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What Women need to know to deal with divorce proceedings financially?

Securing Your Entitlements and Future

Financial Preparations

  • Gather all financial documents like bank statements, investment details, property papers, etc., to assess the overall financial situation.

    • As an NRI, consider how your assets, including property in India, are treated under inheritance tax in India for NRI.
    • If you have a trust with non-resident beneficiaries, it can help safeguard your assets in India.
  • Open separate bank accounts and credit cards in your own name to establish financial independence.

    • Trust registration can be a strategic move for NRIs to safeguard assets, especially when planning for future generations.
  • Secure your income sources and ensure you have access to funds for daily expenses.

    • Setting up a trust with non-resident beneficiaries can help manage your assets effectively.

Alimony and Child Support

  • You are entitled to alimony and child support from the husband based on his income and your standard of living during the marriage.

    • Consider how inheritance tax in India for NRI might affect your future income, especially if you inherit assets.
  • Alimony is usually 25% of the husband's net salary, while child support depends on the child's needs.

    • If you are an NRI, consider setting up a trust with non-resident beneficiaries to help manage your financial future.
  • Ensure the divorce settlement includes a clause for periodic review of alimony based on inflation and the husband's income growth.

    • Review how inheritance tax in India for OCI applies to you, particularly when planning for long-term financial stability.

Asset Division

  • You have equal rights over marital assets like property, vehicles, investments, etc., acquired during the marriage.

    • For NRIs, setting up a trust with non-resident beneficiaries can help manage and protect assets in India.
  • If the property is in the husband's name but you have financially contributed, you can claim a share.

    • Consider trust registration to protect your share of marital assets and minimize complications.
  • Jewellery and gifts given to you by your parents are your exclusive property.

Financial Planning

  • Consult a financial planner to restructure your finances post-divorce and plan for your future goals.

    • Understanding inheritance tax in India for NRI rules will help ensure long-term financial security.
  • Ensure you have adequate life and health insurance coverage for yourself and your children.

    • Consider registering a trust using power of attorney to manage your assets in India efficiently.
  • Invest prudently to build a corpus for your long-term financial security.

    • Trust registration can further secure your estate and reduce the impact of taxes, especially regarding inheritance tax in India for OCI.

Also Read: How are property, jewellery divided after a divorce in India for husband?

 

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