Author: control_dal

The benefits are twofold: Citizens and small businesses get quicker resolutions, while the courts gain breathing space. The result is less bureaucracy, fewer delays, and greater trust in the justice system

Veronique Dalli is a lawyer

The recent amendments to the Small Claims Tribunal Act may not draw much public attention, but mark a practical step forward in improving Malta’s justice system.

The Small Claims Tribunal is designed to handle straightforward disputes quickly and affordably, without the need for legal representation. It covers issues such as unpaid invoices, unfinished works, or minor property damages involving amounts up to €5,000. The new law doubles this limit to €10,000, a seemingly simple change with major implications for citizens, businesses, and the courts.

Currently, nearly half of civil cases filed before the Magistrates’ Courts involve claims between €5,000 and €10,000. Shifting these to the tribunal, will free magistrates to focus on complex civil and criminal cases, while giving the public a faster, simpler, and affordable route to justice.

This builds on recent progress. Appeals that once took four or five years are now being decided within a year, a major improvement. The latest reform continues this momentum by halving the load on magistrates, who often juggle minor disputes with serious criminal proceedings, sometimes on the same day. Small cases take up the same courtrooms, magistrates, and administrative resources as major trials, inevitably creating backlogs. Allowing the tribunal to handle claims up to €10,000, introduces a more rational distribution of judicial work.

Beyond expanding its jurisdiction, the reform also modernises the tribunal’s procedures. It eliminates the need for physical hearings, allowing cases to be conducted fully online when possible. This saves time and resources, reduces courtroom congestion, and spares citizens the inconvenience of taking leave from work or searching for parking. When hearings are required, it is encouraged to be held via videoconference, which is another small yet an impactful efficiency.

These adjustments make justice faster, less intimidating, and more affordable. Court fees before the Magistrates’ Courts can deter people from pursuing legitimate claims, but the tribunal’s minimal costs make justice accessible to all. Disputes once abandoned for financial reasons can now be resolved through this streamlined process.

The benefits are twofold: Citizens and small businesses get quicker resolutions, while the courts gain breathing space. The result is less bureaucracy, fewer delays, and greater trust in the justice system.

Malta’s reform also aligns with European best practices. Countries such as the Netherlands and Luxembourg assign low-value civil disputes to specialised tribunals with thresholds even higher than Malta’s new €10,000 limit. The chief justice has already expressed support for the approach being taken by the justice minister, recognising it as part of a broader strategy focused on specialisation and efficiency.

While these amendments are not revolutionary, they represent a meaningful and well-targeted reform. The biggest improvements in governance do not come from rewriting constitutions, but from fixing small things effectively. This reform does exactly.

Prenuptial agreements, or “prenups”, are often associated with celebrity marriages or high-net-worth individuals abroad. Yet as lawyer Dean Hili tells MaltaCEOs.mt, Malta has recognised similar legal arrangements for over a century – long before the term “prenup” entered popular vocabulary.

“‘Prenups’ are not a new concept under Maltese law,” he explains. “They have been around, albeit under a different nomenclature.”

Under Maltese law, there are three main matrimonial property regimes that regulate how property is owned between spouses: The Community of Acquests, the Separation of Estates, and the Community of Residue under Separate Administration (CORSA).

The Community of Acquests remains the default regime, where “all property acquired by either spouse after the marriage date (through work, purchase, savings, investments, etc.) becomes joint property of both spouses.”

However, as Dr Hili notes, the option to separate estates – effectively what a prenup achieves – “has been available since at least the late 19th century,” tracing its origins back to classical Roman law and later the Napoleonic Code.

Introduced in 1993, CORSA serves as a hybrid model. “Spouses administer their own acquisitions separately during marriage, but on dissolution (death, separation, annulment, divorce) the ‘residue’ of what each acquired is calculated, and then shared according to law,” he says.

Protecting business assets

For entrepreneurs, investors, and business owners, the ability to protect business interests is a key motivation for entering into such agreements.

“As for benefits prenups offer in case of business owners, there are many,” Dr Hili says. “Business assets including shares, goodwill, IP, and capital, remain your exclusive property. Your spouse is not liable for your business debts or guarantees. The contract can also clarify how dividends, retained earnings, or profits are treated.”

In essence, a prenup allows a business owner to ring-fence their commercial interests from personal relationships – an important consideration for anyone with significant investments or shareholders.

Common concerns from clients

When it comes to the practical side, Dr Hili says that business owners typically seek “certainty, insulation, and autonomy.”

He explains that “it is not a one-size-fits-all kind of situation.” Some clients want to ensure their “business itself including shares, trademarks, and goodwill, stays outside the marital pool.” Others are more concerned about spousal approval requirements in major business transactions or potential liability overlaps.

“There are others who fear that if the marriage dissolves or on death, the spouse could end up with an unwanted stake in the business, complicating succession for children or partners,” he adds.

Enforceability and legal certainty

As to whether such clauses hold up in court, Dr Hili is clear: “Yes. A prenup can be drafted to keep business assets outside the ‘community pot’. The other spouse would have no claim over the assets in separation or divorce if they are opting for a separation of estates.”

He adds that these arrangements must be made “through a public deed, in front of a notary, which offers the highest degree of protections in terms of contract law.”

Importantly, he notes that Maltese courts uphold such agreements when properly executed. “Contracts legally entered into have the force of law for the contracting parties. Once validly formed, a contract is binding as though it were law between the parties.”

Should a couple wish to change their property regime after marriage, the Court of Voluntary Jurisdiction must approve it. “But ultimately, once executed, the legal consequences brought about are more or less identical,” he concludes.

While prenuptial agreements may still carry social stigma or seem unnecessary to some, for those who own or manage a business, they can be a prudent form of protection.

As Dr Hili’s insights show, the Maltese legal system already provides the structure – what remains is the foresight to make use of it.

Featured Image: Dean Hili / dalliadvocates.com