What is a pre-nup?
Well it is a short form for pre-nuptials. A pre-nup agreement is an agreement between two people who are about to get married or are just recently married.
It is an agreement that writes down:
– how the existing assets (pre marriage) will be divided among them,
– how the expenses will be shared
-who will fund the purchase of assets
-how will the assets be divided in case of a divorce / separation
– how will the children’s expenses be divided
-if there are children /inheritances from a previous marriage how will that be handled
– expenses of parents and inheritances from parents / other relatives
-existing real estate and new real estate – how funded and how it will be funded in future
– how the debt gets divided
– if one spouse were to give up his/ her career to have a baby / provide medical support to a parent/sibling how will the finances be handled…
So let us clear some myths regarding pre-nuptials in India…I am not sure it will work if it is made under the Hindu Marriages Act. I think it should be made under the Indian Contract Act, 1876 (please consult a lawyer). Now for the myths:
-getting a pre-nup done does not mean you are suspecting your marriage / spouse
– the Indian laws are extremely against the man. Men need a pre-nup to protect their inherited / accumulated property.
– when one partner has a lot of debt and the other partner has a lot of assets a pre-nup is absolutely essential
– even if you are married you CAN ENTER INTO AN AGREEMENT – even though it is called pre-nup
-do not try to do it yourself, go to a lawyer for the drafting and signing.
– if you have kids from the previous marriage their rights have to be protected NOW.
– if you are planning to leave the workforce to have kids, you need to know the financial implications of that
So go and find out about a good lawyer, understand what can and cannot be covered by a pre nup agreement. Then sit with your spouse and sign one.
Pre nup is just a safety net……just in case – like insurance.
I hope none of you ever need it….but knowing it is there is useful, na?
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