In the event of a separation, a major consideration for couples is the equitable division of assets. However, prior to contemplating divorce, it is advisable for couples to collaboratively invest in and accumulate assets in their marriage. Doing so can foster stability in the relationship and safeguard the well-being of both partners and their children.
Renowned divorce lawyer, Vandana Shah, who is currently handling the AR Rahman and Saira Banu divorce case, emphasizes that one common source of contention among couples is the concealment of assets during marriage.
During a recent conversation with actor R. Madhavan, Shah talks about the grey areas in a marriage that can lead to separation, prolonged legal battles. These can be pre-acquired loans, assets, lack of savings, and others.
She offers a distinctive viewpoint on the legal, emotional, and societal aspects of separation. Together, they address the difficulties that couples encounter in contemporary married life, the evolving attitudes towards divorce in Indian society, and the pathways to discovering optimism and meaning post-breakup.
Speaking about assets and the rights of couples in a marriage, Shah said, "I am currently handling a case where the husband did not disclose to his wife that he has no assets in his name. The flats are in his father's name, investments and mutual funds are in his mother's name, and savings are also in his mother's name. He earns a good salary of about Rs 15 lakh a month. We discovered that he has an SIP set up and around Rs 11 lakhs per month goes into these investments, leaving him with only Rs 4 lakh. My client, his wife, approached me for advice. She is considering leaving him. It is important to understand that these are real issues."
On asking whether one can safeguard himself or herself from such situations, Shah said: "After marriage, transparency about assets and salaries is very crucial for a healthy relationship. It is also important to disclose about each other's assets and liabilities. This conversation should happen for sure."
Delving more into the topic, Shah said that the couple should have joint accounts, properties, lockers, and assets as these are important for stability."
Talking about loans carried over before the marriage, Shah clearly said: "Loans acquired before the marriage should ideally remain with the individual and not with the couple. However, home loans are different. When it comes to home loans, you can involve your wife. She can become a joint signatory and joint owner of the house. This arrangement is fair."
Joint accounts, assets vs single ownership
Shah said: "I feel after 4-5 years, when you feel that the marriage will survive and you both have stable jobs, the couple can think of having a joint account where both can save a part of their salary for future use. I would never suggest to merge all accounts. four to five years time is a good period as that time they can plan for a child, which needs joint investment and big commitment. Gradually, after 10 years of marriage, one can merge 50% of their assets, but also keep something for themselves."
Shah further said that a couple, especially the woman, should have a third account to themselves to save in case they decide to separate and file for divorce.