Breaking up is never easy, and when it comes to divorce, the financial implications can be just as challenging as the emotional toll. The recent split between cricketer Yuzvendra Chahal and choreographer Dhanashree Verma is reportedly costing ₹4.75 crore in alimony, bringing attention to the financial realities of high-profile divorces.
However, alimony isn’t just about the amount—it’s also about how it is paid, as this directly affects taxation. In India, a lump sum alimony payment is tax-free for the recipient. However, if alimony is paid on a monthly or periodic basis, it is considered taxable income, meaning the recipient must pay taxes on it.
Property and asset transfers also come with tax implications. If assets such as real estate are transferred before the divorce is finalized, they may escape tax scrutiny. But if transferred afterward, the government may impose taxes on the transaction. Understanding these financial nuances is crucial for those going through a separation, as it can impact long-term financial stability.
High-profile divorces like Chahal and Dhanashree’s case highlight that divorce is not just an emotional decision—it is a significant financial one. Legal and financial advisors play a key role in ensuring that settlements are structured efficiently to minimize tax burdens while ensuring fair compensation.
As discussions around their separation continue, the case serves as a reminder that beyond the emotional challenges, financial planning is just as important when navigating a divorce.
