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Prenuptial Agreements Around the World
Prenuptial Agreements for
International People
by Jeremy D. Morley
When people who live in different jurisdictions or who contemplate doing
are planning to marry they should consider entering into a prenuptial
agreement. They or their advisers should consider the law of all
jurisdictions.
We draft prenuptial agreements for international people, often acting in
collaboration with lawyers in other countries.
The information below is for informational purposes only. It must be
checked by legal counsel in the local jurisdiction before being acted
on.
Australia - Prenuptial Agreements.
Prenuptial agreements, known as "binding financial agreements",
first became enforceable in Australia in 2000 with the enactment of the
Family Law Amendment Act 2000. Part VIIIA of the Family Law Act sets
forth particular provisions concerning the oversight to be given to such
agreements by family law solicitors. For a binding financial
agreement to be binding it must be in writing signed by both parties; be
given (the original) to one party with a copy given to the other;
specify the extent of any spousal maintenance provided; and state that
both parties have received specified independent legal advice and annex
a certificate of an independent lawyer to that effect. An agreement will
not be binding if it was obtained by fraud, or was made under duress, by
mistake, or by virtue of undue influence, or if it is impracticable for
all or part of the agreement to be carried out, or if there has been a
material change in the care of a child leading to hardship, or if a
party engaged in unconscionable conduct when making the agreement, such
as where one spouse is at a disadvantage, the other spouse knows it and
the agreement runs contrary to good conscience.
Austria - Prenuptial Agreements.
Austria is
a party to the Hague Convention on the Law Applicable to Matrimonial
Property Regimes, which specifically authorizes prenuptial agreements.
Bahamas - Prenuptial agreements
Prenuptial
agreements are not enforceable in the Bahamas but courts might take them
into account in determining the intention of the parties. In general,
the Bahamas will follow the English approach.
Brazil- Prenuptial Agreements.
Prenuptial
agreements are enforceable. Article 256, II of the Civil Code.
Canada - Prenuptial Agreements.
Prenuptial agreements are enforceable in Canada. Courts in Ontario and
other common law provinces of Canada previously considered marriage
contracts to be contrary to public policy and unenforceable, but the
1978 Family Law Reform Act (now continued in the Family Law Act)
specifically authorized marriage contracts. The Family Law Act provides
that a court may set aside a provision for support or a waiver of the
right to support in a marriage contract and may determine and order
support even though the contract contains an express provision excluding
the application of this section:
a. if the provision for support or the waiver of
the right to support results in unconscionable circumstances;
b. if the provision for support is in favor of,
or the waiver is by or on behalf of, a dependant who qualifies for
allowance for support out of public money; or
c. if there is default in the payment of support
under the contract or agreement at the time the application is made.
As a
result, a provision in the marriage contract either limiting or
precluding a claim for future support is very much subject to the
discretion of the court at the time an application for support is made.
Even as to
assets, prenuptial agreements s are not insurmountable. A Canadian court
might modify or even ignore an agreements is some circumstances, such as
if an unforeseen financially disabling or devastating event has
occurred. Some provinces expressly provide that their courts may set
aside a prenuptial agreement if it is "unfair". Thus, Section 51 of
British Columbia's Family Relations Act states that even if there is a
valid marriage contract, the court may re-divide the assets on the
basis of fairness
China
- Prenuptial Agreements.
Prenuptial
agreements are now enforceable in China. Article 19 of the 2001 Marriage
Law specifies that:
"So far as the property acquired during the period in which they are
under contract of marriage and the prenuptial property are concerned,
husband and wife may agree as to whether they should be in the separate
possession, joint possession or partly separate possession and partly
joint possession. The agreement shall be made in writing. The provisions
of Articles 17 and 18 of this Law shall apply to the absence of such an
agreement or to a vague one.
The agreement reached between the husband and wife on the property
acquired during the period in which they are under contract of marriage
and on the prenuptial property is binding on both parties.
If husband and wife agree, as is known to the third party, to separately
possess their property acquired during their marriage life, the debt
owed by the husband or the wife to any other person, shall be paid off
out of the property separately possessed by him or her."
England and Wales - Prenuptial Agreements.
In
England and Wales the courts have traditionally given little weight to a
prenuptial agreement, and have viewed the enforcement of prenuptial
agreements as being against public policy. Thus, in F v. F (Ancillary
Relief: Substantial Assets), (1995) 2 F.L.R. 45, Thorpe J. stated that a
pre-nuptial agreement must be "of very little significance" since the
distribution of assets must take place in accordance with statutory
formula and "cannot be much influenced by contractual terms." Likewise,
in N v N (Jurisdiction: Pre-Nuptial Agreement) (1999) 2 FLR 745 the
court refused to enforce even a portion of a prenuptial agreement in
which the husband had agreed that, in the event of a divorce, he would
take all steps religiously necessary to allow his wife to obtain a
"get", allowing her to remarry under Jewish law. The court held that
"Even if one divides up the antenuptial agreement in this case, and
looks at the individual clauses separately, one cannot, in my judgment
avoid the fundamental proposition that each is part of an agreement
entered into before marriage to regulate the parties' affairs in the
event of divorce. The public policy argument, therefore, continues to
apply." [754f].
However, the traditional view is shifting. The English courts appear to
be saying that a prenuptial agreement can be a material consideration
when considering what adjustments to make to a divorcing couple's
financial circumstances on divorce. In M v M (Pre-nuptial Agreement)
(2002) 1 FLR 654, the court was prepared to take the couple's
pre-nuptial agreement into account as a factor tending to reduce the
final award to the wife. Most significantly, in K v K (2003) 1 FLR 120,
the court the held the wife was limited to the terms concerning capital
distribution that she had agreed to in a prenuptial agreement which she
had signed. The court set forth the factors to be considered in
determining the weight to attach to a prenuptial agreement. The decision
indicates that, where there is no duress, the parties have received
independent legally advice, the relevant facts have been disclosed and
the agreement is not manifestly unfair, the courts are increasingly
likely to uphold the terms of a prenuptial agreement.
English courts might enforce foreign prenuptial agreements if the
applicable law is that of a jurisdiction that enforces marital
agreements. In general, if the married parties are domiciled in
different jurisdictions, English law provides that the matrimonial
domicile (which, even today, usually follows the domicile of the
husband) determines the law applicable to the couple’s movable property.
Therefore, if the husband is domiciled in a jurisdiction that would
enforce a prenuptial agreement, the terms of the agreement should be
applicable to all of their property except for real estate.
See
our article
Enforceable Pre-nuptial Agreements:
the World View
Finland - Prenuptial Agreements.
Prenuptial agreements are enforced in Finland. A new law applies in
Finland which allows the spouses to decide in advance which law will
govern their marriage, provided that at least one of the spouses has a
connection based on nationality or domicile to the State whose law they
want to apply.
France - Prenuptial Agreements.
France is
a party to the Hague Convention on the Law Applicable to Matrimonial
Property Regimes, which specifically authorizes prenuptial agreements.
Specific provisions concerning prenuptial agreement are also set forth
in the Code Civil Francais, art.1387 et seq. Under French domestic
law, future spouses who wish to enter into a pre-nuptial agreement must
appear together before a notaire prior to the wedding and select one of
the regimes matrimoniaux offered by the French Civil Code. The parties
can select their preferred property regime, choosing between several
versions of the community property and other regimes, including
separation de biens (separate property). Whatever statutory regime is
selected, it can be modified to accommodate their specific needs,
subject to certain public policy limits. Where parties choose not to
enter into a pre-marital agreement, the default regime de communaute
legale, a community property regime, governs the legal relationship of
the spouses.
See
France Civil Code
Prenuptial Agreements
Germany - Prenuptial Agreements.
Prenuptial agreements are enforceable. However, Germany's Federal Court
of Justice
recently
ruled that notarized prenuptial
agreements that seriously disadvantage one party in a marriage could be
deemed invalid. The judges stated that while, in principle, a contract
may state that one of the partners has renounced his or her right to
receive alimony, if the agreement is one-sided it would be morally
unacceptable and could therefore be challenged. The court also ruled
that a spouse is free to contest the contract in instances of imbalance
where her partner's income has risen dramatically during the marriage
because, for example, she was home caring for children.
Greece - Prenuptial Agreements.
Prenuptial
agreements are enforceable.
Hong Kong - Prenuptial Agreements
It is
unclear to what extent prenuptial agreements are effective under Hong
Kong law. Section 7 of Hong Kong’s Matrimonial Proceedings and Property
Ordinance (“MPPO”) sets forth the relevant factors to be considered by a
court in resolving the financial issues between divorcing spouses, These
factors do not include an agreement between the parties. Certainly
prenuptial agreements in Hong Kong are not required to be enforced but
if both parties were represented by counsel when they were signed, and
if the documents were signed long before the actual wedding date, they
may then be of significant evidentiary significance.
Ireland - Prenuptial Agreements.
In
Ireland it appears that the courts are not required to enforce
prenuptial agreements. The Family Law (Divorce) Act 1996 gives the Irish
courts extremely wide discretion over the distribution of a divorcing
couples assets. There is a dearth of authority on the issue of the
extent to which a court in Ireland will take a prenuptial agreement into
consideration in its distribution of assets and, in the absence of such
authority, it is assumed that Irish courts will not consider and will
almost certainly refuse to automatically enforce -- a prenuptial
agreement. See, e.g. Geoffrey Shannon, Pre-Nuptial Agreements in
Ireland, 2003 I.F.L. 132. In M.G. v M.G. (Circuit Family Court
Dublin July 25, 2000) Buckley J. stated that where the parties were well
educated, intelligent persons who received independent legal advice
before entering a separation agreement and the
agreement was of recent date, the courts should be slow to make any
radical changes to such an agreement.
Israel - Prenuptial Agreements.
See
attached article
Italy - Prenuptial Agreements
Despite
scarce case law on such agreements, it is possible that general
principles of contract law will require that contracts made in
preparation for an imminent divorce will be deemed null and void on
public policy grounds. (Cass. civ., 11 agosto 1992, n., 9494, cit.,
above note 35: “È nulla, per illiceità della causa, la transazione circa
I rapporti economici che sia intervenuta tra i coniugi prima del
procedimento di divorzio.”).
However,
many jurists in Italy dispute this view.
The
difficulties caused by denying validity to such contracts is mitigated
by the availability of the “separazione dei beni” agreement, which may
be implemented prior to the marriage. This may cover only the assets
acquired by either party during the marriage.
Prenuptial
agreements entered into pursuant to foreign law which are valid under
that law may be enforceable in Italy unless void on public policy
grounds.
Jamaica - Prenuptial Agreements.
Jamaica permits
prenuptial agreements if they are in writing and witnessed as provided
by law, and if each party was represented by independent counsel, unless
the court is satisfied that it would be unjust to give effect to the
agreement. (Sec. 10, Family Property (Rights of Spouses) Act, 2003).
Japan - Prenuptial Agreements.
In Japan, the Horei
Law authorizes spouses who marry in Japan to choose which matrimonial
law regime will govern their marriage, provided it is either the law of
the country of either spouses nationality or habitual residence or,
regarding immovables, the law of the location of the immovables. The
Horei Law also specifies that prenuptial agreements are valid when made
under the provisions of a foreign law, and sets forth a provision for
registration of foreign prenuptial agreements in Japan.
Forum selection clauses are widely upheld by Japanese courts. Their
validity in prenuptial agreements that preclude the jurisdiction of
Japanese courts will likely be upheld if (a) the matter in question is
not within the exclusive jurisdiction of the Japanese courts and (b) the
court designated by the agreement would have jurisdiction over the
matter in question, independently, under the law applicable in that
forum.
Luxemburg - Prenuptial Agreements.
Luxemburg is a party to
the Hague Convention on the Law Applicable to Matrimonial Property
Regimes, which specifically authorizes prenuptial agreements.
Netherlands - Prenuptial Agreements.
In The Netherlands, the
parties may enter into a prenuptial agreement at the time of concluding
their marriage (or during the marriage itself but in the latter case,
the approval of the courts is required. They can thereby choose between
one of three models described in the code, or regulate their property
relations, with some limitations, as they wish. The prenuptial agreement
has to take the form of a notarial deed and to be entered in a
matrimonial property register. Antokolskaia & Boele-Woelki, Dutch Family
Law in the 21st Century: Trend-Setting and Straggling behind at the Same
Time, vol 6.4 Electronic Journal Of Comparative Law (Dec. 2002). The
Netherlands is a party to the Hague Convention on the Law Applicable to
Matrimonial Property Regimes, which specifically authorizes prenuptial
agreements.
New Zealand -
Prenuptial Agreements.
Prenuptial agreements
have been permitted in New Zealand since enactment of the Matrimonial
Property Act 1976.
The Property
Relationships Amendment Act 2001 renamed the 1976 act as the Property
(Relationships) Act 1976 and extended the property division regime to
the division of the relationship property upon separation or death of
married couples, partners in de facto relationships and partners in same
sex relationships. The general rule is that of equal division of
property brought into being during the relationship.
Section 21 of the
Property (Relationships) Act 1976 expressly authorizes married and de
facto couples to enter into opt-out agreements with respect to the
status, ownership and division of their property, including future
property. The agreements must conform to certain formalities.
Previously if such an
agreement caused 'injustice' it could be set aside. From 2001 such
agreements cannot be set aside unless it is established that they cause
'serious injustice'. Accordingly, it is expected that not many
agreements will be set-aside in the future. The purpose of the reform
was to provide greater certainty as to the enforceability of
contracting-out agreements.
The
Act also contains (Sec. 7A(2)) somewhat unusual provisions concerning
the applicability of foreign prenuptial agreements to “relationship
property” as defined by New Zealand law, which require that prenuptial
agreements drafted anywhere that involve a New Zealand connection should
be drafted carefully.
Norway - Prenuptial
Agreements
The
spouses may enter into binding agreements concerning maintenance and
other matters before or after divorce or during divorce proceedings. See
e.g. Norway’s Marriage Act,
Section 83. A spouse may agree to renounce his or her future right to
maintenance, as long as it is not with regard to a hypothetical future
divorce.
The
Brønnøysund Register Centre -- which is Norway's central register
authority -- contains a Register of Marriage Settlements. That Register
contains agreements between spouses regulating their assets/property in
a different way than what automatically follows from marriage
legislation. If, for example, spouses wish to register separation of
property, they must establish a marriage settlement. If the marriage
settlement is to confer protection against any creditors, it must be
registered in the Register of Marriage Settlements. The same provisions
apply to registered partners.
The
Register of Marriage Settlements contains registered marriage
settlements from 1928 up to the present. A total of 120,000 marriage
settlements registered prior to 1981 have been registered in a manual
index file, while registrations after 1981 can be searched in a
database.
The
Register of Marriage Settlements contains important information about
the assets/property of spouses, and the principle that such information
should be public applies to this register as well. To obtain information
about a marriage settlement it is sufficient to submit the name, date of
birth and address of one of the spouses. For electronic searches in the
database of marriage settlements it is helpful to also provide the
national identity number of one of the spouses.
Philippines - Prenuptial Agreements.
The law of the
Philippines allows spouses to execute and file with the Civil Registry a
prenuptial Property Agreement (Surat Pernyataan Harta) which must be
signed before a local notary public. Otherwise, Indonesian marriage law
assumes joint ownership of property.
Portugal - Prenuptial Agreements.
Prenuptial agreements
are enforceable. Portugal is a party to the Hague Convention on the Law
Applicable to Matrimonial Property Regimes, which specifically
authorizes prenuptial agreements.
Russia - Prenuptial Agreements.
Prenuptial
agreements are enforceable. Grounds For Divorce And Maintenance Between
Former Spouses: Russia Dr. Masha Antokolskaia
http://www2.law.uu.nl/priv/cefl/Reports/pdf/Russia02.pdf.
Singapore - Prenuptial Agreements
Prenuptial
agreements are treated "cautiously" in Singapore. The existence of an
agreement concerning financial matters is "only one factor that the
court is obliged to consider." See also our article,
Prenuptial Agreement Upheld in Singapore.
South
Africa - Prenuptial Agreements.
Prenuptial agreements
in South Africa are enforceable.
Spain - Prenuptial Agreements.
Prenuptial agreements are enforced in Spain, unless they should be
detrimental to the children or seriously damaging to one of the spouses.
Article 90, Spanish Civil Code. In recent years, there has been a large
increase in the number of prenuptial agreements signed in Spain.
Separate Property and Family Self-Determination in Catalonia: A Peaceful
Model under a Radical Change? Albert Lamarca i Marqus.
http://civil.udg.es/isfl/europeanregionalconference2003/texts/pdf/Lamarca.pdf
Sweden - Prenuptial Agreements.
Prenuptial agreements
are enforced in Sweden.
Switzerland - Prenuptial Agreements.
Prenuptial
agreements are enforceable in Switzerland. Prior to a marriage abroad,
you must consult the private international law of the chosen country to
find out the conditions to be met and the applicable judicial
regulations. This informed outlook will help you choose a solution that
best suits your needs. In fact, the applicable matrimonial regime will
be the one you will have chosen (written agreement, marriage contract).
You may choose between the law of the country in which both of you are
residing and the law of the country of which one of you is a citizen.
You may modify your selection at any time. In general, if you have not
expressed a choice, the law of the country of residence applies.
Micheloud & Cie 2003
http://switzerland.isyours.com/e/immigration/marriage/marrying_a_swiss_outside_of_switzerland.html
Taiwan - Prenuptial Agreements
Prenuptial
agreements are enforceable in Taiwan. See
relevant provisions of Taiwan
Civil Code
Thailand - Prenuptial Agreements.
Prenuptial agreements
are enforced in Thailand.
Turkey - Prenuptial
Agreements
Prenuptial agreements
are permitted in Turkey. There are three types of optional regimes:
separation of assets, participation in separated assets and partnership
in assets.
Turkmenistan -
Prenuptial Agreements
It is reported that a
foreign man who wishes to marry a Turkmen woman must first sign a
prenuptial agreement with the proposed spouse based on a state-provided
template.
U.S. Virgin Islands -
Prenuptial Agreements.
Prenuptial agreements are presumptively valid in the United States
Virgin Islands. |