Who does a prenuptial agreement protect

Marriage is a joyous occasion, but many people overlook the issue of assets that may arise later, especially if the relationship doesn’t go as expected.

What we can do to protect our personal assets and those of our spouse is to establish a Prenuptial Agreement.

However, many people may not fully understand how this agreement can protect assets and how it works.

Today, let’s get to know prenuptial agreements.

Table of Content

• The importance of prenuptial agreements for protecting assets
• Drafting a Prenuptial Agreement Correctly
• Assets Covered in a Prenuptial Agreement
• Rights and Duties of Spouses under a Prenuptial Agreement
• Laws Related to Prenuptial Agreements in Thailand
• Prenuptial Agreements on Assets: Uncommon in Thailand
• summarize

The importance of prenuptial agreements for protecting assets

Prenuptial agreements are especially important and widely accepted abroad.

Therefore, anyone involved with a foreign spouse should be aware of them to avoid being at a disadvantage.

A prenuptial agreement is a legal document that both parties agree upon before marriage.

Its purpose is to define each party’s assets and specify how assets owned before marriage will be treated as separate property under certain conditions.

A prenuptial agreement is crucial for protecting the assets each spouse has before marriage, preventing them from being considered marital property to be divided in the event of a divorce.

It can even “exclude the creation of marital property altogether after marriage” (which is important to know).

A simple example is if you own a house or other assets before marriage. A prenuptial agreement will specify that this house is your separate property and will not be divided in the event of a divorce.

This creates clarity and reduces potential issues that may arise later.

Drafting a Prenuptial Agreement Correctly

How to draft a prenuptial agreement legally Many people mistakenly try to create a prenuptial agreement regarding assets “after marriage” which is incorrect.

In Thailand, a prenuptial agreement must be made before the marriage to be legally valid.

To properly draft a prenuptial agreement, legal procedures must be followed. Both parties must freely consent without any coercion or pressure.

The agreement must be documented in writing and registered with the appropriate authority at the marriage registration office.

This registration is a crucial step to ensure the prenuptial agreement is legally enforceable.

In addition, drafting a prenuptial agreement should involve consulting with a lawyer who specializes in this area to ensure that the agreement complies with the law and accurately covers the assets you wish to protect.

Assets Covered in a Prenuptial Agreement

A prenuptial agreement can cover both personal assets  and  marital assets that the couple wishes to manage according to their preferences.

Examples of assets that can be included are

• Personal assets
  such as a house, car, bank accounts, and stocks.
• Marital assets
  or assets acquired during the marriage, such as income and jointly purchased real estate.

The prenuptial agreement can specify the ownership of these assets and outline how they will be managed in the event of a divorce.

Having clear terms in place can significantly reduce potential conflicts in the future.

According to Thai law, after marriage, all assets acquired during the marriage are considered marital property.

For example, if the husband earns 100,000 baht and the wife earns 15,000 baht, the total marital property would be 115,000 baht, which is then divided equally between both parties.

Rights and Duties of Spouses under a Prenuptial Agreement

A prenuptial agreement specifies the rights and duties of spouses regarding property.

It can determine which spouse has rights to certain types of property or who is responsible for debts incurred before or during the marriage.

Additionally, it may include provisions on each spouse’s role in managing assets and making joint financial decisions.

In the absence of a prenuptial agreement, Thai law considers all assets acquired during the marriage as marital property, which must be divided between both spouses in the event of a divorce.

Having a prenuptial agreement helps prevent personal assets from being merged with marital property.

Laws Related to Prenuptial Agreements in Thailand

In Thailand, prenuptial agreements are governed by Section 1465 of the Civil and Commercial Code

which states that spouses can make agreements regarding the management of assets before marriage.

This agreement will only be effective if it is attached to the marriage registration. Simply put, it means that the agreement must be registered along with the marriage certificate.

Creating a prenuptial agreement in Thailand is not a complicated process, but it must be done with care and attention.

This is because the agreement regarding assets will impact the future of both spouses.

Prenuptial Agreements on Assets: Uncommon in Thailand

Yes, that’s correct. Compared to other countries, prenuptial agreements are indeed less common in Thailand.

Cultural norms and values play a significant role, as there’s often an expectation for women to invest their lives in managing the household and raising children, potentially giving up their careers and financial independence.

In such cases, the idea of asset separation might be seen as disadvantageous for those who put their career on hold for family responsibilities.

However, despite its lack of popularity, my own experience over the past three years shows a significant increase in prenuptial agreements concerning assets, involving both Thai-Thai and Thai-foreign couples.

summarize

Prenuptial agreements are crucial tools for protecting the personal assets of both parties, including those owned before and acquired after marriage.

Creating such an agreement not only clarifies asset division but also helps reduce potential conflicts in the future.

It is essential to consult with a specialized lawyer to ensure that the prenuptial agreement is legally valid and covers all necessary aspects.