Wednesday, July 8, 2009

Prenuptial Agreements in Thailand

What to know about how to make a Thai prenup

A prenuptial agreement is a document, a legal contract, that spouses sign before entering a marriage. It's also called an antenuptial or premarital agreement. The opposite is a postnuptial contract, which is a contract made between husband and wife after their marriage.
Prenuptial agreements provide a financial plan which can be managed through the course of marriage or upon the break-up of the marriage (example: divorce). For people with substantial assets and properties and wish to control the division of the assets upon divorce, this legal document is very useful.

Under Thai law, prenuptial and a postnuptial agreements are 2 types of agreements that can be made in relation of the assets between a husband and a wife.

A Thai prenuptial agreement is an agreement concerning of the assets between a husband and a wife made and governed by Thai law only. Thai Law is limiting prenuptial agreements and you must follow Thai rules in order to have a valid contract. A valid and enforceable Thai prenuptial agreement requires by Law that:

-It needs to be in writing on the same date of marriage registration, or;
-It has to be a written agreement signed by both parties.
-Two witnesses are required.

The agreement should be attached with the marriage certificate where the marriage is registered.

A "Buddha marriage" is not considered a legal marriage in Thailand. A legal marriage is a public act, it is official and registered at a local office. Because a marriage is a public act, the reason why we must register prenuptial agreements in Thailand is to announce to the third parties about the how the relationship of the spouses will be governed.

A Thai prenuptial agreement is concerning only the assets management of a husband and a wife during their marriage. The prenuptial agreement will be considered void, if; for example:
The prenuptial agreement specified that if a husband goes out with other lady, a wife can file a divorce. This clause is considered void because it is an agreement contrary to public order or good morals according to section 1465 paragraph 2 and section 150 of the Thai Commercial and
Civil Code.

A male who used to pay alimony to his mother every month before marriage. If the prenuptial agreement specified that all his salary will be given to his wife even his mother’s alimony. It is considered that void because it is an agreement contrary to public or good morals.

In addition, if the clause specified that it is governed by foreign law, it is considered void. In contrary, it specified that in case that a husband and a wife live separately, all assets acquired during separation are considered private property. Even though this clause is from the provisions of California State, it shall be valid.

The agreement is unenforceable if specified that the debt of a couple; for example, the education’s debt will be personal debt of a husband or the debt arising from business of both will be personal debt of wife.The altered or cancelled of prenuptial agreement must apply to the court for authorization in order to protect their interest, influences over the other party or force to alter or cancel the prenuptial agreement.In case of a minor wishing to get married and make a prenuptial agreement, a minor must get consent from parents, adoptive parent or legal representative of marriage and make an agreement. (Majority is 20 years-old in Thailand).

If you need a Law firm to draft you a prenuptial agreement, you can ask for a quote by sending an email to Isaan Lawyers.

Related Law

Commercial and Civil Code of Thailand:

Section 1465 Where the husband and wife have not, previous to their marriage, concluded a special agreement concerning their properties, the relations between them as regards their properties shall be governed by the provisions of this chapter.

Section 1466 The prenuptial agreement is void if not entered with the Marriage Register at the time of marriage registration terms of the prenuptial; or if not made in writing and signed by both parties and by at least two witnesses and entered with the Marriage Register at the time of marriage registration stating that the prenuptial is there to annexed.

Section 1467 After marriage the prenuptial agreement cannot be altered except by authorization of the court. When there is final order of the court to effect the alteration of cancellation of the prenuptial agreement, the court shall notify the Marriage Registrar of the matter in order to have it entered with the Marriage Register.

Section 1468 Clauses in the prenuptial agreement shall have no effect as regards the rights of third persons acting in good faith irrespective of whether they be altered or cancelled by the order of the Court.


A Conflict of Laws Act:
Section 22 As regards the property of husband and wife, if there is no ante-nuptial agreement, the law of nationality shall govern. If the husband and the wife have different nationalities, the property of husband and wife shall be governed by the law of nationality of the husband. However, as regards immovable property, the law of the place where such property is situated shall govern.

Section 23 The effects of marriage as governed by the two foregoing sections shall not be affected if, after marriage, either or both spouses acquire a nationality different from the nationality possessed or acquired at the time of marriage.

Section 24 As regards the property of husband and wife, if an ante-nuptial agreement is made, the capacity for making such agreement shall be governed by the law of nationality of each party.

Section 25 If the parties have the same nationality, the essential elements and effects of an ante-nuptial agreement shall be governed by the law of common nationality of the parties. If they have different nationalities, such essential elements and effects shall be governed by the law under which the parties intended or may be presumed to have intended to submit themselves; in the absence of such intention, the law of the first matrimonial domicile shall govern. However, as regards immovable property, the law of the place where such property is situated shall govern.

You will find more information about prenuptial agreements in Thailand at http://www.thailawonline.com/en/thailand/prenuptial-agreements

Saturday, June 6, 2009

Divorcing in Thailand

These days, about fifty pourcent of marriages ends with a divorce. Let's have a look about divorce in Thailand.

Under Thai law, there are 3 reasons to terminate of marriage. According to section 1501 of the Commercial and Civil Code of Thailand (CCCT), they are;
-Death
-Divorce
-Cancellation of the marriage by the Court

We all know why death ends a divorce. A cancellation by the Court is rare. It normally has a retroactive effect, meaning the same as if the marriage never happened. In these rare cases, one spouse can, for example, plead that he/she wouldn’t have married this person if she would have known certain facts, or that the marriage is void because of the way it was done (ex: someone under the legal age).

This article wants to focus on the other way to terminate a marriage under Thai Law: with a divorce.

B) DIVORCE First, we must say that under Thai law, there are no differences between foreigners and Thais. They are treated equally. But for certain aspects of property, or because they might need to translate some documents, it can be a little bit more complicated. Again, to divorce in Thailand, your marriage must be recognized under Thai Laws. In Thailand, there are 2 ways to divorce:

1. AN UNCONTESTED DIVORCE IN THAILAND (making an agreement between spouses)
If the husband and wife wish to terminate their marriage, Thai law allow couples to divorce without any reason because a marriage is civil contract. Therefore, by consent, the spouses can modify and cancel their contract. If both parties agree to terminate a marriage (or a contract), they may do so but will have to follow the procedure. Many civil law countries accept these uncontested divorces. On the opposite, Common law countries, such as England, USA or Australia, do not accept an uncontested divorce and normally need to request a court order.

The procedure Divorce effect by mutual consent must be made in writing and certified by the signature of two witnesses according to section 1514 of Civil and Commercial Code. A divorce agreement can be made at the district office or in a law firm. There is no format required about this agreement but the important thing is both parties understand and agree to make a divorce. This is why a bilingual agreement can be important for a Thai-Farang couple. Under Thai law, you shoud have at least 2 witnesses to sign the divorce agreement. Apparently there is no mention that the 2 witnesses have to be present at the same time but witnesses have to acknowledge who and what they are signing for (s.417/2494 Mrs Pong Pensara, plaintiff and Mr Nueng Satarat, Defendants). Although there are some witnesses acknowledge about divorce agreement but it’s only 1 witness signed for, it shall be deemed that divorce agreement is not completed (Supreme Court 1639/2522, Dr Wisut Tansirimongkol vs Oranut Tansirimongkol). Eventhough both parties has made a divorce agreement with 2 witnesses, it will not take effect if it is not register it at district office (Supreme Court 215/2519 Mr Suthep Pomasa vs Mrs Rien Pomasa)

The effects Like we saw, a divorce by mutual consent shall be registered. Upon consent and signing their divorce agreement with 2 witnesses, a husband and a wife need to register their divorce at district office in order to be legal according to section 1515 of Civil and Commercial Code.In case that both parties has signed their divorce agreement but one party doesn’t register his/her divorce, another party shall be entitle to enforce it by a court order (Supreme Court 1291/2500 Mrs Hieng Sae-ton vs Mr Hew Sae-jiew)

What should be included in a divorce agreement If both parties registered their marriage at district office, both parties needs to agree over the child custody, the separation of the marital assets and any other thing they might want to include in their agreement (ex: Alimony). The officer at the registration office will note the divorce agreement concerning the financial aspects and the situation of the child.

2. A CONTESTED DIVORCE IN THAILAND (going to the Court)
If both parties can’t agree on their divorce, one party needs to file a petition to the court. But to do so, you must have a cause, or what is normally called "a ground". The burden of proof will be on the person requesting the divorce and she/he will have to appear in Court and prove his/her motivation for asking a divorce. In Thailand, there are several grounds for divorce. For example, they include:

-The husband has given maintenance to or honored such other woman as his wife (Section 1516 (1) CCCT)
-The wife has committed adultery (Section 1516 (1) CCCT)
-One spouse is guilty of misconduct (criminal or otherwise) (Section 1516 (2)CCCT)
-One spouse has caused serious harm or torture physically or mentally the other, or has seriously insulted the other or his or her descendants (Section 1516 (3) CCCT)
-One spouse has deserted the other for more than one year (Section 1615 (4) CCCT)
-One spouse has been sentenced by a final judgment of the Court and has been imprisoned for more than one year if the offence committed is done without any participation, consent or in the knowledge of the other, and the cohabitation as husband and wife will cause the other party to sustain excessive injury or trouble (Section 1516 (4/1) CCCT)
-The husband and wife voluntarily live separately for more than 3 years (Section 1516 (4/2)
-One spouse has been adjudged to have disappeared, or has left the domicile for more than 3 years and it’s uncertain if she or he is alive or dead (Section 1516 (5) CCCT)
-Lack of marital support (Section 1516 (6) CCCT)
-One spouse has been an insane person for more than 3 years continuously and such insanity is hardly curable (Section 1516 (7) CCCT) · One spouse has broken the bond of good behavior (Section 1516 (8) CCCT)
-One spouse is suffering from a communicable and dangerous desease which is incurable and may cause injury to the other (Section 1516 (9) CCCT)
-One spouse has a physical disability so as to be unable to permanently cohabitate as husband and wife. (Section 1516 (10) CCCT)

The procedure You must file a petition to the Court. If you claim for some money to separate the common asset, a deposit must be made to the Court. It’s normally 2% of the value claimed. For example, if you bought a house while being married, or a car, and this is under “common property” (Sin Somros) for a value of 2 million baht, you are entitled to claim 1 million baht. So, you will have to pay 20,000 baht as deposit to the Court. If you win your case, the judge can order the other party to pay you back this deposit. If you have children together, you will probably go at the juvenile section first. They will make a kind report that will be used for the Court. Then, in Court, for the first appearances, it’s normally a negotiation session. If parties can’t agree, a trial will be ordered. If the defendant doesn’t show, the only evidence examined will be the one of the plaintiff. If you don’t know where a party lives or is, a divorce ex parte can also be done under certain circumstances and after an announcement has been made. For the trial, the plaintiff must be present and has the burden of proof. Depending where the proceedings are, a divorce can be obtained in Court between 3 months to 1 year. This excludes appeals and special circumstances. Again, this is an approximation. Divorces are done in the family Court division.

Divorcing abroad of a Thai marriage

The Conflict of Law Act B.E.year 2481 enacts the following clauses about divorces:
Section 26 “A divorce by mutual consent shall be valid if it is permitted by the law of nationality of husband and wife”
Section 27 “A divorce cannot be granted by the Siamese Court unless it is permitted by the law of nationality of husband and wife.” No matter where a mutual consent take place, it is difficult to the other person will know.
The Supreme Court in decision s.5887/2533, whereas one party is Thai and another party is Indian stated that “A mutual consent divorce between plaintiff and defendant shall be valid between two of them only. It cannot be set up against their persons by acting in good faith except the parties who registered their divorce according to section 1515 of Civil and Commercial Code”
The spouse who register their marriage under foreign law, can divorce by court order in Thailand. If one party sees that there is one of the grounds for divorce according to section 1516 of the Commercial and Civil Code.The spouse has to be present at the embassy of spouse’s domicile. The Spouse declares his/her intention to divorce by written document concerning about marital property and child custody. Both parties have to sign it the presence of the registrar and 2 witnesses. In case that one party cannot be present at the same time, they can agree which party should submit the divorce first and another party will submit later. The divorce made in abroad can be registered at a district office in Thailand.
First you need to certify paper from Ministry of Foreign Affair of divorce country and translate into Thai and certify by Thai embassy in aboard. In the case that someone is dispute over divorce in aboard, the court will step in either certify or refuse of divorce.

The separation of asset in case of divorce in Thailand

Upon termination of the marriage, both husband and wife has to divide properties which consist of private property (called "Sin Suan Tua" in Thai) and common property (called "Sin Somros" in Thai).

Section 1470 Properties of husband and wife except in so far as they are set aside as Sin Suan Tua, are Sin Somros.

Section 1471 Sin Suan Tua consists of:(1) property belonging to either spouse before marriage;(2) property for personal use, dress or ornament suitable for station in life, or tools necessary for carrying on the profession of either spouse;(3) property acquired by either spouse during marriage through a will or gift;(4) Khongman

Section 1472 As regards the Sin Suan Tua, if it has been exchanged to other property, other property has been bought or money has been acquired from selling it, such other property or money, such other property or money shall be Sin Suan Tua. Where the Sin Suan Tua has been totally or partly destroyed but replaced by other property or money, such other property or money shall be Sin Suan Tua.

Section 1474 Sin Somros consists of(1) property acquired during marriage;(2) property acquired by either spouse during marriage through a will or gift made in writing if it is declared by such will or document of gift to be Sin Somros;(3) fruits of Sin Suan Tua.In case of doubt as to whether a property is Sin Somros or not it shall be presumed to be Sin Somros. The rule,regarding division of property, are Sin Suan Tua remains the property of the owner and Sin Somros shall divide equally.

Section 1533 Upon divorce, the Sin Somros shall be divided equally between man and woman. In some cases it might not divide equally if one spouse disposed Sin Somros as following;
For his or her exclusive beniefit. Example; One spouse sells Sin Somros and retain all money by himself or herself or use it in own benefit.

One spouse has made disposal with an intention to cause injury to the other. Example; One spouse sells Sin Somros to his or her own relative for very low price.

One spouse has made disposal without the consent of the other. Example; Sin Somros is the land namely sole husband and later husband sells it without consent of wife.

One spouse has willfully destroyed it. Example; Wife is angry with husband and then sell her Sin Somros.

In order to divide such a Sin Somros, it shall be deemed that all properties are in full and complete. If the share of the Sin SOmros that the other will receive is not complete to what he or she should have received, the party at fault is required to make up for the arrears from his or her share of the Sin Somros or his or her Sin Suan Tua. The calculation of period of marriage, regarding to dividen property, are as follow;

If it’s uncontested divorce, it shall divide for what assets they own while registering divorce.
In case of divorce by judgment of the Court, it shall divide for what assets they own on filing petition date.

Section 1532 After divorce, the property of the husband and wife shall be subject to liquidation.
But as between the spouses,

(a) in case of divorce by mutual consent, the liquidation shall apply to the property of the husband and wife as it was on the date of registration of divorce;
(b) in case of divorce by judgment, the liquidation shall apply to the property of the husband and wife as it was on the day when the action for divorce was entered in Court.
Marriage with a foreigner. In case that husband and wife have different nationalities, the assets of wife shall be governed by the law of the husband’s nationality except property according to Conflict of Law ,section 22 designate that if there is no prenuptial agreement, the relationship between husband and wife shall be governed by nationality law.If husband and wife have different nationalities, all common property shall governed by the law of husband’s nationality.However, the immovable property shall comply with the law where the property is situated; such as house and land. For example; Thai wife has a dispute over the land with a foreign husband, Thai law shall govern. In case of termination of marriage by divorce, Thai law designates that assets shall be divided equally.

You will find more information about how to divorce in Thailand at http://www.thailawonline.com/en/thailand/divorce-in-thailand