• I am getting married - How to protect my assets from divorce in Future?

I am getting married soon.

I want to know if I want to protect my assets in future in case I get divorce.

Can I transfer my shares / mutual funds to my parents? Any tax obligations
Asked 4 years ago in Family Law
Religion: Hindu

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10 Answers

Not in every divorce case your assests get divided, it depends on situation to situation. As well as on guys income. If he is earning handsomely then your assets are safe. And secondly no need to disclose your assets to other party. 

Khyati Malik
Advocate, Bhopal
91 Answers
2 Consultations

The assets lying on your name will remain with you whether you are still married or divorced.

Your spouse cannot claim any share in it as a right at least not during your lifetime.

Your asssets will be safe and secured.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Yeah you can transfer the immovable/movable property in your parent's name. But your salary is to be seen by the court in case maintenance is demanded.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Yes you can transfer but you will have applicable tax obligations

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

You can transfer your shares , investments to your parents before your marriage 

 

for sale of shares , mutual funds you have to pay capital gains tax 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Dear Querist

It will be better to transfer the property in the name of your parents if you think that there will be an issue in future related to your matrimonial life.

 

Apart from the above, in case of dispute, your spouse, if not able to maintain herself/himself then only he/she can claim maintenance from you which will be 1/3 of your income and no part of your property can be shared with his/her.

The wife is only one exclusive right which is right to residence.

 

Feel Free to Call 

Nadeem Qureshi
Advocate, New Delhi
6348 Answers
302 Consultations

Dear Client,

Unlike some of the Western countries, pre-nuptial agreements do not provide strong protection in case of divorce in India.

You can create a family trust and transfer your assets to this trust. You can be the trustee as well as the beneficiary. After marriage, you can also add your wife and children as beneficiaries.

However, this is a costly affair and makes sense only in case your assets are substantial.

Strategies can differ from case to case.

Hope this helps.

Thankyou.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

1. As per Indian Law, wife is not entitled to husband's properties during  his lifetime. 

 

2. Wife is entitled to maintenance which will be around 1/3rd to 1/4th of husband's earnings, if the wife is not able to maintain herself as per the living standard of her husband.

 

3. If your assets/properties do not earn any revenue to be added to your monthly earnings, you can avoid transferring the same in the given circumstances  presuming divorce when  you are yet to be married. This thought might hamper your future matrimonial life.

Krishna Kishore Ganguly
Advocate, Kolkata
27703 Answers
726 Consultations

Sign a pre-nup agreement with your to be spouse.

 

The pre-nup has to be drafted by an expert lawyer.

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

- As per law, a wife having no right to claim over the property her husband or in-laws during the life time of her husband . 

- But, she can claim residential right from her husband with maintenance if dispute arose. 

- However, you can gift your property to your father after executing a gift deed for saving tax . 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

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