How Assets and Debts are divided between Spouses in UAE

The United Arab Emirates (UAE) has a very straightforward and wonderful legal system. It is a blend of Islamic Sharia principles, and global Civil laws with other global laws. Therefore, Muslims and non-Muslims are living a comfortable life. As far as the family laws are concerned, the expatriates can apply their home country’s laws, too. It is due to recent advancements in, law related to UAE family law. Divorce is a complete emotional rollercoaster.

It is painful everyone. It has legal significance as well as raises emotional and financial concerns as well. The division of assets is done between the spouses when they have planned for separation in the UAE. Assets and Debts have to be decided between them. The Emirati lawyers in Dubai carefully handle the process of assets division. It is crucial to understand the divorce laws and how the property and assets can be distributed once the marriage ends in the UAE.

The UAE family laws are implemented under the Federal Law No. 28 of 2005, known as the Personal Status Law. Under this law, Muslims and non-Muslims are accommodated by legal professionals. There is another law for non-Muslims in the UAE. The Federal Decree-Law No.41 of 2022 guides non-Muslim expatriates about marriage, divorce, custody, inheritance, and division of assets.

The law allows non-Muslims to follow the civil procedures that are aligned with international standards. They have the choice to apply the laws of their home country for divorce if both spouses agree. You can have a legal appointment with our Family Law Experts. Let’s explore this topic more:

• Marital Assets: What Is Considered Shared Property?

The marital property is something that is exchanged during the marriage period. It could be a vehicle, jewellery, or any valuable items that were given to your spouse during the marriage. Sometimes, the couple has shared bank accounts and investments, too. The division of shared property is subject to a case by case because it depends on the parties’ mutual agreement. However, assets that belonged to the spouse before marriage and were later shared with them will originally be given back to the spouse. There are a lot of complications in the distribution of assets when a divorce has to happen. Therefore, the lawyers in Dubai shall be hired in the UAE.

• Division of Debts Between Spouses

The division of debts and liabilities is the same as the assets after divorce. However, the debts include: personal loans taken while getting married, outstanding mortgages or car loans, and credit card debts. However, if there were any business-related loans and ventures, they shall also be taken into account.

The individuals do not have to worry about the division of assets or debts because the UAE courts ensure justice while conducting thorough investigations. They will take a look at the debts to ensure if these debts were taken for personal or family welfare benefits. A jointly taken debt will be resolved through shared responsibility, so one spouse is not burdened with all the debt. Otherwise, if the spouse had taken debt for their personal use, the other spouse would not have to share the burden.

• Prenuptial Agreements: Its Role and Asset Division

The prenuptial agreements are the contracts that are made between the couple before getting married. These agreements have become popular in the UAE as they are helpful if they decide to separate at a later stage of marriage. The prenuptial agreements mention the division of assets after divorce and how debts will be handled if the couple decides to part ways. The prenuptial agreements are guided by the Federal Decree-Law No. 41 of 2022. The law is applied to non-Muslim expatriates.

In this law, the ownership of assets is clarified. However, the joint property is also specified. Additionally, spousal maintenance or financial support is also mentioned. However, these agreements safeguard the business interests and investments of both spouses. The prenuptial agreements cannot be challenged or contradicted by the Sharia law as these agreements are for non-Muslim expatriates. Top lawyers shall be consulted to ensure legal compliance with the federal laws, whether for Muslims or non-Muslims.

• How Courts handle asset Disputes in UAE?

Usually, divorce cases are handled by lawyers through alternative dispute resolution (ADR) methods. These are the techniques to resolve the case in a friendly manner and not involve the court. However, the UAE courts are involved when the settlement is not amicable between the parties. The aspects that would be regarding the following:

• Duration of the Marriage.
• Contribution of both spouses separately.
• Individual financial status of both parties.

Moreover, the aspect of children will also be looked at further to ensure the decision is in their best interests. However, the prenuptial agreements will also be presented to the judge for the verdict. To have justice and fairness in the case, it is important to have proper documentation and legal representation through qualified lawyers.

• Recent Developments in UAE Family Laws

It has been observed that the UAE government is taking new chances to revive the legal system, especially by adding digital footprints and new laws to strengthen the economy. It has also worked on family cases, as the Federal Personal Status Law for Non-Muslims was introduced. It offers non-Muslim expatriates to have better access to legal representation and clarity, especially when they are involved in property division and divorce cases. The UAE has made progress to ensure that every citizen and expatriate feels safe in the region. However, the rights of citizens are thoroughly explained by the lawyers in Dubai, no matter if they are Muslims or non-Muslims.

Finance is an important aspect in the divorce cases. Already divorce is emotionally draining, and so it also becomes costly for the spouse who has a weak financial background. To protect your financial interests, it is advised to keep a record of the shared assets and liabilities while getting divorced. Also, track down all the income sources and expenses.

Moreover, always seek legal help before time to ensure safety in your best interests. Keep all the records transparent during the legal proceedings. Having these secure measures will ensure legal compliance for both parties. They can smoothly transition from divorce.