Rebuilding Financial Independence After a Divorce
Despite India still having a relatively low divorce rates, currently standing at 13 per 1000 marriages, particular cities – Mumbai, Delhi, Bengaluru and Lucknow – have seen divorce applications double and, in some instances, triple. With these figures, putting finances in order should be something to prepare for when facing a divorce. Starting over from a financial point of view can be particularly tough, especially when there are shared assets involved. The process of splitting assets into two households can be both expensive and complicated. Whether you’re looking for a home loan repayment solution for a divorce to help rebuild your financial life or need to reevaluate taxes, the minefield of options worth considering is crucial to claiming financial independence after experiencing a divorce.
Start with a plan
Recommendations by the Law Commission stated that there is a need to recognise the role of women as having an equal share in a marriage and subsequently, all property should be shared equally after a divorce. Although not easy for divorced women in India, one of the first things anyone should do is evaluate living expenses in relation to income. This can include outstanding debts, any child support, mortgage, insurance policies, health care and any other monetary ties you had with a former partner. There will be many different aspects you shared with a previous spouse which you’re now facing alone, but the primary thing to do is work through them until you have set clear, achievable goals.
Be true to your cash flow
Since India’s divorce laws are largely dependant on religious communities and vary accordingly, in many instances, divorce procedures can be lengthy, so it pays to be financially prepared until a settlement is made. One way of avoiding debt after a divorce is to find ways to consolidate your debts through home, personal or divorce loans so that you are be able to minimize your monthly repayments to a more manageable option. Try to actively increase credit by paying bills on time and using a credit score to know where improvements can be made on spending.
Look to the future
Lawyers’ fees often depend upon the financial status of the party fighting the case and whether the divorce is contested or mutual, as well as money to facilitate court proceedings. As a consequence, getting a divorce in India can be an expensive process. If you’re in any doubt, seek help from a financial advisor, who will be able to offer valuable advice to someone in your situation. Your financial goals are likely to fluctuate in the beginning, and you’ll notice that some expenses will come and go, so it’s crucial you don’t take your eye off the bigger picture to keep control of where your money is going.
Whether you were involved in your marital finances or not, navigating the world of budgeting and planning after a divorce doesn’t need to be achieved overnight. Take your time, and you’ll soon find yourself back in the driver’s seat of your finances.