When planning a wedding and future together, divorce is the last thing on a couple’s mind. However, with around half of all marriages ending in divorce, people are increasingly opting to draft up a pre-nuptial agreement before getting married or a post-nuptial agreement once married, and for good reason.
Just as people take out car insurance to protect themselves and their vehicles, a nuptial agreement acts as insurance for your future and assets, helping provide financial security during marriage and beyond.
What is a Nuptial Agreement?
A nuptial agreement is a legal contract entered into either before (pre-nuptial) or after marriage (post-nuptial). It outlines how assets, debts and other financial matters will be managed in the event of a divorce. Some agreements also include the managing of assets during the marriage.
In the Cayman Islands, the courts have the ultimate authority over the division of assets, even if a nuptial agreement is in place. This means a signed agreement does not guarantee that the terms will be fully enforced. This is because the courts must ensure the financial needs of both parties, as well as any children, are met. A Cayman Islands judge applies Sections 19 and 21 of the Matrimonial Causes Act (2005 Revision), taking into account each party’s circumstances, assets and obligations.
Ensuring Legal Enforceability
A properly drafted pre- or post-nuptial agreement is more likely to be upheld by the courts.
To help ensure this, both parties should seek independent legal advice experienced in Cayman Islands family law. Early planning is also crucial before the relationship breaks down or changes occur in the marriage.
Family Lawyers in the Cayman Islandskeyboard_arrow_right
If you are considering a pre- or post-nuptial agreement in the Cayman Islands, consult one of our recommended, qualified family law specialists to protect your assets and plan for your future.
