Preparing a Prenuptial Agreement Under Thai Law
Creating a Prenuptial Agreement Under Thai Law is an excellent idea for any couple. There are many advantages to having one of these agreements. In this article, you will learn about the benefits of a Thai Prenuptial Agreement as well as its requirements. In addition, you'll learn about some of the common problems that arise when setting up a Prenuptial Agreement in Thailand. After reading this article, you'll be well on your way to negotiating a Prenuptial Agreement Under Thai Law.
Advantages of Having a Thai prenuptial agreement
Having a prenuptial agreement in Thailand has great advantages because it prevents future conflict in the event of a divorce. These contracts allow the parties to state how the assets are to be divided between them. This is particularly important in Thailand since a divorce requires the division of all property equally. It can also prevent future spouses from taking on debt and ruining their credit.
Here are the advantages of having a Prenuptial Agreement in Thailand:
- It protects each of the parties’ respective properties by specifying beforehand how these properties will be divided, disposed of, or transferred from one spouse to the other, or whether such will be considered joint or separate properties.
- It protects business assets by requiring a spouse to waive all rights to the owner spouse’s interest in the business should the couple divorce or if one of them dies.
- It protects one spouse from the other spouse’s debts.
- It ensures that the children of a previous marriage as well as that of the present marriage would be given financial support.
- It keeps the ownership of family businesses and assets within bloodlines by not giving the new spouse any right to make claims on these assets.
- It helps avoid or at least minimize the possibility of the spouses having to go through a legal battle over property and or custody issues.
Prenuptial agreements are also helpful when the husband and wife decide to take their marriage overseas. A prenuptial agreement protects their assets when a man takes his wife home. Unlike the US, where men are not protected by a prenuptial agreement, Thai couples are allowed to choose their own system for managing marital property. However, they cannot decide on which spouse will have sole control over the marital property.
Thai Prenuptial Agreement Requirements
If you are planning to get married in Thailand, you may be wondering what the requirements for a prenuptial agreement are. In Thailand, the Civil and Commercial Code requires all prenuptial agreements to be signed by both parties and witnessed by two witnesses. The agreement must also be registered in the Marriage Register at the same time as the marriage. Once registered, a prenup cannot be changed. Therefore, it is vital to consult a lawyer to draft a prenuptial agreement that is in your best interest.
The first step in drafting a prenuptial agreement in Thailand is to consult an attorney. The legal system in Thailand is complex, and it can be very difficult to understand without legal guidance. The Thai court is unlikely to recognize prenuptial agreements made in another jurisdiction, so it is essential to work with a law firm that understands the procedure. This way, you'll avoid any pitfalls in the future.
Common Problems with Prenuptial Agreements
In Thailand, it is common to have a Prenuptial Agreement, commonly referred to as a "Prenup." A Prenuptial Agreement specifies who gets what if the couple divorces and outlines what each person will get after a divorce. The agreement should identify both parties' debts. A Thai family law attorney can draft a prenuptial agreement that will be recognized by the Thai courts and upheld in the event of a divorce.
Here are the costly mistakes or common problems with Prenuptial Agreements:
- No independent legal representation: If you and your spouse do not retain separate attorneys, a judge may shed more concern on the unfairness and bias in your agreement. As a result, your prenup may not be enforceable by the court.
- Unfair provisions: Although prenups can be biased, they cannot favor one spouse over the other in a way that is unconscionable and unfair to a reasonable person.
- Using ambiguous language: Since prenups are contracts, you must use clear and concise language at every point in your agreement. Any unclear verbiage and ambiguities could only make your situation worse if your spouse decides to legally challenge a confusing provision in court.
- Coercion/duress: Prenups must be voluntarily entered by both spouses without any pressure, threats, or force on one another. A judge will likely invalidate a prenup if they discover that one spouse used coercive tactics to manipulate the other spouse into signing such contract.
- Fraud: For a prenup to be effective and enforceable, both spouses must fully disclose their assets, properties, and debts honestly, no matter how uncomfortable the process may seem. It will be impossible to establish the division, rights, and responsibilities concerning those critical details if both spouses don’t lay out everything they own and owe. If a judge finds that one spouse hid their assets from the other, they may invalidate the contract as such.
In Thailand, prenuptial agreements are generally more lenient than those in other countries. However, they can be problematic, since prenuptial agreements can't go against the general statutory law regarding the property. In addition, the agreement cannot exclude property that is subject to divorce and it can't conflict with public order. Finally, it cannot be in conflict with moral goods. Thai law is still developing in this area and there is little legal literature on the subject.