Understanding Prenuptial Agreements:
A prenuptial agreement, often referred to as a “prenup” or “premarital agreement,” is a legally binding contract entered into by a couple before they get married. Its primary purpose is to establish the financial rights and responsibilities of each party in the event of divorce, separation, or death. While prenuptial agreements have often been associated with the wealthy, they are increasingly common among couples of all financial backgrounds.
What is the purpose of a prenup?
- To protect possessions obtained before marriage
- To protect the company or trust property
- To protect your assets from your partner’s debts
- To protect the financial interests of your children
- To agree on how you will manage your finances between you
- To agree on the division of finances should your relationship break
Conditions Under Which a Court May Dismiss a Prenuptial Agreement?
- The agreement would be void by the court if the lady gave up any legal rights in it. This is because it is null and void for any party to an agreement to forfeit their legal remedies.
- The agreement would not be accepted in court on the grounds of public policy breach if it stated that the child would have sole custody of one parent following their separation and would not be permitted to see the other.
- A Fortune 500 business magnate’s marriage would not disintegrate in a few months, thus neither party would get half of the estate.
- If any of the prenuptial agreement’s clauses are unreasonable or unfair to one of the parties.
Is Prenuptial Agreement Legal in India?
Prenuptial agreements are now regarded as regular agreements in India since there is no express legal basis for them; nevertheless, a court may approve the agreement if both parties agree. According to the Hindu Marriage Act of 1955, a premarital agreement is legally void in India because marriage is seen as a sacred connection between two people.
Even though there isn’t a specific law in India that governs prenuptial agreements, the Indian Contract Act,1872 would nonetheless apply if one were to be considered in that country. As per Section 10 of the Act, 1872, agreements made with the free consent of the parties shall be deemed to constitute contracts.
Conclusion:
A prenuptial agreement is not a prediction of marital failure but rather a proactive step towards financial security and transparency. It allows couples to enter into marriage with a clear understanding of each other’s financial expectations and provides a safety net should unforeseen circumstances arise. By taking the time to discuss and draft a prenuptial agreement, couples can strengthen their relationship and focus on building a life together with peace of mind, knowing that their financial futures are secure.
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Written by: Avichal Singhal Adv.