Going through a Divorce? Take these Crucial Financial Steps

Currently, the rate of divorce in India stands at less than 1%, a rate which is far better than that of the world. Worldwide census shows a rise of almost 250% in divorce rate since 1960. However, although this data indicates to a better family structure across the nation, it also makes Indians much less aware of the essential steps in case they are facing such a scenario.

Financial Steps

Divorce or separations are situations where individuals often face several challenges. Yet this is also the time when they must focus on their personal finances to ensure a secure future. While personal financial investments like FD come of great help for future financial backing, many other factors are crucial as well. These important factors to secure the finances of an individual who is going through divorce are discussed underneath.

Alimony and maintenance expenses –

Divorces involve numerous financial expenditures which are decided in court during the proceedings. It is important for divorcees to know their rights since a lot of financial issues are involved in such scenarios. Personal belongings cannot be claimed by the spouse during a divorce. For example, a gift received by a wife cannot be claimed by the husband after they separate.

Additionally, in case one of the spouses is not earning, alimony charges must be paid by the earning spouse. This can be a substantial amount paid on a periodic basis. Furthermore, the earning spouse must also pay for the education and other needs of their child. Returns from investments like Bajaj Fixed Deposit can be effectively used to clear the lump sum amount.

Personal financial details –

There are numerous layers of financial details related to an individual when he or she is going through a divorce. While accounts like fixed deposits are not handled under normal circumstances, joint saving accounts must be rearranged according to the financial settlement. Additionally, once alimony and maintenance expenses are included, the regular expense of the earning spouse will also go up. Consequently, it is important for such individuals to review their personal finances and plan afresh. Divorcees can consider investing in fixed deposit accounts which offer high FD rates in India so that they can cope with future expenses with ease.

Ownership of property –

According to the laws in India, ownership of the property is granted to the spouse whose name is on the deed. In case of joint ownership of a property, numerous other factors deciding the ownership rights come in as well. The court takes all relevant financial and asset-related details into account before deciding on ownership.
Subsequently, it is important for divorcees to discuss the property details and plan accordingly. It is best if both the spouses can come in mutual agreement before deciding on property ownership. Additionally, anyone considering to settle their alimony by mortgage should consider secured credits like loans against fixed deposits. Such financial products will help avoid the trouble of mortgaging a property with undecided ownership. Under such circumstances, accounts like Bajaj Fixed Deposit can be used to avail a loan and settle the alimony.

Nominee details and updates –

Savings accounts and property ownership usually comes with a nominee in case of the untimely demise of the concerned individual. While couples often choose each other as their nominees, it is important to consider new nominees in case of a divorce. Especially for divorcees in the later stages of their lives, it is important they look into what schemes they should invest in to plan their post-retirement life.

It is imperative for divorcees to take care of their finances during and after the process. Divorce involves numerous expenses which must be catered to even if that includes premature withdrawal of an individual’s FD account. Consequently, divorcees should not overlook their financial arrangement and cash flow as that would help them ensure a stablelife. Additionally, they should also look for investment options to ensure their child has a
secure future even after the divorce. Planning all expenses for higher education of the child along with necessary financial backing to tackle any unforeseen situation is necessary during such a situation.

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