A prenuptial agreement is a legally binding contract between prospective marriage partners entered before marriage that determine, in the event of a divorce, how the terms of the divorce would be settled, especially with regards to assets, properties, and matters pertaining to the care and maintenance of children.
They are usually entered before marriage by partners where one or both partners have sizable assets, especially properties, businesses, and family heirlooms, and wish to define the assets to be “excluded” from the terms of the divorce settlement.
While both partners may wish for this to be so, a prenuptial agreement takes on urgency where the partners’ assets before marriage are very unequal, where one partner stands to win a lot of assets that he or she didn’t own prior to the marriage in the event of a divorce settlement.
Are prenuptial agreements valid in Singapore? Don’t the courts decide all divorce settlement terms? The truth is a little more complex and nuanced.
It is expressly provided in the Women’s Charter (WC) that the Courts have full discretion in deciding the custody, care and the control of the children of the marriage, and also the terms of maintenance of the wife and children, and the division of matrimonial assets. The Courts have the power to override a prenuptial agreement and decide on its own what is fair and reasonable, and do what is necessary in the best interests of the children. The Courts are the ultimate arbiter of a divorce settlement, and will generally uphold the prenuptial agreement as long as the terms are reasonable
If you have a need to draft a prenuptial agreement, Yuen Law can help you in the following specific ways:
- As a prenuptial agreement is essentially a contract between two marriage partners, it has to satisfy all requirements in contract law for it to be valid. Yuen Law will help you ascertain and document these conditions, so there would be no question about the agreement’s validity in the event of a divorce settlement.
- Based on precedence, and familiarity with the Women’s Charter, Yuen Law will advise you on the likelihood on certain terms of your prenuptial agreement being accepted by the courts.
- Drafting the agreement that protects the assets you care about, while maximising the chance of it being accepted by the courts.
At the same time, Yuen Law recognises the sensitive nature of such an endeavour, and will proceed with the utmost tact and grace, so the discussion of an unhappy possibility in the future does not spill over to sully the happiness of a marriage in the present.
Yuen Law LLC provides assistance in matters regarding prenuptial agreements. Do contact us to make an appointment.
