The UAE government has made changes to personal and family law which take effect immediately.
According to local newspaper The National, on 7 November, the government unveiled the changes which will see quite a radical shake up from the previous regime.
Under the newly introduced laws, the traditional separation and division of assets during a divorce will be scrapped, especially for expats.
If a foreign couple married in their home country but then decide to divorce in the UAE, the laws of their country of origin will apply.
Previously, they would have needed to petition for their case to not fall under UAE law.
From now on, UAE courts can intervene if the two parties do not manage to reach an agreement, and UAE law will only be applied to assets situated in the country.
‘Biggest overhaul’
The legislative changes apply to inheritance as well.
Up until now, families saw the assets of their loved one divided according to Sharia principles, which created difficulties for expats as it often resulted in an unequal division between men and women.
But now, the splitting of deceased person’s assets will be dictated by their citizenship, meaning that the inheritance law of their country of origin applies in the absence of a Will.
The only exception to the measure is if there are properties purchased in the UAE, as they will need to be managed according to UAE law.
Sophia Hurst, barrister at Serle Court Chambers, told International Adviser: “This is one of the biggest overhauls of UAE private law in recent years and is clearly aimed at making the region more attractive to foreign direct investment and expat workers from around the world, not just for their working life but beyond.”
‘Significant progress’
She believes that, despite the changes, making a Will is always the best option, “particularly for expatriates living outside their country of origin who may have assets in several jurisdictions”.
Hurts added: “A Will is the simplest way for a person to ensure their property is dealt within in accordance with their wishes. The Dubai International Financial Centre (DIFC) has permitted non-Muslims to register wills since 2015.
“Similar provisions have applied in Abu Dhabi since 2017. The DIFC Wills Service was one of the first in the world to adapt to video-conferencing registration to cater for the covid-19 crisis and is currently being enhanced in line with Dubai Tourism’s ‘Retire in Dubai’ programme to make the Emirate a more secure and attractive place to retire.
“For expats who have not made a Will, these changes to the law mark significant progress. Prior to the overhaul, the likely scenario when a person died in UAE was that their assets would be divided under UAE law, including principles of Sharia. This may well have run contrary to the deceased person’s beliefs and expectations.
“The changes to inheritance laws mean that, for non-Emiratis, the laws of that person’s country of origin will be used in an intestacy situation. This is likely to simplify the process for family members.
“The exception to this is for real property situated within the UAE, where UAE law will apply. This exception is not unusual, as most legal systems dealing with property abroad would apply the laws of the place where the property is situated.”
