When it comes to marriage vs divorce, couples file for prenuptial agreements to maintain a hold on their personal assets. This contract also prevents their spouse from getting their hard-earned money if they file for separation.
A lot of people in Singapore are becoming interested in filing for a prenuptial agreement. Along with this, statistics prove that among several Singaporeans, especially women, prenups are becoming more common.
In this article, you’ll read:
- Marriage vs Divorce: Here’s Why More Couples File Prenuptial Agreements
- Things to Know about the Prenuptial Agreements in Singapore
Have you heard of the conditions involved in prenuptial agreements? Or do you already know it but want to deepen your understanding? Well, we compiled all the information you need.
A prenuptial agreement is a legally binding document filed by a couple before they the knot. It primarily concerns the ownership of their respective assets if the marriage happens to fail.
The agreement intends to govern what will happen should a couple decide to divorce one another. To make things easier to understand, a prenuptial agreement is a form of insurance against divorce.
It could be the one way of having some level of certainty about their rights over the things they own. It includes assets, property, maintenance, and even when it comes to children matters.
Marriage vs Divorce: Here’s Why More Couples File Prenuptial Agreements
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Before they walk down the aisle, couples weigh the pros and cons of marriage vs divorce. This includes filing for a prenuptial agreement that helps them keep their money and properties.
A prenup is a legal document that a couple agrees upon before getting married. Before officially committing their lives to each other, they would want to decide first on how they should divide their assets should a divorce happen.
Here are common reasons why people choose to file for prenuptial agreements:
Family Inheritance
Many people filing for the prenuptial agreement have a family inheritance to protect. Whatever inheritance it is, a prenup could be a form of insurance in securing it. Whether it is a property or family business, a prenup can ensure that yours will remain yours in the course of the marriage.
The Possibility of Divorce
Talking about marriage vs divorce between soon-to-be-married couples can be quite tricky. No one would want to enter that marriage thinking about the possibility of its failure.
A prenup could allow couples to communicate and prepare themselves for the possibility of divorce openly. It is not because one person wishes for divorce to happen eventually, but because it is a reality impossible to ignore.
Remember that it is not wrong to think about the possibilities that could happen after marriage. When you choose to prepare yourselves for the possibility of divorce, you are emotionally realistic.
Protection From the Debt of the Other
Debt is another unfortunate reality of life. Some people bring their debt into marriage along with furniture and family.
Additionally, the ongoing rise of prices due to inflation strengthens the need for prenups among couples. It helps them secure their earnings and avoid possible feuds with their in-laws.
A prenup can help limit a person from being exposed to another person’s debt in case of divorce. It could outline the separate debt of each person going into the marriage and their assets.
It will be beneficial to have a clear division between those debts and debts accrued by the couple during their are married.
Things to Know about the Prenuptial Agreements in Singapore
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In the past years, the uptake in interest in prenuptial agreements generally increased. People are becoming more interested in prenups and how they should do them.
Many legal representatives and advisors have been getting more queries about prenuptial agreements over the years. This is very much particular to those parties who come from wealthier families.
Benefits of a Prenuptial Agreement
A prenup is not automatically enforceable in Singapore. However, entering into a prenuptial agreement offers several benefits, including the following:
- Protects assets owned before the marriage
- Keep finances separate
- Protects parties from each other’s debts
- A clear understanding of the financial arrangements in the event of divorce
- Establish property rights and distribution
Prenuptial Agreement in Singapore
Several countries across the globe recognise prenuptial agreements to be valid and legally binding. However, in Singapore, the law regarding prenup is not as straightforward as the other countries.
A prenuptial agreement in Singapore is not automatically valid and legally binding. The terms and conditions in an agreement should always be subject to the scrutiny of the court.
Law in Singapore requires all prenuptial agreements to comply with the basic requirements of contract law strictly. The prenup can be set aside when a person fails to disclose all assets when signing the agreement. The couple must also disclose evidence of fraud, duress, unfairness, or lack of representation.
In addition, the Court of Appeal is the one to discuss the enforceability of prenuptial agreements. It will depend on their assessment in weighing a just and equitable decision.
