Yuzvendra Chahal-Dhanashree Divorce Settled with ₹4.75 Crore Payout: No Prenup, But What Are the Alternatives?
Yuzvendra Chahal will pay Dhanashree ₹4.75 crore in alimony as part of the settlement; this amount has sparked a renewed discussion about prenuptial agreements in India. Would the procedure have been easier with a prenuptial agreement? Do Indian laws even recognize such contracts?
Ankush Pandey
Highlights
- Chahal-Dhanashree divorce: What are the tax ramifications of India's alimony laws for working women?
- The court expedites proceedings and grants a divorce to Yuzvendra Chahal and Dhanashree Verma.
Yuzvendra Chahal, a cricket player, and Dhanashree Verma, a choreographer, were officially divorced by the Mumbai family court on Thursday, ending their three-year marriage. Both parties' joint petition has been approved by the court. "The parties are no longer husband and wife," Chahal's lawyer, Nitin Kumar Gupta, informed reporters outside the courtroom.
Chahal will give Dhanashree ₹4.75 crore in alimony as part of the settlement; this amount has sparked a renewed discussion about prenuptial agreements in India. Would a prenuptial agreement have streamlined the procedure? Are these contracts even enforceable under Indian law?
According to Rohini Musa, a senior advocate at the Supreme Court of India, "Prenuptial agreements in India currently lack widespread legal backing, except in Goa, where the Portuguese Civil Code applies."
"These agreements have historically been regarded with skepticism by Indian courts, which frequently declare them invalid on the grounds of public policy."
However, the legal environment might be changing. A prenuptial agreement was recently upheld by a Mumbai family court, which cited the agreement's value in lowering conflict. In a similar vein, a Delhi court supported mandatory prenuptial agreements, citing their capacity to simplify procedures and reduce psychological suffering.
Why are prenups gaining relevance?
In complex asset structures involving high-net-worth individuals or joint family property, they provide financial clarity. In marriages where both partners make financial contributions, they also guarantee fair distribution. They can protect blended families' children's financial interests from past relationships. Additionally, by outlining conditions for asset division and alimony, prenuptial agreements can help prevent protracted court cases.
But challenges persist.
In society and culture, prenuptial agreements are viewed as compromising the sanctity of marriage. Because talking about terms of separation prior to marriage can cause mistrust, they also carry emotional baggage. Drafting them requires legal accuracy and expense, which discourages many. More importantly, they might disadvantage the spouse who is less wealthy if they are not fairly constructed.
Alternatives to prenups include:
- If based on mutual consent, postnuptial agreements—which are written after marriage—are recognized by the Indian Contract Act.
- Trusts, which provide directed inheritance and asset protection.
- Wills are essential for protecting dependent interests and estate planning.
- Marriage property agreements define how assets are divided during a marriage.
