A difficult but necessary conversation couples ought to have before tying the knot!
Kajal Aswani discusses prenuptial agreements and her role as a family lawyer to guide and support couples in understanding the importance of such legal documents.
Future spouses need to recognise that open communication and proactive planning are vital for a successful and harmonious marriage. Prenups are essential legal documents that can provide clarity and security for couples before they tie the knot. They allow individuals to protect their assets and define the financial terms of their marriage, ensuring peace of mind for both parties.
In today’s ever-changing world and especially in Hong Kong, prenuptial agreements are becoming increasingly relevant. They offer a practical solution for couples who want to safeguard their individual interests and establish a solid foundation for their future together.
By openly discussing and drafting a prenuptial agreement, couples can address potential financial concerns in a transparent and respectful manner. It allows them to navigate complex financial matters, protect their personal wealth, and minimize conflicts that may arise in the unfortunate event of a divorce.
SHOW NOTES:
00:27 Building trust
01:09 Financial security
01:33 Protecting your assets
01:51 Avoiding lengthy legal battles
02:12 Position of the Courts in Hong Kong
02:46 Requirements for a prenup to be legally valid and enforceable
03:33 Steps to take before setting up a prenup
04:22 To sum it up!
TRANSCRIPT
Prenuptial Agreements
Love is a beautiful journey, full of joy, trust, and endless possibilities. But what if we told you that there is a way to strengthen that bond even further? Today, I would like to talk about prenuptial agreements and its effect in Hong Kong.
Building trust
A prenuptial agreement is a private agreement entered into couples before their marriage to deal with matters such as distribution of assets, gifts and inheritance and financial support during the marriage and in the unfortunate event of divorce.
Whilst a prenup is generally considered unromantic, conversations revolving around prenups help couples openly communicate and establish trust before tying the knot. By discussing important topics such as finances, property, and assets, you are building a solid foundation for your future together.
Financial security
One of the key benefits of a prenup is financial security. It ensures that both parties are protected, regardless of what the future may hold. By clearly outlining financial responsibilities, debts and assets, you are creating a blueprint for a stable and worry-free future.
Protecting your assets
A prenup allows you to protect your hard-earned assets. Whether it is a family business, real estate, or investments, a prenup ensures that your individual assets remain yours, even in the unfortunate event of a divorce.
Avoiding lengthy legal battles
Nobody wants to think about the possibility of divorce, but it is essential to be prepared. A prenup can serve as a helpful way to manage expectations and to avoid unnecessary and costly disputes at the time of separation, when emotions are running at their highest.
Position of the Courts in Hong Kong
There is no legislation governing prenups in Hong Kong and these do not bind the Courts of Hong Kong. However, Courts in Hong Kong can now give ‘decisive weight’ to prenups when considering the financial claims on divorce, provided that the prenup was entered into by the parties freely, with full appreciation of its implications and the terms of the prenup is fair.
Generally, prenups do not cover issues relating to future care arrangements for children or their financial support.
What are the requirements for a prenup to be legally valid and enforceable?
- Parties should feel that they are on an equal footing and able to negotiate the terms without pressure when signing a prenup;
- Parties should have a full understanding of the implications of signing a prenup;
- The terms should be fair to hold the parties to the prenup at the time of divorce considering all the circumstances of the case.
- Financial disclosure is clearly desirable and we advise parties to produce it.
- Each party should obtain independent legal advice to understand their rights and obligations before signing the prenup.
Remember, if there are any unforeseen changes since the prenup, this may impact its fairness and enforceability.
What steps to take if you are thinking about having a prenup?
- Plan ahead and leave sufficient time to discuss and negotiate the terms with your partner.
- Discuss with you partner what assets are to be ringfenced and other areas that you wish to cover in a prenup;
- Identify suitable lawyers who have the expertise in this area and set up an initial consultation as soon as you have started your discussion;
- Consider the draft prenup carefully and raise any questions or concerns that you may have with your lawyer before signing the prenup.
- Ideally the agreement should be signed well in advance of the wedding date. A gap of at least 28 days between the signing of the prenup and your wedding date is advisable to avoid any arguments of duress or undue influence.
To sum it up!
So, whether you are just starting your journey together or you have been together for years and are thinking about tying the knot, do consider the power of a prenup. It is not just about protection; it is about building a future filled with openness, trust and financial security. Prenups offer couples the opportunity to protect their finances and establish clear guidelines in the event of a divorce or separation.
Secure your future with a prenup. Start the conversation today and get in touch with us so that we can help you.
This video is for informational purposes only. Its contents do not constitute legal or professional advice.
