Divorce Insurance & Gender-Neutral Alimony Spark Debate, Can India's Next Legal Reform Protect Modern Marriages & Break Financial Bias?

Divorce in India is no longer a rare event. While the national rate still hovers around 1 percent, big cities like Delhi, Mumbai, and Bengaluru are seeing more second and third marriages end in divorce. According to a 2025 survey by the Legal Crusader Group, family courts are now handling 30–40 percent more divorce cases than a decade ago. The Litem 2023–25 survey shows that many men are even taking loans to pay for alimony and legal fees.

India’s Diverse Divorce Laws

India has many different marriage laws based on religion. Under the Hindu Marriage Act, both men and women can file for divorce under conditions like adultery, cruelty, or desertion. Muslim marriages, governed by the Muslim Personal Law, also offer multiple ways to end a marriage, including Khula (when the wife initiates divorce) and Mubaraat (mutual agreement). Recent court decisions in Gujarat and Telangana have even approved verbal mutual consent for Muslim divorces.

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Financial Strain Is Real

Divorce can be very expensive in India. A person can lose up to 70 percent of their net worth during a settlement. Men often report taking loans to cover divorce costs, including alimony and child care. With more people entering second or third marriages, the financial risks are growing. Experts say this creates a need for financial protection, especially in urban areas where divorce is more common and socially accepted.

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What Is Divorce Insurance?

Divorce insurance is a new kind of policy that gives financial support if a marriage ends. It is usually bought by both spouses together and becomes active after a waiting period (typically 48 months). It can cover legal fees, alimony, child support, asset division, and even emotional counseling. If one partner loses health insurance after divorce, this policy can help with new coverage.

Unlike traditional alimony, which is usually paid by the man, divorce insurance aims to be gender-neutral. It uses actuarial science (similar to life insurance) to decide who pays how much—based on both spouses’ incomes, jobs, loans, and dependents. This makes the process more fair and balanced.

Toward Gender-Neutral Alimony

In today’s India, many women also earn equal or even higher incomes than men. So, alimony should not be assumed as a woman-only right. A fair system should calculate support based on financial realities—not gender. Lawyers and courts can act as neutral third parties to verify divorce claims and ensure payouts are legal and fair.

A Modern Solution for Modern Marriages

India is changing. With rising divorce rates, expensive settlements, and new gender roles, divorce insurance and gender-neutral alimony could be the next big legal reforms. These steps could help couples plan better, reduce emotional and financial stress, and support a more equal and modern society.

[Nishtha Ranjan, Programme Coordinator, BIMTECH]