Bengaluru Techie Atul Subhash Suicide Case: 5 Money Lessons To Never Ignore During Divorce

Atul Subhash Case: The tragic case of Atul Subhash, who ended his life amid legal disputes over alimony and divorce proceedings, has sparked serious discussions about the financial and emotional burden of separation. This case highlights the urgent need for individuals to take swift and informed financial steps to navigate divorce effectively.

Why divorce can lead to financial crisis

Divorces in India, particularly for middle-class families, are financially draining due to legal fees, asset division, and alimony disputes. For couples undergoing grey divorces—separations after age 50—the challenges can extend into retirement planning, often leaving individuals unprepared for the sudden financial shifts.

Steps to secure your finances during divorce

Take control of your finances immediately

• Document everything: List your assets (like property, bank accounts, and investments) and liabilities (like loans or shared bills).
• Close joint accounts: Shut joint bank accounts or convert them to individual accounts to avoid future liabilities if your ex defaults.
• Track credit reports: Monitor your credit score regularly to ensure no damage occurs from shared obligations.

Budget for your post-divorce life

• Build a new monthly budget considering essentials—rent, insurance, child support, and daily expenses.
• Experts suggest creating an emergency fund to cover 6-12 months’ worth of expenses. This cushion can help during uncertain periods when settlements are delayed.

Be strategic about asset division

• Prioritise liquidity: While property or businesses may appear valuable, liquid assets like mutual funds or fixed deposits are often more practical for immediate needs.
• Understand tax implications: Alimony payments are tax-free up to a certain limit in India, but rental income from property settlements is taxable. Factor this into negotiations.

Also fighting for large assets like homes may seem worthwhile, but maintenance costs can drain your finances later.

Safeguard long-term goals

•    Update insurance policies, retirement plans, and beneficiaries to reflect your current needs.
•  Account for inflation and future expenses when negotiating settlements. Long-term planning can prevent financial strain years down the line.

Plan for your children’s future

•  Decide custody arrangements and co-parenting responsibilities clearly to avoid future conflicts.
•  Set up trusts for children’s education, healthcare, and welfare. Trusts are a reliable way to protect funds for minors while preventing misuse by either parent.

Lessons from the Atul Subhash case

The tragic outcome of the Atul Subhash case sheds light on how unresolved financial disputes and emotional distress can escalate to dangerous levels. Seeking both legal and financial counsel early in the divorce process can be considered. Financial advisors and legal experts can help individuals negotiate settlements without emotional bias, ensuring fair outcomes.  A divorce may end a marriage, but it shouldn’t end your financial independence or peace of mind.