Is a Prenuptial Agreement valid in India?

Table Of Content

• What Is a Prenuptial Agreement?
• Why Do People Get a Prenuptial Agreement?
• How Does a Prenuptial Agreement Work?
• Is a Prenuptial Agreement Valid in India?
• How to Create a Prenuptial Agreement Online?
• What to Include in a Prenuptial Agreement?
• Can a Prenuptial Agreement be Nullified?
• How to Nullify a Prenuptial Agreement?
• Conclusion

A prenuptial agreement or prenup is a legal contract that is done by the couples before their marriage or tying the knot. It states that the assets, debts, and finances will be divided in the case of a divorce, separation, or even death. A prenup can bring peace of mind by making sure everyone’s financial interests are clear and protected. 

What Is a Prenuptial Agreement?

A prenuptial agreement is a contract that couples make before they marry. This contract details how their wealth, property, debts, and other financial matters will be handled if the marriage ends. Commonly it’s a way for couples to pre-arrange financial matters, reducing the risk of conflict if things change between them.

Why Do People Get a Prenuptial Agreement?

There are several circumstances as to why a couple may want to have a prenup and, these factors are usually relative to their individual specific situations;

• Protecting Assets: If one partner has already acquired significant individual assets such as properties, savings, or even a family firm, the cost of a prenup will be worth it because those assets will remain with that person if the marriage is ever dissolved.
• Avoiding Debt Controversies: If one partner already has heaped debts such as student loans, debts from credit cards, or even some debts resulting from business partnerships with the other spouse, sometimes welcome the other spouse being responsible for those debts. Otherwise, the spouse who is getting debt-free will often be sent under a prenuptial agreement to safeguard himself/herself from dealing with such debtor creditors in the first place.
• Prevention of Surprises: There are always financial expectations from both sides. They may not be clearly enunciated from the beginning, but they sure are there. So there isn’t much, for example, where spouses may expect who gets which item after dissolution of marriage. With the use of a prenup, the expectations, which promote unpleasant surprises and disagreements, can be substantially improved.
• Individuals with Previous Marriages: An obvious characteristic in those who are getting married for the second time or with children from a previous relationship is that they would want a safe instrument such as a prenup that would safe guard their assets while still giving their children the assurance they would not be denied their inheritance rights.
• Protection of Business: In the event that one or both spouses have prior marriages with business ties, a prenup would help the spouse own businesses to prevent the businesses from being divided among the spouse in the event of one spouse seeking the dissolution of marriage.

Also Read – Difference Between Judicial Separation And Divorce

How Does a Prenuptial Agreement Work?

In the case of prenuptial agreements, couple’s future living standards and division of wealth is fixed and is usually focused on: 

• Property Division: Determines the way in which the property, assets and accounts accrued throughout marriage will be split in such a way that the individual assets that have been carried into marriage are preserved.
• Spousal Support: Defines the conditions of the alimony, such as if and in what amount one of the spouses is obliged to pay.
• Debt Responsibility: Outlines any debts that will have to be paid, with debts created in marriage being among them.
• Inheritance: Determines the manner in which, and the persons who will have the legal capacity to inherit wealth in case of children out of the union.

The law normally upholds these provisions except in cases where they are found unjust, obtained through duress or contrary to the law.

Is a Prenuptial Agreement Valid in India?

Prenuptial agreements are not as widely recognized in India as they are in Western countries. Although western nations are quite saturated with them, Indian law’s views seem a bit limited. Law doesn’t have any specifications governing prenuptial agreements. It is considered that the family structure in most of India is in a transitional stage. Indian courts apply almost always laws of personal statutes such as Muslim Law or Hindu Marriage Act; these statutes do not allow prenuptial agreements recognition. Although that said, I do suspect a court might be able to enforce a prenup if, firstly, it didn’t directly contravene personal rights and public policy and appeared reasonable to the two parties. There’s no such thing as a certainty as to the enforceability of a prenup in India for obvious reasons.

How to Create a Prenuptial Agreement Online?

To create a Prenuptial Agreement online, you can visit our website edrafter.in and follow some easy steps to create this agreement. Here are the steps:

1. Click on the ‘Legal Documents’ and then ‘Request for Customized Document’ in the main menu of our website.
2. Now, you will be redirected to our ‘Custom Document Drafting’ page where you need to fill a simple form to provide us some required information.
3. Now,  we will schedule a call for you with our Advocate and we will share the call details on your email.
4. During the call, Advocate will understand your requirement for the Document.
5. Now, our Advocate will prepare a draft of your document and the same will be shared with you on your email for your approval.
6. Now, you can check the draft and ask for any changes if you want.
7. Now, Advocate will make the changes you asked and will share the same again for your approval.
8. Once you approve the draft, our team will create the document and will send the hard copy of your document at your doorstep.

What to Include in a Prenuptial Agreement?

A well-drafted prenuptial agreement should clearly define the following:

• Asset Division: This clause contains the manner in which the different types of asset and property acquired during the marriage will be divided in the event that the marriage ends.
• Debt Responsibility: This clause describes any debts that were there even before the marriage but have not yet been paid.
• Spousal Support: Simultaneously how much spousal support is entitled, if any, including the period for which it will be paid.
• Inheritance: Our inheritance determination, especially in cases where children are involved from marriages not during the course of said relationship, will be explained clearly.
• Business Interests: In case one partner has a business, they can mention in the prenup that whatever the business’s value at the time of marriage, that value will remain protected.
• Dispute Resolution: Often, prenuptial agreements will include clauses that describe how the parties envision resolving any future disputes, including whether they should go to court or follow other procedures such as arbitration or mediation.

Can a Prenuptial Agreement be Nullified?

Well, the law recognizes that a prenup can be narrowed down if certain requirements are met. Courts can void a prenuptial agreement when three requirements are met.

• Failure to Disclose: If one party has deliberately concealed his assets or debts, the agreement may be rendered void.
• Coercion or Pressure: The agreement cannot be enforced where the other spouse was forced or otherwise unduly influenced into signing it.
• Unfair Terms: The court may also refuse to enforce the agreement where the set terms are grossly unfair or unreasonable.
• Improper Signing: There exists the potential that an agreement may not be enforced where it was signed in a manner that is improper such as lacking necessary witnesses or required notary’s seal.

How to Nullify a Prenuptial Agreement?

To Nullify the prenuptial Agreement, the parties have to prove the court that the agreement was signed under duress, fraud or lack of disclosure and the process generally involves the petition which has to be filed before the court and presenting the evidences by the court after that the court will review the evidences and determine that whether to uphold or nullify that agreement based on the facts which is submitted before the court.

Conclusion

A prenuptial agreement can be an important tool for couples looking to protect their assets and clarify financial matters before marriage. While it may not be necessary for everyone, it can provide peace of mind and help avoid future conflicts if the relationship ends. To ensure fairness and legality, it’s best that both parties approach the prenup with transparency and honesty, and consider consulting a lawyer to ensure everything is in order. When executed properly, a prenup can provide a solid foundation for the marriage and protect the interests of both partners.