Is there a way to safeguard your assets through a prenuptial agreement before your wedding? A prenup pact can help you only to a limited extent. This is because there is no formal legislation on prenuptial agreements in India.
A prenup agreement is a contract signed by a couple before they get married and determines the ownership rights of their respective assets if the marriage fails later. In case of a divorce, the division of assets and alimony payout to the spouse happens as per conditions laid down in the prenup agreement. Prenups are prevalent in countries like the US and Australia and slowly gaining ground among Indian couples. However, it is not legal in India.
“Pre-nuptial agreements have traditionally been perceived as being against public policy. While Indian culture continues to lay emphasis on the traditional nature of marriage, it is undeniable that the attitude towards marriage has been evolving. Today, spouses are more comfortable demarcating and protecting assets acquired by them prior to marriage," said Jahnavi Dwarkadas, associate partner, SNG & Partners.
As there are no formal laws on prenups, the terms and conditions laid down in the contract are not legally binding and the validity of those conditions, in case of a dispute raised by either of the spouse, are finally decided in the courts. In any case, the prenup conditions cannot override the legal rights of a spouse, say legal experts.
“In the absence of any formal legislation governing pre-nuptial agreements, the law on the subject is largely judge-made," Dwarkadas said. “All pre-nuptial agreements are tested against the touchstone of public policy as any contract against public policy is considered invalid. Any agreement that ignores statutory
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