Legal AdviceMarriage

What Are The Clauses Of A Prenup Agreement?

In this article, you will learn about the different clauses of a prenuptial agreement, its goal and why it is important.

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Although it is still uncommon in India, prenuptial agreements are real. We don’t know what the future holds for us, so it’s best to be prepared for anything. Marriages in India are regarded as special and sacred, but a prenup agreement comes in. 

A prenuptial agreement is a contract signed by the spouses just before their marriage. This contract details the financial settlement between the partners in the event of death, divorce, or separation. Generally, it is a contract for both parties’ share of property, money, assets, and anything else they will receive if the marriage ends. 

In this article, we will learn the clauses that govern prenup agreement along with their advantages and disadvantages. Let’s have a look! 

Goal Of A Prenuptial Agreement

In divorce or separation, a prenup saves both parties from fighting over court dates, dealing with perplexing acquisitions, blaming each other, or receiving less alimony or paying more alimony. In such a case, the prenup is not just more convenient but also less time-consuming, and it makes us prepared for the beat in any scenario. 

Without a doubt, most laws on the alimony favour female spouses and thus fail to take into account the financial circumstances of male spouses. As a result, the decision ultimately favours the female partner. However, in the case of a prenup, the debts are pre-determined so that none of the spouses is harmed during the separation. A prenuptial agreement promotes financial transparency, and as a result, both partners are aware of each other’s financial situation. This eliminates any possibility of cheating or fraud.

Prenuptial Agreement Clauses

Following are the clauses under the Prenuptial Agreement

  • Disclosure of both parties’ liabilities and assets
  • Both parties’ financial and monetary positions
  • Both parties’ real estate properties
  • A will and a testament
  • Property distribution in the event of divorce
  • If the marriage is dissolved, the parties must pay maintenance or alimony to each other.
  • The custody and upkeep of the child/children
  • The financial status of both parties’ businesses (if any) and the business partnership (if any)
  • Financial savings
  • Limits on credit cards, debts, spending, and payments
  • Investments in money
  • Retirement accounts and benefits
  • Medical insurance and life insurance claims
  • The administration of joint bank accounts or other accounts
  • Managing expenses of households, bills, and other miscellaneous expenditures
  • Jewellery administration


When Can A Prenuptial Agreement Be Enforced?


  • A prenuptial agreement is only enforceable if the contract is fair, transparent, in writing, and mutually signed by both parties.
  • The agreement must be duly signed by both partners and executed before the marriage.
  • The contract must be made and signed voluntarily. Nobody should be compelled, beaten, or put under pressure.
  • Notarisation and certification of the contract are required.
  • The contract should include a clause that states that even if any of the contract’s provisions become invalid, the agreement will remain valid and in force.
  • The contract should list all the financial assets, liabilities, and assets owned by both parties.
  • The contract must not include any false or invalid information

The Benefits Of A Prenuptial Agreement

Following are the benefits of the prenup agreement

  • A prenuptial agreement simplifies and expedites the procedure of maintenance and legally bounded separation. It also assists parties in avoiding exorbitant legal fees.
  • A prenuptial agreement protects both parties from the debts of the other.
  • A prenuptial agreement protects both parties financially if one of them dies.
  • A prenup safeguards and helps protect the child in the event of a divorce or mutual separation between the parents.
  • A prenuptial agreement financially safeguards the future of both parties because money matters are pre-determined.
  • A prenuptial agreement protects both parties’ custody and remarriage rights.
  • This agreement prevents the parties’ businesses from being divided.
  • A prenuptial agreement ensures maintenance, alimony, and actual support by the spouse 
  • A prenuptial agreement is highly beneficial in avoiding a complicated situation in court during a divorce or legal separation.
  • A prenuptial agreement reduces the likelihood of conflict between the parties, resulting in a good mutual understanding between the parties. 

A prenuptial contract has no legal disadvantages but is still considered taboo in India. It reflects poorly on the duo who do it. Because marriage is a sacred practice, couples who opt for a prenup agreement are regarded as overly practical or simply realise that marriage will not last. This is one of the reasons why people living in a country like India still don’t believe in going for it. 

Prenuptial Agreement Disadvantages

Following are the drawbacks of the Prenuptial Agreement:

  • Choosing a prenuptial agreement is a difficult decision for both parties because they are continuously judged by society.
  • A prenuptial agreement, in some ways, implies that the marriage will not last forever, as it encourages the abolishment of marriages.
  • With all of the benefits of a prenup, it can also influence the couple in undesirable post-marriage circumstances.
  • Instead of strengthening the marriage and understanding, a prenuptial agreement can highlight the impact of finances between the couple.
  • A prenuptial agreement can have a negative impact on both parties’ lifestyles.
  • A prenuptial agreement can also include a ‘no child’ clause (depending upon the partners).


If you and your partner want to prepare for any possible scenarios involving your upcoming marriage, consult an experienced family law attorney to see if a prenuptial agreement is right for you. Apart from that, we have covered all the important details in this article about the laws and clauses of prenup contract and also listed the benefits and drawbacks of the same. Before opting for such a contract, it is advisable to read the complete information on Vakilsearch for a hassle-free process. 


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