• Mutual divorce but home loan on both names

Me and my wife agreed for mutual divorce. But we have a house, registree aNd home loan on both names, me as first holder and my wife as second holder. 
Since entire money is paid by me till date and I am only paying emis, my wife has agreed to surrender this property and transfer to Me fully in consideration of 10 lakh for divorce. 
My question is : 1. The house is on Home loan on me and my wife name from Hdfc, hence original papers are with bank and photocopies with me. Loan will over in 2024 only. Can I get the house in my name, how can my wife surrender or gift me house with home loan going on. 
2. Will bank remove my wife name from Home loan. 
I cannot pay entire due amount instantly and want house to be transferred to my name with home loan going on as till date. Till date all emis are paid by me only and my bank account is mapped for ecs
Asked 4 years ago in Family Law
Religion: Hindu

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20 Answers

1. Since your wife is joint owner of the property to make you its sole owner she will have to make a registered deed of gift in your name to release her share.

2.Since the proeprty is mortgaged with the bank you will have to inform the bank on this development. If you are the sole person who is paying the EMI then bank willnot pose any problem to make this gift deed.

3.Once this os done your wife will be removed from the bank loan agreement as its sjoint borrower or loan applicant.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

Respected sir ..

1- This is quite a simple procedure you have to obtain ..Sir just go to bank and tell the that second holder wants to transfer there right ..They will give you N.O.C after getting your noc your transfer deed will easily be cleared ..

2-yes bank will remove her name and it will be much better for you to avoid future problem just get it done howso it is possible because it will not take too much time for change the mind of a women ..

Sir by doing this you are getting the soul ownership she will not entitle to claim anything in future ..It will be will btr for you in future prospect..So let it done ..

Thank you

Dinesh Sharawat
Advocate, Delhi
1258 Answers
12 Consultations

4.9 on 5.0

1. She can make a relinquishment deed and thereupon relinquish here share upon you.

2. Yes in furtherance of the said deed the bank will.

And make a mention of this in the divorce terms also.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Wife can execute relinquishment deed for her 50 per cent share in flat

2) relinquishment deed should be stamped and registered

3) request bank to remove wife name from home loan

Ajay Sethi
Advocate, Mumbai
87911 Answers
6207 Consultations

5.0 on 5.0

Don’t make any cash payment

Alimony amount received by wife is tax free

Make payment t by cheque only

Ajay Sethi
Advocate, Mumbai
87911 Answers
6207 Consultations

5.0 on 5.0

Respected sir ...

The alimony you are giving is a such amount of consideration which you are giving just to dissolve marriage in this circumstances you can not impose such tax an all and yes it will be much better to give D.D for such ammount ....Sir don't think of these 10 lacks just think that by giving just 10 lacks you are going to escape from all harrashmet which is physically or mentally ..No need to worry you are just doing an owsome deal here just go ahead for it ...

Thank you

Dinesh Sharawat
Advocate, Delhi
1258 Answers
12 Consultations

4.9 on 5.0

One is liable to pay tax irrespective of mode of payment to her.probably she would try to evade tax taking advantage of lack of documentary evidence of such payment.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

1) As original papers are with bank, so as if now you can just make gift deed of flat along with the loan title on your name.

2) Tax will be dedicated for per month aa, while one time it will not see below judgement passed by high court.

TAXABILITY

To return to the question of taxability, though alimony cannot be said to arise from any particular “source” or be treated as a consideration for any past service, business or vocation, it is taxable in the hands of the recipient as per the ruling of the Mumbai High Court. The judgment concludes that monthly alimony received by a divorcee from an estranged spouse will remain taxable, while a one-time alimony payment will be a capital receipt and won't be taxable.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

Dear Sir,

My answers are as follows:

1. The house is on Home loan on me and my wife name from Hdfc, hence original papers are with bank and photocopies with me. Loan will over in 2024 only. Can I get the house in my name, how can my wife surrender or gift me house with home loan going on.

Ans: As on today neither of you are owners of the house as such question of executing gift deed does not arise. You may entire into Memorandum of Understanding and your wife must convince the bankers to withdraw from home loan.

2. Will bank remove my wife name from Home loan.

I cannot pay entire due amount instantly and want house to be transferred to my name with home loan going on as till date. Till date all emis are paid by me only and my bank account is mapped for ecs

Ans: Get some other surety/security as may advised by bankers and continue to pay EMI’s by yourself thus exclude joint ownership of your wife.

Finally you may give cash before the Court and Court will record the same in its order sheet which will be a strong evidence for you in future. It is better to proceed for divorce by paying 10 lakhs or else your wife may increase it to 20 lakhs.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

I would not advise you to give alimony in cash because in that case she may claim it again at any time.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

The lum sum amount that is 10 lakh alimony will not be taxable as it will not fall under defination of income under income tax act. It will be a capital receipt and it will not be taxable.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. Wife may transfer her share in this house to you by means of a gift or relinquishment deed.

2. Yes, the bank will do that. Make an application for removal of your wife's name as a co-borrower. Do this once she relinquishes her share in this house in your favor.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

It is not advisable to give 10lacs in cash to her.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Dear Client,

Through registered relinquishment/release deed ( Haq Tyag), her share will transfer in u. Copy of sale deed only, original not required.

If u r willing to accept loan payment liability absolutely on u, bank may remove her name. Even if not, no consequences. Just keep a record of payment made by you.

No tax on alimony, until not shown in her returns. Record the above fact in mutual consent order under settlement as a proof of payment.

Contact for legal assistance in Jaipur.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

She can relinquish her right by executing a Registered relinquishment deed as well as gift her share by registered gift deed. Once this draft is executed and registered the bank will process the same in your sole name.

Prashant Nayak
Advocate, Mumbai
27245 Answers
88 Consultations

4.4 on 5.0

My question is : 1. The house is on Home loan on me and my wife name from Hdfc, hence original papers are with bank and photocopies with me. Loan will over in 2024 only. Can I get the house in my name, how can my wife surrender or gift me house with home loan going on.

Ans: (1)At present the house in owned by you both jointly, hence you are owner of house in equal share i.e. 1/2 share each. Get a relinquishment deed executed and registered in your favour from your wife in the office of concerned sub registrar for a consideration of Rs.10.00 lakh. Submit the original Relinquishment Deed with HDFC bank with the request to transfer the home loan only in your name as she has relinquished her share in your favour and she is no more your wife. You may deposit the original Relinquishment Deed with the Bank after passing the Second Motion with a copy of decree for divorce.

2. Will bank remove my wife name from Home loan.

Ans. (s) Yes. Bank would have no option but to accept your request.

When you are showing the amount in relinquishment deed and you are showing the money in your account to whom it is paid, you can pay either in cash or by cheque. It is for her to show where from Rs.10.00 lakh has come.

Dalip Singh
Advocate, New Delhi
1039 Answers
36 Consultations

5.0 on 5.0

Hi,

In the present circumstances you are suggested to applying the bank - HDFC to remove the name of your wife from the list of borrower and the same is done after some paper formalities. Also don't pay any money of alimony in cash and pay by medium of cheque or DD.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

1. Your wife can execute a registered gift deed in your favor but before that she may have to obtain NOC from the bank.

The bank will demand any other person as co-applicant for replacement with equal surety and to fulfill other formalities in this regard.

2. You may follow the procedures as required for replacing her name with some other's name.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

One more query. She wants 10 lakh alimony in cash as my wife does not want tax to be deducted. Is tax applicable on money that I give for divorce. Also is it advisable to give alimony in cash. Pls suggest

You dont give that money by cash, you may give it to her by cheque or DD payment, so that you can account it safely for your IT purpose.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

As per the present rule of the RBI you can not pay more then 2 lakhs in cash so please pay the alimony in cheque or DD.

She should execute and register a release deed in your favour with respect to the house.

Based on the divorce and release deed executed by your wife Bank can withdraw your wife as co-owner of the property and you will be the solo owner of the house.

Rajashekar
Advocate, Bangalore
584 Answers
4 Consultations

4.8 on 5.0

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