Divorce is not only a psychologically chaotic matter, it can also have profound financial implications – because what is a marriage if not an investment of time, energy, emotions and also money!
If you are considering a separation or someone who likes to be kept informed about divorce proceedings, here is what exactly “alimony” is and how it is calculated in India.
What is maintenance?
Maintenance (maintenance, support or maintenance) is that financial support given to a spouse after divorce. It is usually granted when a spouse does not have sufficient means to meet the basic needs of life. Even though, maintenance can legally be granted to each spouse, usually it has to be loaned by the husband to his wife.
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Who is entitled to maintenance?
Under Section 25 of the Hindu Marriage Act, the wife or even husband is granted permanent alimony by the court for their alimony and alimony. If the wife is a working woman but has a significant difference between her net income and that of her husband, she will still receive maintenance so that she can maintain the same standard of living as her husband.
If the wife has no income, the court will take into account her age, educational qualifications and ability to work to determine the amount of maintenance. If the husband is incapacitated and unable to work and the wife is earning money, the court grants maintenance to the husband.
How is the maintenance calculated?
There is no set formula or rule for calculating the alimony a husband has to pay his wife. Maintenance can be granted as a periodic or monthly payment or as a one-off payment in the form of a lump sum.
If the maintenance is paid monthly, The Supreme Court of India has 25% of the husband’s monthly net salary as a reference amount for t. setHat should be granted to the woman. There is no such benchmark for one-time billing, but usually Amount is between 1/5 and 1/3 of the husband’s net worth.
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However, there are certain factors that the court takes into account when calculating the maintenance amount. Such factors can vary and can include:
Husband and wife’s income and other assets, if any
Behavior of husband and wife
Mandatory deductions such as income tax, EMIs, loan repayments, etc. are taken into account when calculating the husband’s net income
Husband’s liabilities, such as dependent parents
Social status and lifestyle of both parties
Age and health status of both parties
The length of time the couple was married
Expenses for education and upbringing of the child (s)
Therefore, the court decides the amount of maintenance to be paid on the basis of a number of factors depending on the specific circumstances and facts of the case.
Note: The above information is general in nature and is for educational purposes only. Nothing here is to be construed as investment, financial or tax advice, or as an invitation or solicitation. Readers are advised to use discretion and seek independent professional advice before making any financial or legal decision.