circumstances after the agreement is signed. This can include changes in financial status, the birth of children, or other unforeseen events.

Working with a family lawyer in the UAE on your pre-nup

Before you make the decision to get a prenup as a non Muslim couple in the UAE, you should do your research and gain a good understanding of what a prenup can and cannot do, as well as the pros and cons.

Originally published at https://yungo.ae/prenuptial-agreements-a-simple-guide-for-non-muslim-couples-in-the-uae/