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Subhash
Subhash
Ramalingam

Ramalingam Kalirajan5055 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2024

Asked on - Jun 26, 2024Hindi

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Money
I am Avinash, married to a lady six years before and now filed divorce petition. We have house in the joint name booked in 2022 with wife a first owner with 50:50 stake and both of us paying EMI'S regularly till now. The likely possession is by end Dec,2024. What happens to the house in case of divorce?
Ans: Avinash, you are currently going through a divorce, and the house in question is jointly owned, with your wife as the first owner. Both of you have a 50:50 stake in the property and have been paying the EMIs together. The possession of the house is expected by the end of December 2024. This situation brings up several questions regarding the future of the house and your financial obligations.

Legal and Financial Implications of Joint Ownership
Joint Ownership in Divorce
In the case of a divorce, jointly owned property can complicate matters. Since both of you have a 50:50 stake, the ownership and financial responsibilities will need to be addressed during the divorce proceedings. The court will consider various factors before deciding on the division of property, including:

Contributions to the property (financial and non-financial)
Length of the marriage
Financial status of both parties
Any agreements or settlements made between you and your spouse
Potential Outcomes
Selling the Property
One common resolution is to sell the property and split the proceeds. This can simplify matters as it converts the shared asset into liquid cash that can be divided. However, this option depends on market conditions and the ability to find a buyer.

One Party Buys Out the Other
Another option is for one party to buy out the other's share of the property. This means that one person will take full ownership of the house and continue to pay the EMIs, while the other receives a lump sum payment equivalent to their share. This requires the financial capability to manage the EMIs and provide the buyout amount.

Continuing Joint Ownership
In some cases, ex-spouses might agree to continue joint ownership. This can be practical if there are children involved and the house is intended to provide stability. However, this arrangement requires a clear agreement on how costs and responsibilities will be shared.

Legal Settlement
The court may also decide on a specific arrangement based on fairness and the individual circumstances of the divorce. This could involve a combination of the above solutions or a unique settlement.

Financial Considerations
Loan Repayment
If the property is sold or one party buys out the other, the outstanding loan needs to be settled. The sale proceeds or the buyout amount can be used to pay off the loan. If joint ownership continues, both parties need to agree on how to handle the EMIs.

Tax Implications
Transferring property ownership or selling it can have tax implications. Capital gains tax might be applicable on the sale of the property. Consult a tax advisor to understand the tax liabilities and plan accordingly.

Steps to Take
Consult a Lawyer
Engage a lawyer who specializes in divorce and property matters. They can provide legal advice tailored to your situation and represent your interests in court.

Evaluate Financial Capability
Assess your financial situation to determine if you can buy out your spouse or if selling the property is a better option. Consider your ability to handle EMIs and other related expenses.

Negotiate with Your Spouse
If possible, try to negotiate a settlement with your spouse. An amicable agreement can save time, legal fees, and emotional stress. Mediation can also be a helpful process to reach a mutual decision.

Plan for the Future
Regardless of the outcome, plan for your future living arrangements and financial stability. Ensure you have a clear understanding of your financial responsibilities and have a budget in place.

Final Insights
Going through a divorce is challenging, especially when property is involved. Understanding the legal and financial implications can help you make informed decisions. Consult with a lawyer and a certified financial planner to navigate this process smoothly. Consider all options, from selling the property to buying out your spouse, and choose the one that best suits your situation. Planning ahead and seeking professional advice will ensure a fair and manageable resolution.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
(more)
Anu

Anu Krishna1044 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Sep 11, 2023

Asked on - Sep 09, 2023Hindi

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Relationship
I am 64, retired living in own house together with wife, son and daughter -in law for last five years. Both, son and daughter are professionally qualified, well placed and earn good. The daughter - in law out of last five years stayed away for half the time for one reason or the other at her mother place. She is very egoistic and arrogant and fight with everyone in family for no great reason including, son and my married daughter whenever she comes to our place to meet us. She has an objection her coming to our place. She has ones threatened us of complaining to police and women organization, Stree Mukti Sanghatana. She makes mountain out of anthill every time so we have stopped talking to her. The couple is staying with us, we bear all family expenses and don't expect even a penny from both son and Daughter in - law as ,when ones money of Rs. 15 K was asked to, she refused and made an allegation that we want dowry in this form . Son help us with some monthly expenses every month. She is staying alone away from us for more than 6 months now. My son is also tired of her behavior. We even have approached her mother, she also keep hand on deaf ears as she also does not listen to her and one brother. Please advice, what do we do in the circumstances?
Ans: Dear Subhash,
Kindly convey to your son and daughter-in-law that they live in a separate house. (This is a suggestion but you know your family better; so act accordingly). This will not only give them the space but will also keep finances separate between you and your son. Sometimes a joint family system does not work for all families and this space of separation can help resolve differences or bring the emotions to a neutral place. Either case, at least you and your wife need not go through stress everyday.
Distance helps bring people together and too much of familiarity is only making it worse. Do try this and hope things settle soon.

All the best!
(more)
Anu

Anu Krishna1044 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Sep 11, 2023

Asked on - Sep 09, 2023Hindi

Listen
Relationship
I am 64, retired living in own house together with wife, son and daughter -in law for last five years. Both, son and daughter are professionally qualified, well placed and earn good. The daughter - in law out of last five years stayed away for half the time for one reason or the other at her mother place. She is very egoistic and arrogant and fight with everyone in family for no great reason including, son and my married daughter whenever she comes to our place to meet us. She has an objection her coming to our place. She has ones threatened us of complaining to police and women organization, Stree Mukti Sanghatana. She makes mountain out of anthill every time so we have stopped talking to her. The couple is staying with us, we bear all family expenses and don't expect even a penny from both son and Daughter in - law as ,when ones money of Rs. 15 K was asked to, she refused and made an allegation that we want dowry in this form . Son help us with some monthly expenses every month. She is staying alone away from us for more than 6 months now. My son is also tired of her behavior. We even have approached her mother, she also keep hand on deaf ears as she also does not listen to her and one brother. Please advice, what do we do in the circumstances?
Ans: Dear Subhash,
Kindly convey to your son and daughter-in-law that they live in a separate house. (This is a suggestion but you know your family better; so act accordingly). This will not only give them the space but will also keep finances separate between you and your son. Sometimes a joint family system does not work for all families and this space of separation can help resolve differences or bring the emotions to a neutral place. Either case, at least you and your wife need not go through stress everyday.
Distance helps bring people together and too much of familiarity is only making it worse. Do try this and hope things settle soon.

All the best!
(more)
Anu

Anu Krishna1044 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Mar 03, 2023

Asked on - Mar 01, 2023Hindi

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Relationship
Mam, I am retired father in law and financial well off. My son got married five years back. It is arranged marriage through matrimony. My son and daughter in law are both post degree qualified and well placed and staying with us. We tried asking for some money from both of them for monthly family expenses after two years of marriage which daughter in law refused and said you want dowry in this form, she record conversations, threat us of stree mukti, of police complaint , object our daughter visiting our place, blames us etc. Very often, she fight with her husband as well. We are only in reactive mode every time and accommodate her. Nowadays, she has started demanding the money spent by her mother in marriage and frequently leave our house and stay with her mother. We are afraid that she does not fake complain and harrasss us. Does not have any respect to relation, relatives, isolated /self centric, high ego and make other irritate type of personality, thinks of herself, does not believe that there is world outside. Please advise.
Ans: Dear Subhash,
Since I only have your version of the story, I can only assume that you are going through a rough patch. But I do believe it takes two sides in any story. Why is it that your daughter-in-law wants to all of a sudden behave this way? Were things fine in the initial years of marriage?
Why the sudden demand of money from you when you say that she is well-placed? Surely something seems amiss here.
Anyway, it is worrisome when your own people behave in this way. You are also justified in feeling that she may make a false complaint. Where is your son's mind in this matter? I think he should also be worried about the way things are changing. Is he unable to or has he tried to talk to his wife? At this point, let no one else interfere and let him be the sole person to deal with her.
He knows the challenges at home and will know what to do. So kindly request your son to step in (if he hasn't already done that) and sort this out in the most amicable manner. This first step will then determine the future course of action.
Having said this, I do want the family to recall if there has been any instance that has triggered your daughter-in-law to act this way. That will give you an idea to proceed in the right direction.

Best wishes!
(more)
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