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?

  1. NOT sure if this post was meant to be for Indian audience!!! or American audience!!!

    In India:
    Imagine telling your would be wife or gf or brides parents that you are going to have a pre-nup agreement…. Is society even remotely ready for it!!!

    USA:
    Not yet a common practice amongst middle class and couples do have issues with the idea, however laws are quite clear hence it might be beneficial. With that said, It is doubtful if acceptable in Indian community!

    In short, its a good insurance but how many will take it or even consider it!!!

    Counter to pre-nup might be:
    1. Find out more about your partner and their habits
    2. Financial behavior
    3. Income, Saving & Spending ratios
    4. Debt obligations
    This route might be much easier, no doubt insurance is a legal document in court of law…

  2. Prenup,

    In current scenario, if a guy talks about pre nup and says in case of divorce, Brides parents will look with suspicion, ohh this guy is talking about divorce even before marriage, “daal mein kuch kaala hai”
    Forget pre-nup, the marriage itself might get called off.

  3. Truly times are changing.

    Some couples these days are taking screening tests/ genetic testing once marriage is decided.
    Can’t assume it implies lack of trust.

    Maybe pre nup is not unexpected.

  4. one of friend is suffering as he fell in love and now his wife is asking for 2 crores for separation or she will live with him.
    in both ways his life will be hell , he is happy just being separated and enjoying his life as court will take its decision and will eat up to 10+ years.

    “people dont go to court when they marry but when they want to separate they move to court”

  5. Pre-nup is redundant in India just due sec498a.

    The rule is very simple,girls family charges guys family with 498a.Next out of the court settlement happens and guys family pays what girls family asks for.So prenup is redundant.

  6. One of my female colleague rejected a guy, just bcoz he started discussing how they can share finances after marriage with her. She thought this guy is already making PLANS with her salary & rejected the guy.

    So when I saw you posts regarding discussing with would be’s about finances & pre nup’s I feel ***** 🙂

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