Financial Precautions to Consider Before Marriage Expert Insights from Deepika Narayan Bhardwaj

Marriage is one of the most significant milestones in life, but it also comes with financial implications that many overlook. To safeguard against potential pitfalls, financial due diligence is as essential as emotional readiness. Ms Deepika Narayan Bhardwaj, Founder of Ekam Nyaay Foundation, shares key financial insights to help individuals avoid getting ripped off.

What financial due diligence should you conduct before marriage?

Just as companies conduct background checks before hiring employees, individuals should verify their partner’s financial and professional background. This may feel awkward in traditional societies, but it’s crucial to avoid regrets later.

Consider hiring professional agencies for background checks, which typically cost between ₹75,000 and ₹2.5 lakhs. This small investment is negligible compared to the ₹25-30 lakhs often spent on weddings.

How much alimony could be expected in case of a divorce?

Alimony doesn’t follow a fixed formula, it varies based on financial status, lifestyle and whether children are involved. In some cases, men have been required to pay alimony equivalent to 6-10 years of their salary, even taking loans to meet the demands.

What key financial steps should be taken before marriage or during divorce to avoid legal hassles?

Proper documentation is critical for both men and women. Record all wedding-related transactions, such as gifts, jewelry and expenses, in compliance with the Dowry Prohibition Act. This act requires both parties to list and sign off on all exchanged items, which can help in case of disputes.

Transparency in daily expenses during marriage such as travel, home costs and personal outlays is equally important. Maintaining clear financial records can provide vital evidence in legal proceedings.

Can illegitimate wedding expenses lead to legal trouble?

Claims of outrageous wedding expenses, such as ₹50 lakhs spent in cash, must be backed by documentation. Courts often dismiss such unverified claims.

In some instances, grooms have filed tax evasion complaints against in-laws who made unsubstantiated claims of spending large sums. A notable case in Gujarat involved a man whose father-in-law was jailed for possessing unexplained wealth. These cases highlight the importance of financial transparency.

How do courts handle alimony claims when a woman quits her job during divorce?

Courts are increasingly scrutinising claims of unemployment during divorce proceedings. In one case, the Chief Justice of India advised a highly qualified woman to seek employment rather than rely solely on alimony.

Is there a need for financial planners in divorce cases?

Absolutely. Divorce financial planners play a critical role in navigating the complexities of asset division, alimony and future financial planning. Culturally, many individuals react to financial crises rather than prepare proactively. Having a financial planner can help foresee and mitigate potential issues, especially for those with significant assets.

Read the complete interview in the fourth edition of 1 Finance Magazine.

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