How much does divorce cost in india?

One may dream at the beginning of marriage to have a lifelong partner, but the separation may cause a disaster that is much bigger than a broken heart. According to 1 Finance Magazine's new study, a divorce in India is linked to a heavy financial burden - a burden that many men fail to pay.

Divorce is not only emotionally exhausting but impos a great financial challenge to the divorced individuals. A survey of the lifestyles and expenses of 1,258 people who were divorced or were in the process of divorce from Tier 1 and Tier 2 cities, found that near about 49% of men reported spending of over ₹5 lakh on the divorce process while nearly 19% of women said similar

Furthermore, 42% of men had to avail loans for legal issues or for the payment of alimony whereas 29% of them were in a negative net worth position after meeting their financial obligations. Maintenance accounted for 38% of the average income of men, a contribution which made them borrow more frequently to cover the rest.

On the contrary, women were usually the winners in financial terms after a divorce. More than 53% of them got at least half of the husband's net worth, and 26% even got more than 100%, which visually represents that after separation the financial balance gets profoundly changed.

Money fights that Cause Divorce

The report also reveals what occurs ahead of the divorce - inside marriages where money becomes the battleground. Financial disagreements were at the forefront of the issues with 67% of respondents admitting to having frequent money-related arguments with their partners.

A large percentage of women (46%) had less financial independence after marriage as a result of them either quitting their jobs or reducing their working hours upon getting married. 56% of the women were in a lower income bracket than their husbands.

Household financial management was often the reflection of the traditional concept of gender roles, 43% of women reported that their husbands paid for everything, and 50% were in households where money was managed jointly. Yet, money disputes weren't just background noise, 43% of divorces were directly linked to financial incompatibility.

Keval Bhanushali, Co-founder & CEO of 1 Finance, summed it up:

Financial incompatibility is one of the main reasons that couples split up. What makes the problem even worse is that the costs of getting divorced just add to the financial instability the couple faces, thereby creating a vicious cycle.

Breaking the Taboo Around Money Talks

Talking about money for years was considered to be an uncomfortable topic in Indian relationships and was even regarded as a taboo. But the study has revealed that silence can be an expensive luxury.

Kanan Bahl, Editor-in-Chief of 1 Finance Magazine noted that:

The fact that financial disputes were a significant factor in divorce in nearly half the cases highlights the requirement of having clear agreements concerning debts, responsibilities, and lifestyle before marriage.

The report advises that the couples must cover the most important topics before deciding to get married such as debts, goals, family responsibilities, or acceptable lifestyles. While such dialogues may appear drastic and unromantic, they are capable of saving not only love but also a future financial crisis.

The Legal and Emotional Journey

Divorce in India that is under the Hindu Marriage Act of 1956 is, most of the time, a long and emotionally draining process. The length of the legal procedures can extend to several months or years that is more so in the case of child custody or financial appeal.

According to experts, a well-thought-out and peaceful parting not only makes the emotional discomfort less severe but also the financial and legal costs smaller. Mature conversation, mediation, and clear financial planning can help couples move forward with dignity.

The Bigger Picture

This research is like a wake-up call: Divorce in India is not just a personal crisis, it’s a financial earthquake. Those couples who take the economic aspects of marriage into account, open up financially and become financially literate, are the ones who have better chances to survive this crisis.

At the end, love might be priceless, but as this study implies, divorce definitely is not.