Divorce dispute turns into legal battle: The financial costs a husband may face

Less than six months into his marriage, Vineet Singh knew it had begun to unravel. Frequent fights over money often ended with his wife threatening to leave him. She eventually did, just short of their first wedding anniversary. Soon after, she filed three cases, including one under Section 498A (Section 85 under the Bharatiya Nyaya Sanhita, 2023), against him. He was arrested, jailed, and for the next 10 years, paid her Rs.10,000 a month as maintenance. Nearly 15 years and a cancelled PhD later, his wife is refusing to divorce or withdraw the case till he pays a lump sum of Rs.50 lakh. “I’ve spent lakhs on lawyers’ fees, maintenance, and court visits, and my career has been severely impacted,” claims Singh.

Like Singh, many men find it difficult to muster such high amounts for a one-time settlement, or face financial costs, defamation, and career setbacks after their wives seek legal action. Matrimonial disputes can outlast the marriage itself, and cost far more—legal fees that run for years, alimony demands that can touch crores of rupees, and savings that are put at risk. In several cases, laws meant to protect women are being misused to extract these costs from husbands. Here’s what men need to know to protect their finances.

LEGAL ASPECT:

Misuse & recourse


A bevy of laws—dowry harassment under Section 498A, Protection of Women from Domestic Violence Act, 2005, Dowry Prohibition Act, 1961, and Criminal Procedure Code under Section 125 (Section 144 under BNS)—has been framed over the years to protect women from dowry harass ment and ill-treatment by in-laws and husband. However, in some reported cases these laws have been misused by women, a development flagged by the Supreme Court and high courts in recent years.

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“Dowry harassment case is among the most misused under Section 498A, but after the 2014 judgment in the Arnesh Kumar v. State of Bihar case (the Supreme Court ruled that police cannot make automatic arrests where punishment is less than seven years in prison), and abolition of Section 377, women are now filing cases of a sexual nature against the in-laws. Most domestic violence cases for maintenance are filed under Section 144 of the BNS and Section 24 of the Hindu Marriage Act 1955,” says Shonee Kapoor, men’s rights activist and legal consultant.

Typically, lawyers suggest a package of 4-5 cases to wives to pressure the spouse into submission and settlement. “This is not only to harass him because he will have to engage a lawyer to appear in five different courtrooms (divorce in family court, Sec 498A in magistrate’s court, POCSO in special court) on different dates, but also to ensure that maintenance will come from at least one case,” says advocate Prashant Mendiratta, Vice President and Founding Member, Delhi Family Lawyers Association.

When cases are filed, most men panic. They react emotionally, rather than legally, and threaten their wives, complicating their own cases. “It’s important not to abuse them, repeatedly visit the matrimonial home, threaten suicide or self-harm, post allegations on social media, or manufacture evidence,” says Rohan Mahajan, Founder, LawRato.com. Instead, save the messages and e-mails that counter the allegations.

The first step should be to hire a lawyer specialising in matrimonial cases. “The legal route for men is different from the one available under the Protection of Women from Domestic Violence Act, which is a gender-specific legislation; it does not provide a mirror image proceeding under which a husband can file a case against his wife,” says Mahajan.

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This does not mean a man is without remedies, especially in case of false allegations or defamation. “One can file counter cases for perjury, malicious prosecution, and civil suits for damages,” says Mendiratta. Agrees Delhi-based Siddharth Kumar who had cases of domestic violence and harassment filed against him, but managed to win an acquittal over 4-5 years of draining court hearings. “If you know the cases are false, it’s important to prosecute and go through the trial to prove your innocence. I persisted because I knew there was no evidence against me and finally won, paying only a fraction of the alimony that was demanded,” says the 43-year-old.

The problem is that very few cases reach a full trial and end in acquittal or conviction. Most men opt for a settlement under pressure from families, lawyers and judges. So even if the case is fake, they do not wait for acquittal. “Not more than 5% of cases run the full trial cycle, and 95% are settled,” says Kapoor.

SIDDHARTH KUMAR 43, DELHI

Separation after: 13 years of marriage

Case file

*Several cases, including domestic violence, led against him.

*No contact allowed with kids.

*Social defamation & isolation.

*Had to visit the police station & attend court hearings during Covid.

*Wife asked for Rs.1 crore as settlement.

ALIMONY PAID: Rs.10 lakh

CURRENT STATUS: Divorced

If your wife files a case against you…

Do this immediately…

Hire a lawyer specialising in matrimonial cases.

Apply for anticipatory bail, if required.

Collect evidence to counter allegations in the form of text messages, WhatsApp chats, call logs, e-mails, videos and social media posts.

Consult lawyer if FIRs against you can Consult with lawyer if FIRs against you can be quashed in a higher court.

File for divorce.

Cooperate in all legal proceedings, and attend all court hearings and mediation sessions.

Never do this…

Do not threaten, intimidate or abuse the wife on the phone, or through text messages, or harm her physically.

Do not put up posts on social media defaming her or her family.

Don’t agree to a settlement in panic.

Don’t move, transfer or hide property and assets.

ALSO READ | Mutual consent vs contested divorce in India: Process, costs, time duration and legal requirements compared

FINANCIAL ASPECT:

Mistakes & planning

Settlement means either a one-time lump sum as alimony or periodic payments. Add to it litigation expenses and the process can be financially draining. “Depending on the facts and personal law applicable, a husband may face claims for interim maintenance, litigation expenses, maintenance for chil dren, permanent alimony and expenses related to kids’ education and healthcare,” says Mahajan. So prepare financially for litigation from day one and make a realistic assessment of income, liabilities and potential maintenance, he advises.

SETTLEMENT: The court does not simply apply a mechanical percentage of the husband’s salary, but considers the income and earning capacity of both parties, reasonable needs, li abilities, dependants, standard of living and the overall financial circumstances.

Most men prefer a one-time settlement, especially if there are no kids, since they don’t want a prolonged association with the spouse. “However, if there is a child and the husband is looking for visitations, then monthly maintenance is best suited. If the husband is giving up rights over the child and not seeking visitation, one-time settlement is better,” says Mendiratta.

Kumar, however, chose a one-time settlement despite having two kids. “I did not want a long-term association with my wife, and since I had won an acquittal, I managed to bring down the settlement amount considerably,” he says.

From a financial perspective, the two structures create very different cash-flow profiles. A one-time settlement leads to a significant, immediate liquidity requirement, but provides greater certainty about the future liability. “Recurring maintenance, on the other hand, creates an ongoing cash-flow obligation. The immediate liquidity need may be lower, but the husband needs to ensure that the future income can support the payments while continuing to meet his living expenses, taxes, debt obligations and retirement goals,” says Sripal Jain, Co-founder, Simandhar Education.

Therefore, one needs to consider how much liquid capital is available, which assets may need to be sold, the tax implications, and the post-settlement investment and retirement corpus needed. “If you realise that there is a problem in the marriage, contact a lawyer and a financial planner, and start planning your finances immediately, instead of waiting till the separation,” says Dinesh Rohira, CEO, 5nance.com.

How your finances can be impacted

How are one-time payment & recurring alimony taxed?

While lump-sum payment is tax-free, recurring alimony is taxed at slab rate as ‘Income from other sources’.

Can a wife claim a jointly owned property if the husband has paid for it?

If the wife hasn’t paid for the house but is mentioned as a joint owner in the title deed, each spouse holds the share as stated in the deed. If the deed is silent about the share, courts generally presume a 50-50 split, irrespective of who funded the purchase.

Do kids have a stake in the father’s ancestral property?

Yes, children have a right by birth to their father’s ancestral property even if the parents are divorced.

Should men transfer property, assets to relatives?

Transferring property or assets to family members or hiding income is legally not advisable as it can have a negative impact on the husband in court.

Can men claim maintenance?

Though several Sections allow men to seek maintenance under specific circumstances, like disability, illness or inability to earn, it’s rarely granted in reality.

What happens to joint home loans?

Irrespective of the couple’s marital status, the borrower(s) will be liable to repay the loan. The couple can decide to sell the property to repay the loan, transfer one spouse’s name from the title to the other, or remove it, and refinance the loan.

VINEET SINGH

39, JAIPUR

Separation after: 1 year of marriage

Case file

*Wife led case under Sec 498A; Singh arrested, jailed

*Wife demanding Rs.50 lakh.

*PhD cancelled due to case.

*Alleged domestic abuse

*Social defamation & isolation.

ALIMONY PAID

Rs.10,000 a month for 10 years

CURRENT STATUS: Wife refusing divorce till Rs.50 lakh is paid as a lump sum

FINANCIAL MISTAKES: One of the biggest mistakes is making emotional financial decisions during separation, before a main tenance order is even in place. This includes abruptly cutting off household money a hus band provides to the wife, transferring assets to relatives, hiding income and closing bank accounts, creating fake liabilities, fabricat ing income tax returns, or withdrawing large sums from joint accounts. Such conduct can seriously damage credibility and have consequences in maintenance proceedings.

“They may consider reducing the amount, but completely choking her financially gives a huge cause of action to the wife. If they ask parents to disown them or transfer properties to their kin, the courts usually see through it and may view it seriously,” says Mendiratta.

Another mistake is underestimating the cost of supporting two households. “The expenses that were earlier shared—rent or housing costs, utilities, insurance, children’s expenses and household commitments—may become separate obligations,” says Jain. So it’s important to prepare a realistic cash-flow statement that covers income, essential expenses, existing EMIs, insurance premiums, children’s expenses and potential legal costs before making a major financial decision.

PROPERTY MANAGEMENT: Property is typically one of the biggest bones of contention in a marital dispute, especially if it is jointly owned and bought with a home loan. If jointly owned, each spouse holds the share as stated in the title deed. “Where the deed is silent, courts generally presume a 50-50 split, irrespective of who funded the purchase or paid the loan. Paying the EMI does not, by itself, alter the ownership share,” says Raj Lakhotia, Managing Partner, LABH & Associates.

If, however, the property is paid for by the husband and is in his name, the wife cannot stake a claim to it as an owner. If both the spouses have paid for the house, they can seek reimbursement, adjustment, or a larger share via a civil suit. “For a spouse who has serviced the loan on a jointly owned property, the realistic options include negotiating a buyout of the co-owner’s share; seeking a partition, forcing a sale, and dividing the proceeds as per the title share; and settling the matter through mutual consent divorce,” says Lakhotia, adding that mutual consent remains the fastest and least contentious route.

It is important that you preserve the prop erty documents at the time of acquisition, in cluding a co-ownership agreement or a clear written record of contribution share.

ESTATE PLANNING: A big mistake is assuming divorce automatically takes care of succession planning. “The husband should review his will, nominations, insurance, investments and children’s inheritance arrangements after the divorce,” says Mahajan. Many men also wrongly assume that changing a nominee decides who will inherit the asset. “Nomination and succession are legally distinct concepts, and a nominee does not necessarily become the beneficial owner,” says Lakhotia. Men also tend to overlook their children’s position while restructuring their estate, especially if they are minor or assets are held jointly with their former spouse.

INSURANCE PLANNING: During separation, the husband should continue paying insurance premiums and reconsider these only after the divorce. “The amount is not too significant for you to take this step, and suddenly discontinuing the premiums may not go down well with the courts,” says Rohira. After separation, you can surrender the policies and buy new ones without dependants (if there are no kids) and carry out nominee changes.

(Names changed to protect identities. No case has been independently verified by ET Wealth. For women’s financial rights in a divorce, check stories at https://tinyurl. com/5afumbn5, https://tinyurl.com/bde9x26v)