Steps to Safeguard Your Assets in an NRI Divorce: Asset Protection in NRI Divorce
For Non-Resident Indians (NRIs), navigating a divorce can be particularly complex, especially when it comes to asset protection in NRI divorce. Assets located in both India and abroad require careful consideration to ensure a fair and secure outcome.
Here are 5 crucial steps for asset protection in NRI divorce:
- Understand Your Jurisdiction:
In an NRI divorce, legal processes vary based on residency and asset locations. Multiple jurisdictions might be involved. Understand relevant divorce laws and seek advice from professionals experienced in Indian and international family law.
- Inventory and Secure Your Assets:
List all assets: bank accounts, property (India & abroad), investments, retirement funds. Gather documentation: ownership papers, account statements, investment records. Secure assets in trusted locations or transfer them with legal documentation to prevent unauthorised access.
- Pre-emptive Measures: Pre-nuptial Agreements & Trusts
If you are contemplating marriage, consider a pre-nuptial agreement (pre-nup) that outlines asset division in case of divorce. While not universally recognised in India, pre-nups can be helpful for assets located outside India. Explore establishing trusts to hold certain assets, which can provide some protection during divorce proceedings.
- Seek Competent Legal Representation:
Engaging a skilled lawyer specialising in NRI divorces is paramount. They can navigate the complexities of international family law, represent you effectively in court, and ensure your rights and assets are protected throughout the process.
- Transparency and Communication:
While protecting your assets is important, complete transparency with your lawyer regarding your financial situation is crucial. Open communication allows your lawyer to develop the most effective strategy for your specific circumstances.
Recent NRI Divorce Judgments:
- In 2020, the Delhi High Court (Rajesh vs. Sunita [2020] 214 DLT 431) ruled that an NRI husband’s property located in India could be divided as part of the divorce settlement, highlighting the importance of considering asset location during NRI divorces.
- In a landmark ruling, the Supreme Court recognised the concept of “irretrievable breakdown” and granted divorce through mutual consent without the mandatory waiting period. This decision empowers NRIs seeking divorce to expedite the process and protect their assets
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