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Fight Back (Analyst)     05 April 2014

Right of wife on property during divorce

Hi All,

I'm currently going through DV, 498a and Divorce cases since 2011 sept.

My question is, I do not own any property and also my parents have no property. If I plan to invest some money in a bank or say mutual funds, can I do it in my parents name? Whose name would be better Father or Mother?

 

Thanks



 4 Replies

Gautam Kapoor (IT professional Studying Law)     06 April 2014

I will give you my bank account.. you can deposit money in my account.... :) PUN apart ... DO NOT CARRY ANY FINANCIAL TRANSACTION WITH DV ON.... THIS WILL HELP YOU LATER...

Gopal Arora (Engineer)     06 April 2014

There are two aspects to this question

1. Legal

2. Tax Implications

I was advised by my lawyer to not to invest in any property/bank/FD etc because wife will try to bring all my properties/ money/ investments etc. in court to get more alimony during divorce. He advised me to buy gold in small amounts or in some way that my PAN is not submitted during purchase. It is upto you to decide whether gold is a good or bad investment. Other advice was to give money in cash (not cheque or electronic transfer) to parents  and let them invest in property/Mutual fund/ etc. 

Tax: If you give money to your parents then there is no tax implications for giving money. Money earned as interest or profit from mutual funds etc. will be taxable. So, it is advised to invest in the name of person, who will pay less tax. For example, if your mother has less income than your father then better to invest in mother's name. 

Fight Back (Analyst)     06 April 2014

Thanks for the replies. My worry was more about my wife claiming share of investments that are made in my parents name out of their own earnings.

Will she have any right on the investments made by my parents?

Vineet   03 October 2015

Same question is in my mind. Can Wife or her son claim in the ancestral property. Investment and properties purchased by husband at the time of DV case going on.


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