Some would say there is no need but this is far from the reality. Financial disclosure in divorce cases is a crucial aspect of family law in the UAE. This process ensures transparency and fairness when deciding on the division of assets and determination of alimony or child support.
Legal Framework for Financial Disclosure
The UAE’s legal framework mandates that both parties disclose their financial circumstances, including income, assets, and liabilities.
Voluntary Disclosure vs. Court-Ordered Disclosure
Unlike many other jurisdictions for example the UK, the UAE does not mandate a comprehensive disclosure process. It is therefore often encouraged by lawyers that the parties enter into a voluntary disclosure process to work towards a settlement. If the UAE Courts are to order financial disclosure, they may request documents including bank statements, employment contracts, or proof of expenses.
Purpose of Financial Disclosure
This process aims to prevent deceit and ensures that the rights of both spouses, as well as any children involved, are protected. Accurate financial disclosure is vital for the court to make informed decisions regarding the equitable distribution of wealth and support obligations.
Complex Financial Arrangements in the UAE
Multicultural Society and Complex Finances
The UAE’s multicultural society requires a clear understanding of financial responsibilities, especially as many couples may have complex financial arrangements, including investments or properties both within and outside the UAE.
Consequences of Failing to Disclose Financial Information
Failure to provide complete financial disclosure can lead to legal repercussions, including adverse judgments. Ultimately, this requirement not only fosters a fair resolution but also promotes trust in the judicial system, allowing families to move forward post-divorce with clarity and security.
Challenges in Financial Disclosure
There may however be challenges in financial disclosure in the UAE. This could include, issues with enforcement of Foreign Assets, in cases where one spouse has assets abroad, these may not be considered unless voluntarily disclosed or unless the UAE court has jurisdiction and access to records of these assets. Also, as the UAE has high regard for financial privacy, individuals may be reluctant to disclose their full financial picture which would complicate the divorce process especially if assets are concealed.
Guidelines for Financial Disclosure in Abu Dhabi
Resolution No. (8) of 2022 concerning the Marriage and Civil Divorce Procedures in the Emirate of Abu Dhabi provides guidelines for financial disclosures and enables the parties to assess what potential claim can be made to the Court.
Article (17) states that the Court may assign the task of evaluating the financial status of the spouses to an English proficient accounting expert to assess the total financial value to which the wife or husband is entitled after the divorce.
Article (18) outlines the calculation criteria for estimating the financial rights arising from Divorce. Factors taken into consideration may include :
- a percentage of monthly income to include a cash percentage of no less than 25% of the husband’s last monthly income according to the salary certificate multiplied by the number of years of marriage
- a percentage of the husband’s property and wealth to take into consideration the market value or purchase value of the husband’s property
- the joint money between the spouses and the extent of their participation in it.
The court has the discretion to decide the amount according to the circumstances of the divorce. In line with the expert report, the court shall ensure a decent living for the divorced woman and children without incurring financial costs beyond the father’s financial capabilities.
Federal Law on Civil Personal Status
Federal Decree-Law No. (41) of 2022 On the Civil Personal Status applies to all other Emirates including Dubai. Article 9 (3) allows the Court to be updated with the financial situation of each spouse in accordance with a report prepared by an accounting expert who is delegated by the Court to assess the economic position of each spouse.
Seeking Legal Advice in Divorce Cases
If you are embarking on a Divorce through the UAE Courts and have a potential financial claim against your spouse, specialist legal advice should be sought. Our UAE Family lawyers can advise and assess your case so as to provide you with an understanding of your rights and obligations when divorcing in the UAE.
Head of Family Law / Senior Consultant