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Abhishek (Senior Consultant)     15 February 2014

Gifting property

Hi, I am not doing well with my wife and we are living separately for 2 months now. They are eyeing my property and threatened me of filing criminal cases. I had applied for Anticipatory Bail though there was no NC or FIR against me( just done that so that me and my family was safe). Now the court wants her to appear in the court to know what went wrong and also for mediation.

In the meanwhile I am thinking of gifting my property to my Brother( I can trust him totally) would the court in future be able to revoke it? Would my plea for Anticipatory Bail that now has resulted into mediation be considered by the court as a divorce like situation and hence think that I am gifting it to avoid giving property to my wife? I dont want to lose the property to her. I want to basically know how safe it is to gift deed it now, when the matter has already somehow reached the court.

 

Thanks,

Abhishek



Learning

 13 Replies

DV Act Buster (CEO)     15 February 2014

If there is no injunction granted to wife by any court against you , then you have all the legall right to gift it specifically if thr property is entirely & exclusively owned by you and bought with your own money. Better to do it now than later. If she files DV case then she will immediately get a legal right to stay there and you will not be able to remove her.

Samir N (General Queries) (Business)     15 February 2014

DO NOT TRANSFER ANY PROPERTY TO ANYBODY'S NAME TO PREVENT THE COURTS FROM GRANTING ANY RELIEF TO YOUR WIFE ON THOSE PROPERTIES.  MANY ADVOCATES GIVE THIS WRONG ADVICE.  PLEASE CONSIDER THE FOLLOWING ARGUMENTS AGAINST SUCH ADVICE:


No matter how much your trust someone TODAY, that can change anytime in the future. Be practical. Your brother will someday get married. You may get remarried too. The equation between the wives involved can change quickly. Once you transfer the flat to someone else, its gone forever, legally speaking.


More importantly, Judges are not stupid, especially High Court ones. There is something in law which is referred to as  "fraudulent conveyance."  It refers to conveying or transferring some property or asset with the intent to avoid some liability involving that asset. You will be doing precisely that and a good advocate on your wife's side will easily get it reversed. 


Finally, the law is clear: An ex-wife or wife only gets right to residence not right to the property. At most she will get a right to live there until a final decree is passed with alimony, maintenance, etc.  No big deal.  Worst case live with this scenario rather than getting into unnecessary unknowns of the future.


Abhishek (Senior Consultant)     16 February 2014

@DV Act Buster and @Samir: Thanks for the inputs. I would still think gifting as a good idea because at least by that way I am making it tough for her, again Samir sir wont things go bad to worse if Irretrievable Breakdown bill gets passed? I stand to lose 50 percent of my property then and also my dads property. At least by gifting I am making it tough for her.

Samir N (General Queries) (Business)     16 February 2014

Let us say that Irretrievable Breakdown Bill gets passed, even then, any good advocate will show that you transferred title to escape your liability and that will be the end of the transfer.  Yes, you are making it harder for her but you are also incurring potential losses and inviting risks on other fronts.

gautam (not disclosed)     16 February 2014

Do we have any judgement that the property transfer (Gift) was reversed by any court order, even if malafide intentions are proved?

rising up again (FFF)     16 February 2014

if u can prove that u are not earning much, have liabilities on ur had...and hence 'have to' sell ur property to pay debts... its better to sell it off.. then buy a property in ur parents name...

else face it !!!    gifting is of no help....infact it might add more trouble for u !

DV Act Buster (CEO)     16 February 2014

@ SamirN, yes, it would be interesting to see any such judgements where a gift or sale of property was reversed by any court when the property was self acquired and exclusivrly owned by husband before or after marriage and without any injunction.

Samir N (General Queries) (Business)     16 February 2014

I am sure that I came across one when I was going through my divorce litigations. But that would be heresay. Suppose I was in Court as an advocate for the wife and opposing counsel argues before the Judge that I should present a Judgment where such a transfer was reversed... I would argue that opposing counsel should provide a Judgement where such a transfer was litigated and argued and the Supreme Court or the applicable High Court has NOT reversed such a transfer.  I would then ask the trial Court to issue a Judgment and appeal and appeal... If I am convinced that I am on good legal footing, I will go all the way to the Supreme Court and get a ruling in my favor. But in this case, I think the High Court will see the legal basis and reverse such a transfer because the transfer diluted third-party rights... the right to residence of the wife.


Good advocates make new judgments. Mediocres rely on existing ones. Bad ones do neither of the two!


My contention would only be applicable to a property where the wife would have a right to residence. 

 

gautam (not disclosed)     16 February 2014

what if a husband is ready to move to rented accomodation and provide wife with right to residence?

isn't it accepted?

great india (manager)     17 February 2014

Do one thing. Gift it to a close relative first. Take a rental accommodation at a distant place Ask wife to join or shift in Wait for few months and sell it off. Then invest money smwhr else without the knowledge of your wife.

rising up again (FFF)     17 February 2014

u cannot buy a new property in your name..as u will have to give ur pan number for the same and in courts....u will have to announce your assets when asked to. even if u sell the old one, buy a new property is some other name...anyone whom u trust ...and i guess..noone best than ur parents... 

 

and if u still have time....before u file ur case...even if 5-6 months.., u may transfer it now.. saying that u had to ensure ur parents old age safe and secure. (incase u have 1-2 extra properties) if u have just one...then tk a rented, sell it off...show u in debts...and buy a new one in ur parents name.... then fight the case.....as a fighter. 

Abhishek (Senior Consultant)     18 February 2014

Can I sell it off and give away the money to my brother? For actually he had bought the house...I was really earning meagre when the house was bought....can I make a back dated gift deed like one in 2013 and register the deed now....or for that matter can even make a back dated sell deed and sell it now by registering it now. Basically a past paper that was notarized and not registered. Register it now. Shows the intent that deal was agreed upon in the past and executed now.


(Guest)

I gifted 80% of my property before divorce petition arrived. Later I gifted remaining 20%. As per law, gift cannot be reversed. If I gift my property to my mom or brother then I am paying stamp duty as per current market index. Also it is written in registrar's office that no objection certificate is not necessary. Now If I want my property back my mom or brother has to give their share again to me by paying stamp duty. If wife's lawyer says I cheated then I will ask him show me in the law where gift can be reversed. Also wife has right to residence. If I am ready to give her rental apartment then court has no power to force me to keep her in the same house.


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