In recent headlines, the divorce between Indian cricketer Yuzvendra Chahal and choreographer Dhanashree Verma has captivated attention, particularly with the final settlement amount: a significant ₹4.75 crore payout. What has made this case even more intriguing is the absence of a prenuptial agreement (prenup), a legal tool that is often used by celebrities and high-net-worth individuals to safeguard their assets and ensure a smoother divorce process. The absence of a prenup has raised important questions about the alternatives available in the Indian legal framework for asset division during a divorce. In this article, we explore the Chahal-Dhanashree case, examine the role of prenups in Indian marriages, and look into the various alternatives for couples who do not enter into such agreements.
The Chahal-Dhanashree Divorce Settlement
Yuzvendra Chahal and Dhanashree Verma’s divorce settlement has made waves due to the size of the payout and the public nature of their separation. As one of India’s most popular cricketers and a well-known social media influencer, Chahal’s wealth is substantial, while Dhanashree, a successful choreographer with a massive following, is also a high-income earner. The ₹4.75 crore settlement sum is seen as a reflection of both the couple’s individual financial statuses and the terms negotiated during the divorce proceedings.
The fact that there was no prenup in place between Chahal and Dhanashree is notable because many wealthy couples in high-profile relationships often opt for such agreements to protect their assets in case of separation. Prenups can outline terms for spousal support, division of property, and financial assets, preventing lengthy court battles and uncertainties.
Despite not having a prenup, the couple’s divorce appears to have proceeded without major legal disputes, with the ₹4.75 crore settlement agreed upon as part of the divorce terms. The settlement underscores the significance of mutual agreement in divorce cases, but it also raises questions about how this payout was calculated, and whether other legal alternatives could have been utilized by the couple in the absence of a prenup.
Understanding Prenups: A Legal Tool for Asset Protection
A prenuptial agreement, commonly known as a prenup, is a legal contract entered into by a couple before their marriage. It typically outlines how assets will be divided in the event of a divorce, including issues like alimony, division of property, and even responsibilities regarding debt. Prenups are common in many countries, particularly in the West, and are used by high-net-worth individuals, celebrities, and those with significant assets or businesses.
In India, however, prenuptial agreements are not as widely used or recognized under the current legal framework. Indian marriage laws, including the Hindu Marriage Act (HMA) and the Special Marriage Act (SMA), do not specifically provide for the enforcement of prenups. Although a prenup can be drafted and signed, it is often not enforceable in the way it might be in Western countries. Indian courts tend to favor provisions under the applicable marriage laws, which prioritize fair and just division of assets and alimony based on the needs and circumstances of both parties.
Alternatives to Prenups in India: Legal Provisions for Divorce Settlements
In the absence of a prenup, Indian couples still have several legal avenues to protect their rights and interests during a divorce. Here are some of the key alternatives that individuals can rely on in such cases:
- Section 25 of the Hindu Marriage Act (HMA):
Under the Hindu Marriage Act (HMA), which applies to Hindus, Buddhists, Sikhs, and Jains, Section 25 deals with alimony or maintenance. It allows the court to order one spouse to pay maintenance to the other based on their financial situation, needs, and the duration of the marriage. In the case of divorce, the court can also decide on a lump sum amount that one spouse must pay to the other, taking into account factors such as the standard of living during the marriage, the income and assets of both parties, and the earning capacity of the spouse requesting maintenance.
While this provision does not offer the same level of clarity and pre-marriage protection that a prenup does, it provides a legal framework for determining spousal support and settlement in case of divorce.
- Special Marriage Act (SMA):
The Special Marriage Act (SMA) provides for marriages between individuals of different religions or for those who choose to marry under a secular law. Like the HMA, the SMA also allows courts to award alimony or maintenance during a divorce proceeding. This law permits a more customized approach to divorce settlements and asset division, depending on the individual circumstances of the couple.
- Mediation and Negotiated Settlements:
In many divorce cases, particularly those involving high-profile individuals, mediation and out-of-court settlements are increasingly popular. Mediation involves a neutral third party who helps the couple reach an agreement regarding the division of assets, child custody (if applicable), and alimony. Mediation allows both parties to avoid lengthy court proceedings and maintain privacy while negotiating a mutually agreeable settlement.
This was likely the case with Chahal and Dhanashree, where they may have opted for a private agreement facilitated through negotiations, leading to the ₹4.75 crore settlement without needing a formal prenup. Mediation and negotiated settlements are often favored in high-net-worth divorces because they can be faster, less adversarial, and more confidential.
- Financial and Property Settlements During Divorce:
When divorce proceedings are initiated, a court may order a settlement of financial matters, including the division of marital property, assets, and liabilities. In India, the courts typically distribute marital property equitably, but not necessarily equally, depending on the contribution of both spouses to the marriage, their financial standing, and their individual needs. Property and asset settlements can be negotiated as part of the divorce decree, especially if the couple agrees to the terms without a long litigation process.
The Need for Legal Reform and Awareness
The case of Chahal and Dhanashree underscores the importance of financial planning and legal preparedness in marriages. While prenups are not a widely recognized or enforceable concept in India, they have gained popularity in recent years, particularly among high-net-worth individuals. As more couples opt for prenups or alternatives like mediation and negotiated settlements, there is a growing need for legal reform and greater awareness of how marriage laws address asset division and alimony.
For those who choose not to enter into a prenup, understanding the legal alternatives available can be crucial in protecting one’s financial interests during a divorce. While the absence of a prenup may not prevent a fair settlement, having clear legal knowledge can ensure that both parties are treated equitably in the divorce process.
Conclusion
The ₹4.75 crore divorce settlement between Yuzvendra Chahal and Dhanashree Verma may have captured the public’s attention, but it also sheds light on the broader issues surrounding divorce settlements in India. Although prenups are not yet widely accepted or enforceable in the country, individuals have alternative legal options, such as the provisions under the Hindu Marriage Act, the Special Marriage Act, mediation, and property settlements. As divorce becomes increasingly common in India, the need for a clearer and more comprehensive legal framework for asset division and spousal support becomes more evident, helping individuals navigate the complexities of ending a marriage while protecting their financial interests.
