{"id":1145,"date":"2021-09-12T00:00:00","date_gmt":"2021-09-12T00:00:00","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-asia\/2021\/09\/12\/planning-a-prenup-heres-what-you-need-to-know\/"},"modified":"2025-10-30T10:43:20","modified_gmt":"2025-10-30T14:43:20","slug":"planning-a-prenup-heres-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-asia\/insights\/planning-a-prenup-heres-what-you-need-to-know","title":{"rendered":"Planning a prenup? Here\u2019s what you need to know"},"content":{"rendered":"\n

The idea of a prenuptial agreement may seem like an unromantic start to what should otherwise be a joyful occasion. Yet it can be an important and useful document for marriages involving families with significant assets.<\/p>\n\n\n\n

Since 2000, crude divorce rates have increased <\/a> in most Asia Pacific countries. While no soon-to-be spouse wants to plan for a marriage to end, the fact is divorce happens. Making sure your prenup is right for you, and drawn up correctly, can help protect you and your wealth.<\/p>\n\n\n\n

What is a prenuptial agreement?<\/strong><\/h2>\n\n\n\n

It is a written contract between two people who are planning to get married and addresses the division of assets if a marriage breaks down. If done properly, and discussed early, it can be an effective wealth protection tool for all parties involved.<\/p>\n\n\n\n

A prenup can also be an effective way to avoid court proceedings and minimize the potential financial and emotional toll on a couple if the relationship ends in a divorce.<\/p>\n\n\n\n

\u201cA prenuptial agreement can be very clear in laying down an understanding from both parties [on] what properties are shared between the couple,\u201d points out Vivian Kiang<\/a>, managing director and head of Wealth Planning and Fiduciary Services at RBC Wealth Management in Asia.<\/p>\n\n\n\n

Start the conversation early<\/strong><\/h2>\n\n\n\n

The first step for multi-generation wealth holders is to talk to their children about the expectation that their future partner will be asked to enter into a prenuptial agreement before joining the family.<\/p>\n\n\n\n

When families have that discussion early \u2013 perhaps even before the child has met a partner \u2013 it reduces the emotion attached to the topic. Though the conversation may get emotional, the focus should be on how a prenup can protect the family\u2019s wealth and legacy.<\/p>\n\n\n\n

When it comes to bringing up the topic with a potential spouse, Kiang says the best way to begin the process is to start the conversation even before a future proposal.<\/p>\n\n\n\n

\u201cIt may be difficult, but as a couple, as you get to know each other, that is the time you can fit a prenup [in] as a topic rather than waiting until after the marriage proposal, which can be unromantic,\u201d Kiang points out.<\/p>\n\n\n\n

She suggests normalizing the conversation on prenuptial agreements rather than making them seem like a taboo topic. This will reduce miscommunication and misunderstanding from both sides.<\/p>\n\n\n\n

A possible way to start the discussion is by being transparent and clear, for example, explaining that prenuptial agreements are simply part of the family culture and that all new members are expected to sign one.<\/p>\n\n\n\n

Set up a list to guide the conversation<\/strong><\/h2>\n\n\n\n

As a prenup involves the division of assets between a couple, they should first separately list out all their assets and liabilities, suggests Octavia Liu, a wealth planner at RBC Wealth Management in Asia.<\/p>\n\n\n\n

\u201cPut that list on the table and decide which assets each of you prefers to keep,\u201d Liu says. She suggests checking with a trusted advisor if this list of preferred assets works for you before having the agreement drafted.<\/p>\n\n\n\n

Then, sit down with your soon-to-be spouse and your legal counsel and discuss these things candidly. Which assets will be held separately and which will be treated as marital property, and why?<\/p>\n\n\n\n

Fully disclose each of your assets and debts. Decide how property will be purchased and titled during the marriage. Are you willing to commingle marital funds to purchase assets? How will the joint property be divided in case of divorce? How will household expenses be paid? How will you deal with personal debt incurred before the marriage?<\/p>\n\n\n\n

Prenup planning and cross-border complexities<\/strong><\/h2>\n\n\n\n

It is important to note that the legislation on marriage varies between jurisdictions. Couples in a cross-border marriage with assets in different territories should consider the law of all related jurisdictions when drafting their marriage agreement.<\/p>\n\n\n\n

Below are how a few jurisdictions treat marriage agreements:<\/p>\n\n\n\n