Last Updated on September 1, 2021 at 7:07 pm
It is common knowledge that Gautami and Kamal Hassan split in Oct. 2016 after a 13-year live-in relationship. Yesterday (Feb 24, 2018) she published an eloquently worded article on her blog distancing herself from Kamal. Eloquent because there is much to read between the lines, but that research aside, I would like to focus on the financial aspects of the article and the associated dangers of a live-in relationship.
Before we begin, while I shall quote from Gautami’s article, I have no interest to talk about both individuals, their respective children or their choices. Please view this issue from the financial security of an individual after a split from a committed relationship, but without legal sanction.
Here is the only quote from the article relevant to this post:
The period since my walking out has been consumed by my efforts to rebuild a stable and secure environment for my daughter and myself. An environment where we could breathe free of the stress and tension of a greatly traumatic situation.
My single greatest focus during this period has been to establish a stable income to ensure my child’s financial stability. During the nearly thirteen years of our life together, the work that I did as Costume Designer, was only for films produced by Raajkamal Films International, (RKFI), and for films that Mr. Haasan made for other producers. And this was my primary source of income as my working both in front of and behind the camera in other’s projects was actively discouraged. In addition to this, it grieves me greatly to have to say that as of October, 2016, I had salary dues pending right from earlier films like Dasavataram, Vishwaroopam, etc.
As these pending salary dues were the only financial resource at the time for rebuilding my life, I had made repeated efforts to recover the payments from Mr. Haasan and RKFI. I am deeply anguished to say that inspite of repeated entreaties and requests, there is still a significant amount from my due salary pending payment.
This is one side of the story, we don’t know the other side and in any case, I have no interest in getting judgemental.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! 🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
Let us use this situation to construct an example:
Say, Tarzan runs a business. He marries Jane and she helps him run the business but does not draw a salary per se. If thing turn sour after a few years and they decide to divorce, what is Jane entitled to?
I am no legal expert and from what little I saw on the web, Jane is entitled to anything from 50% of all assets* and 50% of future income to zero! It depends on the “circumstances” and there is no set rule. However, it is more than a fair assumption that Jane would have secured a fixed alimony component and with some luck a variable alimony component depending on profits as she had played a part in building it (in case of a dispute, Tarzan will have to disprove her role).
* except for ancestral property.
If T & J had multiple properties, it is more than possible that she could get to live in one, post-divorce. The point is fairly obvious. Jane is surely entitled to “some benefit” even if she is capable of earning her own income. It may or may not allow her to spend and live as she did before the divorce, but with a competent divorce lawyer, her financial security will not be in danger.
Now, what if T & J were in a live-in relationship?
If one of them dies, then the other can get control of the full assets. Their children can inherit property as the Supreme court has previously ruled, “Couple living together will be presumed married”. However, this could be contested by other relatives, but there are precedents to quote.
What happens if they break-up? Can Jane ask for maintenance and/or a share in the profits of the business they used to run together? I think it is possible, but it would be a hard battle to fight! Can one use the “presumed married” argument to get support? Grey area!
Legislation for “live-in” relationships is still a work-in-progress in India and seems to move “forward” only if there is an appeal. This is a good read about the challenges
It is clear that couples in a live-in relationship should be very clear about who owns what and ensure their financial independence “just in case”.
Please note, I did not intend this to a “gossip post”. I think this is a real problem that is likley to affect more and more Indians in future. If you know of any case where a partner has won financial support after a break up from a live-in relationship, please share a link in the comments.
If you have legal expertise in the matter, please share your thoughts. Kindly avoid making any comments on Kamal or Gautami’s choices.
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)