The agreement on premarital property is a binding agreement signed by two parties before a marriage takes place. It is generally a written agreement with the purpose of how property and debt will be split in case of a divorce, as well as the rights and responsibilities both parties are required to uphold. If there is not a prenuptial agreement, property and debt division will fall underneath the default system. In China, that means premarital property will go to its respective owner and property accrued within the marriage will be shared by both spouses. The law also allows the couple to make an agreement based on the nature of the property acquired during the marriage that says certain types of property gains will go to the respective owner even upon divorce. Proposing a prenup involving foreign spouses include the following:
1. Agreeing on the scope of the agreement
One of the most important purposes of a prenup is to clarify the extent of the premarital property. The property belonging to each party should be taken into consideration when defining the agreement. If these perameters are not clearly stated, it can be difficult to judge what property belongs to whom and if it was premarital or accrued during the marriage.
2. Ownership of property after the marriage
Both parties should clearly state in the agreement if the property will be jointly owned or separately, or what is joint and what is not. Inherited property, donated income, or company stocks can also be taken into account as property gained during marriage.
3. Sharing of claims and debts
Both parties can agree what the rights and obligations of each will be regarding debts accrued during marriage. In general, it is agreed that debts taken on before marriage will be the responsibility of the respective party, and marriage produced debts will be shared by both parties upon divorce.