Division of marital property

If you do not sign a prenuptial (or postnuptial) agreement, you are regarded as having agreed to the formation of a ‘community of property’. Under this system, you and your partner’s assets and debts before the marriage are deemed to merge when you marry. You may depart from this statutory arrangement by making alternative arrangements in the form of a prenuptial or postnuptial agreement.

The legal effects (under property law) of the financial transactions performed by the spouses do not really become visible until their marriage is terminated. Complications may arise if a spouse is the owner-manager of his or her own business, in which case accurate, expert advice in separating business from marital or personal assets – taking the tax implications into account – is of crucial importance.

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