The Property Rights of Spouses Act (PROSA) ensures the legal and fair division of property between spouses, whether in a marriage or common-law relationship.
The Property (Rights of Spouses) Act, 2004, effective from April 1, 2006, aims to provide guidelines for dividing property between spouses. Traditionally, the term “spouse” refers to a husband or wife, but this Act broadens the definition to include a single woman cohabiting with a single man for at least five years, and vice versa. This expanded definition is crucial as it equates common law relationships with marriage regarding property disputes.The Act introduces the ‘equal share rule,’ presuming each spouse is entitled to half of the family home upon divorce, cohabitation termination, marriage annulment, or separation without reconciliation prospects.
However, this presumption can be challenged with evidence, allowing courts to adjust the division if deemed unreasonable or unjust.Spouses can approach the court during marriage or cohabitation for property disputes, and the court may order property sales if necessary. If one spouse endangers property value, the other can request a division. The court can also divide non-family home properties.The ‘equal share rule’ does not automatically apply to commercial properties, businesses, or stocks, requiring claimants to prove their contribution to the property’s acquisition. The Act also enforces prenuptial agreements, a departure from previous non-enforceability due to public policy concerns, provided they are written, signed, and legally advised. Additionally, postnuptial and settlement agreements are recognized for resolving property disputes amicably.
Source: Ministry of Justice
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