Clarifying Jurisdiction Between Civil and Personal Status Courts in Spousal Financial Disputes

Dubai Court of Cassation Decision No. 7 of 2025

On 14 July 2025, the General Authority of the Dubai Court of Cassation issued a landmark ruling (Decision No. 7 of 2025), bringing much-needed clarity to the division of jurisdiction between the Personal Status Courts and Civil Courts in the UAE. The ruling establishes a new legal principle on the appropriate forum for hearing financial disputes between spouses, depending on the nature of the claim.

Background

For many years, financial claims arising between spouses, particularly those involving wealth accumulation, business dealings, or contributions during the course of the marriage, fell into a grey area. It was often unclear whether such matters belonged in the Personal Status Court (which governs marriage, divorce, inheritance, and related matters) or the Civil Courts (which hear contractual, commercial, and property disputes). 

The Principle Established

The Dubai Court of Cassation has now confirmed that:

“It is the right of each spouse, if they have participated in the development of the other's wealth, the construction of a residence, or similar actions, to claim their share from the other spouse during the marriage, after its dissolution, or from the heirs upon the spouse's death.”

However, jurisdiction is split based on the type of financial claim:

• Personal Status Courts will have jurisdiction only over matters involving a spouse’s contribution to the construction or development of the marital home. This holds true regardless of the value of the contribution.
• All other financial dealings between spouses including loans, investments, payment of personal debts, issuance of cheques, or contributions to commercial ventures fall outside the scope of the Personal Status Court and must be brought before the Civil Courts. These courts are allocated by administrative and value-based rules as set out in Dubai Courts President Decision No. 16 of 2024.

Implementation Measures

Following this ruling, on 15 July 2025, the President of the Personal Status Court issued Decision No. 26 of 2025, instructing that:

1. No case or application involving claims under Article 51 of the Personal Status Law (including joint property, business investments, traffic fine payments, or company profit recovery) should be registered at the Personal Status Court.
2. All such matters must be redirected to the appropriate civil court.

Practical Implications

This clarification carries significant implications for legal practitioners and individuals involved in personal or financial disputes with their spouse or former spouse:

• Case strategy and forum selection will now be more critical than ever. Misfiling a claim in the wrong court could result in procedural delays or dismissal.
• Legal advice should be sought early to assess the nature of the claim, whether it is tied directly to the marital home or extends to wider financial dealings.
• The decision also paves the way for more efficient judicial proceedings, with courts now empowered to focus on their specialised mandates.

Horizons & Co. Commentary

At Horizons & Co, we welcome this decision as a step toward greater clarity and consistency in the UAE’s judicial system. By drawing a clear boundary between personal and financial claims within marriage, the courts are enhancing procedural efficiency and ensuring that litigants bring claims before the most appropriate forum.

We are available to assist clients in navigating these jurisdictional boundaries and advising on the correct approach to resolving spousal financial disputes.

For further information or legal advice on how this ruling may affect your matter, please contact us.