Divorce is a traumatising process. It is not only an emotional turmoil but also a financial. At the time of divorce, life takes such a turn that finances are the last thing that a person thinks of. But, in this way, we jeopardise our rights and regret later. Business owners usually are unaware of the manner in which their assets will be divided. Especially, the women who do not take much interest in the finances end up losing their shares to their husbands. It is important that the husband and the wife settle their finances with the help of a lawyer so that there is an equitable distribution of resources. For example, the couples living in Mumbai can consult the divorce lawyer in Mumbai there, who can help them in settling their finances at the time of the divorce.
Things that the Business Owners must keep in Mind
- As per the law, any investment made in the name of the woman will be a part of her personal wealth if eventually, a divorce takes place. Earlier this transaction, constituted as a benami transaction and woman was made the sole beneficiary. But after an order passed by the Delhi High Court, if the husband makes a purchase from the known sources of his income, in the name of his wife, then the wife will not be the sole owner and even the husband will have a share in this transaction. So, the wife can claim her share in the property which is bought in her name, shares/ investments made in her name, joint account, etc.
- If the husband purchases or makes an investment and gifts it to his wife, then the wife will be the sole beneficiary of this gift and husband will have no share in it.
- The wife is the sole owner of the Streedhan. Streedhan is the gift that the wife gets at the time of the marriage from both the sides of the families. The husband cannot claim a share in it. If the Streedhan is in the custody of the husband or any of his relatives and they misuse it, then it amounts to criminal breach of trust.
- The wife can claim an interim maintenance i.e. when the divorce proceedings are continuing. She can also claim alimony and maintenance which depends upon a few factors like the income of the husband, income of the wife, his financial conditions, the ability of the wife to sustain her life.
- The wife can claim a right to residence in the matrimonial home. She can claim child maintenance from the husband for the welfare of the child.
A divorce settlement is a better option as compared to a contested divorce. It can be time-consuming and can act as an impediment towards starting anew. But the divorce settlement must be planned wisely. It can have a huge impact on finances, property, child custody, maintenance, assets of the couple. It is important to plan a divorce settlement properly before going for it as it can bring a huge change in the lives of the couple. It should not be a decision taken at the heat of the moment. The new life that emanates after a divorce carries on elements from the previous life. So, it is important to consider all the aspects of a divorce settlement carefully before signing it or agreeing to it.
With the help of a lawyer, you must discuss the following aspects with your spouse before getting into a divorce settlement. These include-
- Discuss your finances wisely
Financial and emotional matters must not be mixed and must be dealt with separately. Before going for a divorce, it is important to list down your finances and assets. Along with the assets, it is important to list your liabilities and expenses. For this, it is important to note down your spouse’s annual income, families and child’s financial expenses, the value of the valuables like jewellery, antiques, etc, the value of the property, financial liabilities like house rent, debts, etc. Evaluating your finances wisely will help you reach an amicable settlement.
- Division of Assets
After listing down the assets, it is important to amicably divide so that none of the parties suffers after the divorce. Alimony/ maintenance must also be decided on a lump sum or a periodic basis depending upon the income and needs of both the spouses. This is important so that the divorce settlement does not get converted into litigation.
- Child Custody
Child Custody and maintenance is an important aspect and must not be ignored. While deciding the rights of the child, his welfare must be kept in the mind. It is important that the physical custody, visitation rights, financial rights of the child must be wisely settled before going for a divorce.
After deciding these issues, it is important to get them documented to avoid unnecessary issues in the future. This agreement can be drafted with the help of a lawyer. It is important that all the terms and conditions must be laid down in detail and must be cross-checked by both the parties. This document will avoid confusion in the near future. It will avoid the litigation process. Financial aspects can be settled with the help of a lawyer. It is important to break free from the clutches of a bad marriage. But in order to move forward in life, it is important to plan your finances wisely especially the ones owning a business as divorce has the tendency to ruin your business.
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