Streamline your tax compliance with our expert-assisted GSTR 9 & 9C services @ ₹14,999/-

Tax efficiency, interest avoidance, and financial control with advance payment @ 4999/-
Divorce

How to Calculate Alimony in a Mutual Consent Divorce: A Simplified Guide

Alimony is the baseline sum that needs to be granted to the spouse for financial support, according to the Supreme Court of India.

If the parties are pursuing a divorce by mutual consent, they may agree to settle the alimony. A specific sum of money may be paid by one spouse to the other (regardless of their gender) following the terms of the agreement. The sum to be given is determined by many factors, including the individuals’ personal income and the property they own, among several other factors.

The court can finalise divorce by mutual consent within six months, but spouses could not submit a petition in this type of matter during the first year of their marriage. Additionally, there must be a six-month interval between the first and second motions. In exceptional circumstances, the court may waive this appeals process. So it often takes 18 to 20 months for a divorce to be finalised with mutual consent.

What Is Alimony & to Whom Is It Granted?

A partner incapable of supporting themselves may be awarded it from the other partner after or during the divorce process. The earning capacity of the working partner determines the recipient’s entitlement to alimony. A partner, children, if minor, or even penniless parents could be the receiver. In simple terms, it can be described as financial assistance.

What Do the Laws Say?

Our societal structure has five main religious groups: Jews, Christians, Parsis, Muslims, and Hindus. Every community has unique laws that are based on its traditions and customs. Therefore, the reasons for demanding money can vary based on religion.

Likewise, different personal laws have various provisions for alimony and financial aid. For instance, both spouses have the right to request ongoing maintenance and alimony as per the Hindu Marriage Act, 1955. However, only the woman is eligible to request lifelong Alimony and Maintenance if the couple gets married as per the Special Marriage Act of 1954.

According to Section 25 of the Hindu Marriage Act, 1955, a man or a woman may receive perpetual money from the court for their maintenance and care. If a couple has earning disparities, the wife will be entitled to alimony for her maintenance.

If the wife isn’t employed, the judge will assess her age, educational background, and earning potential while determining how much alimony to be granted. The court grants maintenance to the husband if he is disabled and incapable of work while the wife is employed.

What Happens in the Case of Mutual Consent Divorce?

The couple must decide by the agreement whether maintenance will be paid to or received by any spouse in case of a divorce by mutual consent. In these situations, the husband may give alimony or maintenance to the wife or vice versa, depending on the agreement. By the couple’s contract, the court grants a divorce. The pair is bound by the judgement, which can also be put into effect by the court.

In contested cases, the court determines whether to grant alimony based on the individual circumstances in each case. The court may award alimony on any occasion; the wife does not need to get the decree for it to be granted. Even when a law is awarded to the husband, judges have the authority to award the wife maintenance. According to the details of the situation and conditions, the court may grant no alimony or maintenance to any partner. The sum of lifelong alimony is solely the decision of the court.

Click here to know more about mutual divorce process in india

How to Calculate Alimony?

The amount of alimony is not determined by any set formula or rigid guidelines. Maintenance may be paid periodically (such as monthly), or it may be paid all at once in the form of a lump-sum payment.

The baseline sum that needs to be given to the spouse if the alimony is paid every month is 25 per cent of the partner’s total monthly income, according to the Supreme Court of India. One-time payout amounts are not standardised; however, they often range between one-fifth and one-third of the partner’s total earnings.

You can use the calculation below to determine how much alimony you would get or pay. (However, this approach is not 100 per cent correct.)

  • Depending on the situation, you can determine the monthly alimony using either your spouse’s or your salary. You will need to figure out what 20 and 25 per cent of this salary will be because the monthly dividend amount may fall within this 20-25 per cent range.
  • Aggregate Alimony calculation: You’ll need your or your partner’s total income, as applicable. 

You need to determine 50 per cent and 1/5th of this total income. If your gross income is 100X, your lump sum payment for alimony could be anything from 33X to 20X.

Factors for Permanent Alimony/Maintenance for the Wife

  1. The Wife’s Fair Demands:

The term “desire” encompasses more than what is required to provide for and support the defendant’s wife’s survival. The requirements of a young child living with the mother are also considered, taking into account the partners’ positions and personal situations, the length of their relationship, the upkeep and education of their children, their ability to create income, and their future possibilities. A considerable amount of emphasis is put on the wife’s requested exemptions, in addition to the husband’s and wife’s health, age, debts, and responsibilities.

  1. The Husband’s Position and Status, His Earnings, His Property, and His Living Conditions:

The terms “status” and “position” reflect more on one’s financial situation than social standing. The most crucial considerations when determining a justifiable sum to be given as alimony or maintenance are income and financial situation.

Conclusion

The amount of alimony is determined by taking into account each party’s total monthly take-home pay before taxes, their educational qualifications, the length of their marriage, the number of children they have, and their age. The threshold for alimony has been set by the Supreme Court at 25% of the former partner’s net income. The Court additionally ruled that in order for a former partner to live a dignified life, they should receive 25% of the other party’s net income.

The standards for divorce alimony are the same for both parties, and in most cases, the wealthier party is expected to provide for the economically disadvantaged partner. 

Contact Vakilsearch and learn how much alimony you will get or will have to pay (according to your situation) with the help of their knowledgeable and experienced lawyers. 

Read More:


Subscribe to our newsletter blogs

Back to top button

Adblocker

Remove Adblocker Extension