Unfortunately, not every marriage is for life, and sooner or later, some face the complex untangling of assets known as divorce. When both halves of the couple are of two different nationalities--as one in four in Luxembourg are, per Statec--it is important to know which jurisdiction will apply.
“For people whose last common residence is Luxembourg, the Luxembourg law applies to their divorce,” said Erpelding.
However, when it comes to the liquidation of matrimonial assets, the EU law applicable is that of the country where the spouses shared their first common residence--which, for expat couples in the grand duchy, could easily be yet another country.
The jurisdiction of the divorce matters. “Different countries have different approaches to how assets are combined in a marriage,” said Erpelding. “A ‘communauté de biens’ [where all assets are made common for the life of the marriage] or a ‘séparation de biens’ [where everything remains separate] could apply. It is important your jurisdiction supports your choices.”
Fortunately, a prenuptial agreement can protect cross-border divorces. “Provided you have a link to a particular jurisdiction, you can state it as your preferred divorce jurisdiction in the prenup.”
According to Erpelding, prenups are becoming more and more common in Luxembourg. “They don’t require a lawyer, only a notary.” It is also never too late to get a prenup. “Before launching a request for divorce, the couple can ask a notary to choose the jurisdiction they wish to apply.”