The financial tips that women should keep in mind before a divorce.
Divorce can be painful but you should not let it wreck havoc with your finances. A woman should keep a few things in mind to ensure she is financially safe. This includes hiring a financial planner and gathering all the necessary documents. Here are six financial tips that women should keep in mind before a divorce.
Gather documents in time
The moment you realise that trouble is brewing in your marriage, get hold of all fi nancial documents, including salary statements, rent receipts, property documents, household items receipts, monthly spending proof, proof of asset ownership, etc. If you leave it for later, the husband may make it diffi cult for you to access these.
Identify all the assets like jewellery and household items in your name and put these away in a safe place, say, in your individual locker or with your parents.
Hire a financial planner before a lawyer
To ensure you get a fair maintenance, hire a financial planner before a divorce lawyer. It’s important you arrive at the right figure by taking into account inflation and future expenses to be able to maintain your lifestyle after divorce.
How a mother can financially protect her child in case of a divorce
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(Based on text by Riju Mehta)
In the bitter eventuality of a divorce, not only are the husband and wife involved but the harm spills over to the children as well. Parents have to ensure that their child's future and financial security are not compromised.
A mother can often get overwhelmed in this situation especially if she has not exercised much control over finances up until now. Going through a divorce can be painful but in such a sensitive time and delicate frame of mind, you must be mindful to not let it wreck havoc on your finances and jeopardize your kid's. Follow these five steps to ensure that your child is taken care of financially.
(Based on text by Riju Mehta)In the bitter eventuality of a divorce, not only are the husband and wife involved but the harm spills over to the children as well. Parents have to ensure that their chi..
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In case of a divorce with mutual consent, a good option is to set up a trust in which your child is the beneficiary. This will ensure that the child’s needs are taken care of in case either parent passes away.
In case of a divorce with mutual consent, a good option is to set up a trust in which your child is the beneficiary. This will ensure that the child’s needs are taken care of in case either parent pa..
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If the husband stops paying the premium for health insurance after divorce and you have the child’s custody, make sure you purchase a family floater plan of at least Rs 5 lakh which immediately starts covering yourself and the child.
If the husband stops paying the premium for health insurance after divorce and you have the child’s custody, make sure you purchase a family floater plan of at least Rs 5 lakh which immediately start..
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If you are the nominee in a life insurance plan bought by your ex-husband and he wants to discontinue premium payments, you both can decide to make the child the beneficiary with yourself I.e. the mother as a guardian. If the husband does not agree to this, it is a good idea to buy a life insurance plan immediately with the child as the nominee. You could then add up the premium expense in the alimony calculation.
If you are the nominee in a life insurance plan bought by your ex-husband and he wants to discontinue premium payments, you both can decide to make the child the beneficiary with yourself I.e. the mo..
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To decide the amount needed for the child and associate rearing activities, calculate the day-to-day expenses of bringing him/her up, expenses for studies, healthcare and entertainment/recreation till he/she turns 18 or starts earning. If you are to acquire a lump sum amount, factor in the long-term expenses for child’s higher education and wedding.
To decide the amount needed for the child and associate rearing activities, calculate the day-to-day expenses of bringing him/her up, expenses for studies, healthcare and entertainment/recreation til..
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Remember, alimony is separate from child support. In case of a contested divorce, make separate calculations for both and ensure you get an adequate amount for your child’s upbringing.
Remember, alimony is separate from child support. In case of a contested divorce, make separate calculations for both and ensure you get an adequate amount for your child’s upbringing.
It’s better to opt for a lump sum instead of a monthly payout because the former is non-taxable and rules out erosion of wealth due to inflation. If you opt for monthly payouts, ensure it is pegged to inflation and increases every year.
Maximise liquid assets, cut your liabilities
Try to get as many liquid assets as possible because it offers flexibility in rebooting your financial life after divorce. If you insist on securing a house but have no money for running the household, you will be in trouble.
Alimony & child maintenance are separate
Understand that the money you require for household expenses and maintaining your lifestyle is different from the money you will need to bring up your child. Factor in the future child goals like education and wedding expenses as well.
