
Money After Divorce - Do You Know How Court Calculate Alimony?
On march 20, a mumbai family court recently granted a divorce to indian cricketer yuzvendra chahal and dance choreographer Dhanashree Verma. chahal will provide Dhanashree Rs 4.75 crore in alimony as part of the settlement.
How is Alimony Calculated?
In india, there is no set formula for alimony. Courts take into account a number of variables, including each spouse's financial situation, earning capacity, and marital contributions.
"In indian divorce situations, alimony is not a rigid formula. According to Nikita Anand, Family Law Advocate and Partner at Magnus Legal services LLP, "courts make decisions based on a number of factors, including the financial status of both spouses, their earning potential, and their contributions to the marriage."
For example, if priya, a 20-year housewife, divorces her affluent businessman husband Rajesh, the court will take into account Rajesh's high salary and Priya's lack of independent income.
Even though priya has a degree, the court will acknowledge that she gave up her job to help her husband's company, his family, and their kids. In addition to taking Rajesh's financial situation into account, the alimony award attempts to guarantee priya maintains a comparable standard of living after the divorce. This avoids excessive hardship and guarantees justice.
In his additional explanation, supreme court of india Advocate-on-Record Srisatya Mohanty stated that courts take into account a number of factors while determining alimony.
"The court takes into account a number of variables, such as both spouses' incomes, marital behavior, social and economic standing, personal costs, and obligations to dependents. Additionally considered is the wife's quality of life during the marriage. Many alimony issues end up before the supreme court because these criteria are subjective, according to Mohanty.
The supreme court has outlined key factors for granting permanent alimony in the case of Parvin Kumar Jain vs Anju Jain (2024 INSC 961). These factors include:
Social and financial status of both spouses.
Reasonable needs of the wife and dependent children.
Employment status and qualifications of both parties.
Independent income or assets of the applicant.
Standard of living during the marriage.
Sacrifices made for family responsibilities.
Legal expenses for a non-working spouse.
Financial capacity of the husband, including his income and liabilities.
Asserting that alimony should shield the dependent spouse rather than punish the other, the supreme court has also issued a warning against the abuse of laws that are geared toward women.
Alimony might not be required if both parties have comparable financial circumstances, such as if the husband and wife both make Rs 1,00,000 a month. The court may, however, mandate financial assistance if one spouse has a greater financial burden, such as raising children.
Can Men Get Alimony?
Alimony is typically linked to wives who get financial assistance from their husbands. Nonetheless, under some circumstances, males are permitted to seek alimony under indian law.
A husband may request alimony under Sections 24 and 25 of the Hindu marriage Act, 1955, which adopt a gender-neutral stance. However, the primary focus of legislation such as the Protection of women from Domestic Violence Act of 2005, the Bharatiya Nagarik Suraksha Sanhita of 2023, the Hindu Adoption and Maintenance Act of 1956, and the Special marriage Act of 1954 is on husbands providing alimony to their wives.
"A husband can get alimony only under exceptional circumstances. He must prove in court that he was financially dependent on his wife due to a valid reason, such as a disability preventing him from earning. However, courts are often reluctant to grant alimony to men, and such cases are handled strictly based on facts," Mohanty said.
How is Alimony Calculated In Other Countries?
Every nation calculates alimony differently; some utilize rigid formulae, while others employ more general rules.
"Some jurisdictions in nations like the US employ formulae, while others take into account a number of variables, such as income, length of marriage, and both couples' earning potential. According to Anshuman Singh, Advocate-on-Record at the patna High court, "courts in the united kingdom prioritize fairness, guaranteeing that both spouses maintain a reasonable standard of living."
Short-term financial help is prioritized in european nations like france and Germany. Since both parties are expected to be self-sufficient, alimony is rarely granted in Scandinavian nations.
Alimony is rare in china and japan and often entails one-time payments. Alimony in Sharia-compliant Middle Eastern nations is often just during the waiting time following a divorce, he said.
In Western nations, alimony rules are frequently formula-driven and gender-neutral. Instead of making lifelong payments, courts in these nations usually offer one-time settlements.
Meanwhile, indian courts focus on the husband's income and the wife's dependency, following a case-by-case approach.
"India follows a fault-based divorce system, where the wife often receives the court's first sympathy, and the husband must prove specific charges like cruelty or adultery. In contrast, many Western countries follow a no-fault divorce system, where courts take a more neutral approach. indian courts can grant alimony either as a lump sum or as monthly payments, depending on the case," Singh added.
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