A divorce generally involves separation of a couple or a family and along with it come hassle of splitting their property or assets between them to determine what is “his” and “hers”. Divorce is a huge step in anyone’s life and it not only affects you personally but financially too. It is therefore important to understand the financial implications of divorce.
If the divorce is happening by mutual consent, the problems of splitting in the assets in a manner fair to both parties can be resolved easily. However what about in an ugly divorce? Do the same rules of fair manners sustain or either of the party is greatly undermined?
Earlier, a woman was entitled for a share in husband’s properties, but there was no quantum defined as per law, it would be any percentage depending on the case. However, as per the latest amendment, the property has to be divided in equal ratio. This rule is applicable to all the properties of the husband acquired before and after the marriage, whereas, earlier the wife used to get share only in those properties which are acquired by husband only after marriage.
In case a couple register a residential property in joint name, in the event of divorce women will keep her 50% part and she will also get half of her husband share in the house, so 75% wife and 25% husband.
The wife will also be entitled to get a share in other kind of properties, but the quantum is not fixed, as per the Bill, it will depend on “living standard of the wife”.
Apart from all these, properties such as mutual funds, some business ventures, etc are also a part the property for division and are to be equally distributed between the couple.