Divorce costs: 42% of men took loans for alimony, legal costs, says survey

Marriage is often entered into with the hope that it will last a lifetime. Yet, when a marriage ends, it can trigger a flood of emotions — anger, sorrow, worry, and fear — often surfacing at unexpected moments. While the emotional toll of divorce is well acknowledged, a new study by 1 Finance Magazine highlights the profound and often overlooked financial consequences of separation in India.

The survey examined 1,258 divorced individuals or those undergoing divorce across Tier 1 and Tier 2 cities, covering age groups 22 to 54 and a mix of professional, educational, and family backgrounds. Responses were collected through telephonic and in-person interviews, focusing on financial challenges before, during, and after divorce.

Key findings

Financial consequences of divorce: The costs of divorce can be significant. About 49% of men reported spending over Rs 5 lakh, compared to 19% of women. Nearly 42% of men took loans to cover alimony or legal proceedings, and 29% reported negative net worth after paying alimony. On average, 38% of a male’s annual income went toward maintenance.

Women often received substantial financial support post-divorce, with over 53% receiving more than 50% of their husband’s net worth, and 26% receiving more than 100%, illustrating the financial shift after separation.

Financial dynamics within 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.

Household expense management varied: 43% of women reported their husbands handled expenses alone, while 50% managed finances jointly. Financial disputes contributed directly to divorce in 43% of cases, highlighting 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.”

Recommendations for couples

The report urges couples to discuss key financial questions before marriage:

Who will support aging parents?

How will existing loans and debts be managed?

What are shared financial goals, and how will they be funded?

What is the acceptable lifestyle and monthly budget?

How will income volatility be handled?

Who will manage long-term financial planning and investments?

Open conversations and clear agreements on these issues can help build financial compatibility, reducing the risk of conflicts and easing post-divorce adjustments.

Legal and emotional context

Divorce in India, historically rare, was formalized under the Hindu Marriage Act of 1956. Legal proceedings can be lengthy and emotionally draining, particularly if child custody or appeals are involved. A mature, amicable approach to separation can limit emotional damage, shorten legal battles, and protect the well-being of both spouses and their families.

The study underscores that while divorce is emotionally challenging, financial preparedness and open communication can help couples navigate the process with dignity and stability.