Alimony impact on men: Divorce is not only emotionally heavy, but it is one of the biggest financial tremors of life. This often ends your years of saving and changes the entire economic situation. Many people have to take loans to give alimony. This has come to light in a new study.
The new study of 1 Finance Magazine included 1,258 divorced or divorce processes from Tier 1 and Tier 2 cities. It clearly showed how deep the effect of divorce is, especially on men.
Did you know in the survey?
According to the survey, after divorce, men spend an average of 38% of their annual earnings on maintenance payment. About half (49%) of men said that they spent more than Rs 5 lakh in divorce expenses. At the same time, 42% of men had to take loans for ultimate or legal expenses. The most worrying thing is that 29% of the male -giving male’s net worth became negative after the settlement.
Experts say that if there is no preparation in advance, then such expenses can push your wealth creation plan back several years.
Preparation before marriage
According to Aditi Mohini, advocate of Bombay High Court and Family Court, Mumbai, partners should decide the rules related to money before marriage and keep them in writing. It should be decided how the earnings will be shared- fixed or based on ratio.
Joint account can be used for this and all common expenses should be from there. If a partner is not earning, then asset or insurance should be made in his name, so that his work is also recognized and his security remains.
Divorce preparation
Mohini says that before starting the divorce process, all assets, debt, earnings and potential ultimon/child support should be collected. Copy of essential documents should be kept safe. Apart from this, it is necessary to seek the help of a family lawyer and financial planner from the beginning, so that the rights can be reserved and the right plan of cash flow can be made.
Dispute on economic affairs
The survey of 1 Finance Magazine also revealed that economic equality is very important before marriage. 67% of the people said that there were frequent quarrels over money in their relationship. 43% cited financial inequality as a major reason for separation.
Deepika Narayan Bhardwaj NGO is the founder of absolutely justice foundation. He says, “Money plays a big role in marriage and that is why relationships break up quickly.” Many experts believe that if the partners keep pace on money matters at the beginning of the wedding, then the big financial burden can be avoided later.
How to make budget during divorce?
1. Prepare Divorce Emergency Fund: Start depositing liquid cash before starting the divorce process. Keep the cost of at least six months separate, so that legal fees, fare and other needs can be met.
2. Create a new monthly budget: Elimination takes a large part of earning. In such a situation, holidays, food and unnecessary expenses will have to be stopped for some time. Zero-based budgeting can help help, in which every rupee is fixed.
3. Priority to debt: If you have taken a loan for the ultimate, try to repay it quickly so that the interest does not increase. EMI’s burden can be reduced by balance transfer or partial prepament.
4. Protect retirement saving: Avoid withdrawing money from PF or long-term investment. Instead, see options like bridge loan or structured payout, so that the financial burden remains for a long time.
5. Take Financial Counseling: An experienced financial planner can help in creating your new financial strategy- whether it is rebuilding net worth or making an investment plan to save tax.
Also read: Adultery Law: What does law say about extramarital affair, wife will get alimony and right in husband’s property?