Stories
How to Get Your Finances Back on Track After a Divorce
- •Start by organizing your paperwork, including bank accounts, investments, loans, and tax records to clearly understand what you own, owe, and earn.
- •Rebuild your monthly budget based strictly on income currently available to you, factoring in major expenses like housing, childcare, and household bills.
- •Understand legal provisions regarding maintenance and alimony under laws like the Hindu Marriage Act and the Bharatiya Nagarik Suraksha Sanhita, 2023.
- •Ensure all assets such as property, jewellery, and investments are properly identified and addressed in the settlement before signing any documents.
- •Manage joint finances carefully by moving personal savings to accounts you control, while ensuring joint loans and liabilities are handled legally.
- •Rebuild your financial safety net with an emergency fund, updated health and life insurance, and thoughtful long-term planning for retirement and goals.
Key Questions Answered
Begin by gathering all financial paperwork, including bank accounts, investments, property, loans, credit cards, and tax records to understand what you own and owe. Establishing a clear monthly budget using only the income actually available to you is crucial.
Under the Hindu Marriage Act, courts can award interim maintenance and permanent alimony based on the income and property of both parties. Additionally, the Bharatiya Nagarik Suraksha Sanhita, 2023 provides for maintenance in eligible cases, such as for a divorced woman who has not remarried.
Review joint bank accounts, home loans, investments, insurance policies, and credit cards carefully. Move your salary and personal savings to accounts you control, but do not simply stop paying a joint loan without understanding your legal responsibilities and making formal changes through the lender.
