Investments to protect Finances against anticipated separation

880 votes

Inherited property is generally your separate property, but it may still be relevant for maintenance and child-support considerations. Proper documentation and advance financial planning are essential.

Advocate Nikhil Karwal LawRato

575 votes

The assets inherited by you from your late father and properties that are exclusively in your name generally retain their separate legal character, though the exact rights and claims, if any, will depend upon the nature of the asset, source of funds, and surrounding facts. Merely transferring or diverting assets with the intention of defeating a potential maintenance or matrimonial claim may create legal complications. It would be advisable to maintain proper documentation showing the source of funds, inheritance records, bank statements and ownership documents. Since you have two children, their welfare will also be a relevant consideration in any matrimonial proceedings. Before making any major investment, transfer, gift or restructuring of assets, obtain detailed legal advice after a complete review of your financial portfolio, inherited assets and family circumstances so that your interests and those of your children are adequately protected while remaining compliant with the law.

Advocate Kawaljit Singh Bhatia LawRato

661 votes

In anticipation of such a threat, you may divert your property and savings to your children or someone you trust, though you can also create a trust for the benefit of your children and there are many other options available to safeguard your valuable property, you may consult with our team for detailed analysis and discussion of your queries.

Advocate Avinash Gaur LawRato

580 votes

In any matrimonial dispute the entire bank transactions of the past 3 years and a detailed list of assets has to be produced by both the parties before the judge. So, avoid sudden gifting/ selling property at undervalue/ transferring to relatives etc., unless for a legitimate objective like pressing need of a relative. You should consider legitimate estate planning instead of a transaction that would appear to be fraudulent or attempt to defeat your wife's future claims . Firstly , avoid mixing inherited money and assets with your joint account or jointly owned assets with your wife (consider forming an HUF). Secondly you can make investments in mutual funds, PPF etc specifically for children. Thirdly you could also consider buying insurance policies naming your children as beneficiaries in order to secure their future. As a matter of abundant caution you could start preparing a list of your assets and your liabilities like home loans, loans for your children's education, medical expenses of your parents, existing EMIs etc. Also, start maintaining a record of your children's expenses like tuition fees, School expenses, medical expenses and other expenditures borne by you. This should be done in order to counter your wife's exaggerated claim for maintenance through your children. You should also start maintaining a record of your wife's consultancy income, ITR, bank statements etc. so that she does not undervalue the same during the proceedings. Also, start maintaining evidence if any, against your wife through WhatsApp conversations. Having said that there might be instances wherein the husband is not obligated to maintain his wife depending on the facts of the case -like adultery, desertion without sufficient reason (through WhatsApp messages you can show that you were willing to make this marriage work), remarriage by wife. On a separate note, because till the time the divorce proceedings are pending, or you are separated, she will be considered your wife. So, if you want that if something happens to you during the proceedings even then the property should not go to her, you should write a will.

Advocate Pragya Dhoundiyal LawRato

837 votes

To safeguard your and your children's interests, maintain proper records distinguishing inherited assets from self-acquired assets. Keep documentary evidence of inheritance, bank statements, investment records, and source of funds. You may make legitimate investments in your own name or create investments specifically for your children through lawful instruments such as education funds, fixed deposits, mutual funds, or other transparent financial products. If divorce or separation proceedings appear likely, consult a family law advocate before restructuring assets. Any asset planning should be genuine, commercially justifiable, and not intended to evade legal obligations. Since your son is 19 years old and your daughter is a minor, their educational and welfare needs will remain a significant consideration before the court while determining maintenance and financial responsibilities.

Advocate Shenoy Das LawRato