By Ishita Ganguly

Copyright startuppedia

“Apart from the emotional toll that divorce brings to individuals, a new study by 1 Finance Magazine disclosed the financial consequences of separation in India.Advertisment The survey by 1 Finance Magazine The survey examined 1,258 divorced individuals or those undergoing divorce across Tier 1 and Tier 2 cities, in age groups between 22 to 54 from varied professional, educational, and family backgrounds. Responses were collected through telephonic and in-person interviews based on financial challenges before, during, and after divorce. The key findings on the financial consequences of divorce are as follows About 49% of men reported spending over Rs 5 lakh, compared to 19% of women. Nearly 42% of men took loans to pay for alimony or legal costs, and 29% reported negative net worth after paying alimony. On average, 38% of a male”s annual income had to be used for maintenance. Women often received substantial financial support after separation, with over 53% receiving more than 50% of their husband”s net worth, and 26% receiving more than 100%, indicating the financial shift after divorce. Financial dynamics in marriage Money-related conflicts were common, with 67% of respondents reporting frequent arguments over finances. Nearly 46% of women reduced their work intensity or quit their jobs after marriage, and 56% were in lower income brackets than their husbands. Varied household expense management 43% of women reported their husbands handled expenses alone, while 50% managed finances jointly. Financial disputes contributed directly to separation in 43% of cases, stressing the importance of economic compatibility. Keval Bhanushali, Co-founder & CEO of 1 Finance, noted, “Financial incompatibility is among the leading causes of divorce. In our survey, 67% of respondents reported frequent money-related arguments. The costs of divorce then compound the strain, creating a vicious spiral of financial instability.” Kanan Bahl, Editor-in-Chief of 1 Finance Magazine, added, “Discussing finances has long been a taboo in Indian society. That financial disputes contributed to divorce in nearly half of the cases underscores the need for clear agreements on debts, family responsibilities, and lifestyle expenses before marriage.” Also read: OpenAI rolls out Sora 2, its most advanced video generation model to rival TikTok, YouTube (startuppedia.in)”