House Split In Divorce

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Half of the marriages in the USA 🇺🇸 end up in divorce.

You could argue that India 🇮🇳 is more family-oriented, has better culture and what not..the data shows that divorce has increased 50-60% in India especially in urban cities.

Women have become increasingly independent in the past few decades and are no longer obligated to stay in an unhappy marriage. This is a good thing.

But divorces can make your finances messy. Especially if you are the richer among the 2.

Imagine this, you bought a new house with your spouse under joint ownership. You contribute 75% of the EMI and 90% of the down payment coz you are well off. But 2 years later your spouse doesn’t love you coz the “feel” isn’t there anymore and files for divorce.

How much of the house do you think you can get?

75%? 90%?

Wrong!!

In the eyes of the law, joint ownership means 50-50. It doesn’t matter if your spouse didn’t contribute a single rupee to the EMIs. You lose 50%. That’s why they say marriage is the quickest way to cut your wealth by half.

How to avoid?

Prenups are illegal in India so that’s not an option.

You could mention in the property agreement exactly how much of the house you own based on the contribution. If you don’t mention that then the law assumes the default i.e. 50-50

You might say “Sharan how dare you talk about divorce and splitting of properties even in a committed relationship”. Well, that’s a conversation for another day. Until then, you can ask your divorced future self to thank me incase sh!t hits the fan :)
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#financewithsharan #couplefinances #divorce #moneytalks #personalfinance #financetips #investingforbeginners