The Award of Maintenance or Permanent Alimony should not be Penal but to Ensure a Decent Living Standard for a Wife: Supreme Court

Recently, the Supreme Court (SC) of India held that the award of maintenance or permanent alimony is to ensure a decent living standard for a wife. In the present case, the bench ordered the dissolution of the marriage directing the husband to pay Rs. 2 crore permanent alimony to his wife. The matter was heard by a two-judge bench of the Supreme Court constituting Justice Vikram Nath and Justice Prashant Kumar Mishra. The decision was made after considering multiple judgments of the top court in similar cases. While hearing the matter, the SC bench elaborated on the factors to be considered for determining the quantum of maintenance. It further observed, “...there is no fixed formula for calculating maintenance amount; instead, it should be based on a balanced consideration of various factors.” The factors include but are not limited to: 

• “Status of the parties, social and financial.
• Reasonable needs of the wife and dependent children.
• Qualifications and employment status of the parties.
• Independent income or assets owned by the parties.
• Maintain standard of living as in the matrimonial home.
• Any employment sacrifices made for family responsibilities.
• Reasonable litigation costs for a non-working wife.
• Financial capacity of husband, his income, maintenance obligations, and liabilities.”

The SC bench added, “The status of the parties is a significant factor, encompassing their social standing, lifestyle, and financial background. The reasonable needs of the wife and dependent children must be assessed, including costs for food, clothing, shelter, education, and medical expenses. The applicant’s educational and professional qualifications, as well as their employment history, play a crucial role in evaluating their potential for self-sufficiency. If the applicant has any independent source of income or owns property, this will also be taken into account to determine if it is sufficient to maintain the same standard of living experienced during the marriage. Additionally, the court considers whether the applicant had to sacrifice employment opportunities for family responsibilities, such as child-rearing or caring for elderly family members, which may have impacted their career prospects.”

Following this, the top court said that the financial capacity of the husband is a critical factor in determining permanent alimony. It added that the actual income of the husband, his reasonable expenses for his own maintenance, and any dependents he is legally obligated to support are to be examined by the court efficiently. His liabilities and financial commitments are also to be considered to ensure a balanced and fair maintenance award. In context to the present case, the top court observed, “It is evident from their submissions that though both of them are well-qualified and gainfully employed, the respondent-husband earns approximately five times the monthly income of the appellant-wife. Respondent-husband has certain obligations towards three dependants, his own expenses, and certain bank loans, but he also evidently has the financial capacity to maintain his former wife.” 

The Supreme Court also pointed out that there is no doubt that the respondent has the legal obligation as well as the financial capacity to maintain his wife after the dissolution of marriage. Further adding, the bench said, “It is also necessary to ensure that the award of maintenance or permanent alimony should not be penal but should be for the purposes of ensuring a decent living standard for the appellant wife.” After hearing the matter from both parties, the top court concluded, “Keeping in view the totality of the circumstances, the social and financial status of the parties, their current employments, as well as future prospects, standards of living, and their obligations, liabilities, and other expenses, a one-time settlement amount of Rs. 2 Crores, would be a balanced and fair amount. This amount would also cover all pending and future claims.” The SC ordered the respondent-husband to pay the said amount as permanent alimony to the appellant-wife within 4 months.