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Breaking up is hard to do financially

2014-01-07 09:34:59

7 January 2014

Prenuptial agreements around the world...

Planning a wedding is stressful enough, so for many couples, considering how

they would handle the financial fallout of a split is hardly on their minds

ahead of the big day.

But that might be changing. With a growing number of international marriages

has also come an increase in the prevalence of prenuptial agreements, say some

lawyers who specialise in matrimonial law.

A prenuptial agreement or pre-nup is a legally binding contract which can

outline how finances and possessions would be split and handled if a couple

divorce. In some countries, these agreements have existed for hundreds of years

while in others, they re relatively new. In addition to protecting each partner

s assets, these agreements can be designed to protect family money, companies

or real estate.

One reason for a pre-nup is to create clarity and protection of wealth and

assets clarity, that is to have a clear arrangement on how the family

partnership will operate, said Jeremy Morley, an international divorce lawyer

based in New York.

Morley said pre-nup discussions can open the door to how couples expect to run

their financial affairs during their marriage. All over the world, people don

t talk about money, but it s very hard to predict the future and how

relationships will change, he added.

Without a pre-nup, the courts will decide how marital assets are divided after

a split according to a country s laws. Pre-nups are insurance policies against

high lawyer fees, said Randy Kessler, partner at Kessler & Solomiany, a law

firm in Atlanta. In Kessler s opinion it is unlikely that the other side will

spend a lot of money if a pre-nup exists.

But before entering into a pre-nup, spouses need to consider which assets they

want to protect or the financial support they would need to maintain their

current lifestyle if they were to separate from their partner. Agreements can

also include sunset provisions that will make the pre-nup invalid after a

certain period of time. And married couples can even enter into a post-nuptial

agreement after they are married that acts in a similar way to a pre-nup.

BBC Capital spoke to family law lawyers in the United Arab Emirates, France,

Germany, Japan and the US for more information about how these agreements work

around the world. Scroll through the images above to see the ins-and-outs of

pre-ups in those countries.