A high net worth divorce in the UAE is subject to the law applicable to the spouses. There is no automatic rule for dividing assets equally.
Managing these cases starts with determining the competent court and examining registered properties. It also involves analyzing financial records and cross-border assets.
Which Law and Court Apply to a High Net Worth Divorce in the UAE?
Determining the competent court and the applicable law depends on a set of core criteria. The most prominent are the spouses’ religion, nationality and residence, as well as any agreements concluded between them.
These criteria allow UAE legislation to accommodate different nationalities and cultures. They also provide a precise legal framework for each case.
The 2024 Personal Status Law
Federal Decree-Law No. 41 of 2024 applies to UAE citizens where either spouse is Muslim. It may also apply to non-Muslim UAE citizens. This is the case unless provisions specific to their religion or sect apply, or they agree to another law permitted in the UAE.
For non-citizens, Article 1 allows a party to request the application of their national law or another agreed law, where UAE legislation permits. This does not mean that a foreign law applies automatically to every claim.
The Civil Personal Status System
The civil personal status system, Federal Decree-Law No. 41 of 2022, applies to non-Muslim UAE citizens and non-Muslim foreigners residing in the State. This is subject to the choices permitted under Article 1, including any applicable national law or another permitted UAE personal status law.
Its provisions allow either spouse to request divorce by unilateral will without the need to prove harm. The court must also have jurisdiction over the case.
Abu Dhabi Law No. 14 of 2021
In the Emirate of Abu Dhabi, Law No. 14 of 2021 provides a separate civil framework for marriages and divorce falling within its scope. Its application must be checked in each case. It should not be assumed to govern every non-Muslim couple in the Emirate.
Foreign Laws and Conflict of Laws
A party may request the application of their national law where permitted. A party may also present a prior financial agreement for the court to examine.
One court is not assumed to have jurisdiction over all global assets. A precise legal assessment is needed to determine territorial and subject-matter jurisdiction for assets inside and outside the State. This helps ensure proper and effective enforcement of judgments.
Mixed-nationality couples face additional questions, which we cover in our guide to divorce between two different nationalities in the UAE.
How Are Property, Businesses and Investments Treated on Divorce?
No Automatic 50/50 Division
UAE courts do not automatically divide marital assets 50/50. Where Federal Decree-Law No. 41 of 2024 applies, Article 51 adopts the principle of independent financial liability of the spouses.
This means there is no automatic equal sharing of property or funds between them. However, Article 51/2 allows a spouse who contributed to developing property or building a house to claim their proven share.
Courts may examine registered title deeds, company contracts, and evidence of financial contributions when assessing such claims. The applicable law and any valid agreement must also be considered.
We explain these claims further in our article on asset division during divorce in the UAE.
Financial Claims Under the Civil System
Under the civil system applied to non-Muslims, Article 9 of Federal Decree-Law No. 41 of 2022 regulates post-divorce alimony and other financial claims.
Articles 6 and 7 of Cabinet Decision No. 122 of 2023 allow the court to consider each party’s financial position. When necessary, the court may appoint an accounting expert.
Business Shares
Business shares are not automatically divided because of divorce. The court looks at ownership records and any proven financial claims.
Where the civil personal status law applies, an accounting expert may assess the parties’ financial position under Article 7 of Cabinet Decision No. 122 of 2023 when necessary.
The expert’s report may help assess wealth, income and contributions. It does not automatically divide company shares or other property between the spouses.
Spousal Maintenance Under the Civil Law
Under Article 9 of Federal Decree-Law No. 41 of 2022 and Article 6 of Cabinet Decision No. 122 of 2023, the court considers:
- The duration of the marriage.
- The wife’s age.
- The financial position of both parties.
- Other relevant circumstances.
An accounting expert may be appointed under Article 7 when necessary. These rules concern maintenance and financial claims, not automatic division of all assets.
What Documents Are Needed for Financial Claims and Settlements?
Accurate financial claims depend on a set of basic documents that help prove rights and obligations. These include:
- Bank statements: account statements covering the period relevant to the financial claim.
- Ownership documents: official title deeds for properties in the UAE and abroad, in addition to relevant commercial registers.
- Company records: company incorporation contracts, share registers and relevant financial statements showing ownership and contributions.
- Financial agreements: original marriage contracts or any prior financial agreements concluded by the parties.
- Valuation reports: available valuation or accounting reports relating to companies and other financial assets, where relevant.
Our checklist on what you should know before filing for divorce in the UAE covers wider preparation.
Are Overseas Assets and Family Businesses Covered by a UAE Divorce Order?
Jurisdiction of the UAE Courts
UAE courts may hear divorce-related financial claims when the legal conditions for jurisdiction are met. Article 3 of Federal Decree-Law No. 41 of 2024 sets out personal status jurisdiction under that Law.
In civil proceedings, Federal Decree-Law No. 42 of 2022 applies:
- Article 19 covers claims against persons resident or domiciled in the State.
- Article 20 covers specified cases against foreigners living abroad.
- Article 19 expressly excludes actions concerning rights in real estate located abroad.
Enforcement Outside the UAE
The matter differs at the enforcement stage outside the UAE. A UAE divorce judgment does not automatically transfer ownership of real estate abroad. It does not change the ownership records of foreign companies either.
Recognition and enforcement depend on the laws of the relevant country and any applicable treaty. They may require separate court or registration procedures there.
Article 222 of Federal Decree-Law No. 42 of 2022, the UAE Civil Procedure Law, deals with enforcement of foreign judgments inside the UAE. It does not deal with enforcement of UAE judgments abroad.
For advice on a specific financial settlement, contact the Leaders Advocates team.
Official Legal Sources
- Federal Decree-Law No. 41 of 2024 on the Issuance of the Personal Status Law, Articles 1, 3 and 51.
- Federal Decree-Law No. 41 of 2022 on Civil Personal Status, Articles 1 and 9.
- Cabinet Resolution No. 122 of 2023 on the Executive Regulations of Federal Decree-Law No. 41 of 2022, Articles 6 and 7.
- Federal Decree-Law No. 42 of 2022 Promulgating the Civil Procedure Code, Articles 19, 20 and 222.
