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Alimony or maintenance, is a form of financial assistance given to a former spouse following a divorce. This support is typically granted if the recipient spouse lacks sufficient means for the basic necessities. While the Hindu Marriage Act permits either spouse to receive alimony, it is generally husbands who are required to provide maintenance or alimony to their wives.

In India, alimony can be categorized into two types: interim alimony, which is provided during court proceedings, and permanent alimony, which is granted upon judicial separation or divorce.

Permanent alimony, as outlined in Section 25 of the Hindu Marriage Act, is awarded to wife or husband to ensure financial support and well-being. According to Section 25(1) of the Act, 

"Permanent alimony and maintenance- Any court exercising jurisdiction under this Act may, at the time of passing any decree or at any time subsequent thereto, on application made to it for the purpose by either the wife or the husband, as the case may be, order that the respondent shall pay to the applicant for her or his maintenance and support such gross sum or such monthly or periodical sum for a term not exceeding the life of the applicant as, having regard to the respondent's own income and other property, if any, the income and other property of the applicant, the conduct of the parties and other circumstances of the case, it may seem to the court to be just, and any such payment may be secured, if necessary, by a charge on the immovable property of the respondent."

Typically, the court will mandate that the respondent provide periodic payments, although lump-sum payments may be granted in cases of mutual divorces or if the plaintiff specifically requests it. Periodic payments will terminate upon the death of either spouse or on a date decided by the Court.

Factors on Which Alimony is Decided:

When determining the amount of alimony to be granted, courts generally consider the following factors:

• The income and assets of each spouse;

• The behavior of each spouse during the marriage;

• Any necessary deductions, such as income tax or loan payments, that may impact the spouse's net income;

• The obligations of the paying spouse, such as supporting dependent parents;

• The social status and standard of living of both spouses;

• The age and health of both spouses;

• The duration of the marriage;

• The expenses associated with raising and educating any children;

• The unique circumstances and facts of each individual case will also be considered.

Quantum of Alimony:

When alimony is paid periodically: 

In situations where alimony is paid periodically or monthly, it is generally set at 25% of the husband's total monthly income. The Supreme Court of India has deemed this percentage to be an appropriate and equitable benchmark. However, it is crucial to bear in mind that there are no universal rules for alimony, as each case is unique and influenced by various factors and circumstances.

When alimony is paid in a lump-sum amount: 

The rules governing divorce alimony stipulate that there is no fixed standard for a one-time settlement payment. Typically, such a payment ranges from 1/5th to 1/3rd of the husband's total assets and is made as a lump-sum payment.

If the wife is working and earning good: 

If the wife is employed and earning a significant salary, her income is factored in alongside her husband's earnings when determining alimony payments. Based on these financial details, the court determines whether the wife is entitled to receive alimony and, if so, the appropriate amount is decided upon, taking all relevant factors into account.

If the husband earns less than his wife:

A Hindu husband may be eligible to receive alimony from his wife if his income is significantly lower than his wife or if he is unemployed. However, such cases are rare.

Divorce by mutual consent:

If a couple decides to divorce by mutual agreement, the question of whether one party should pay alimony or maintenance is up to them to decide. This can involve either the husband or wife providing financial support to the other, based on their mutual understanding. The court then issues directives in accordance with the agreement between the couple, which binds both the parties. 

Landmark Case:

Kalyan Dey Chowdhury Vs Rita Dey Chowdhury, Civil Appeal No. 5369 of 2017, The Supreme Court of India

This case set a precedent which has a profound impact on court decisions across the country. The court's ruling established that alimony serves to balance the financial circumstances of both parties. The court further clarified that individuals with lower or no income should receive no more than 25% of their former partner's income in alimony payments. This decision effectively safeguarded the rights and interests of both parties involved.

"25% of the husband’s net salary would be just and proper to be awarded as maintenance to the respondent-wife. The amount of permanent alimony awarded to the wife must be befitting the status of the parties and the capacity of the spouse to pay maintenance. Maintenance is always dependant on the factual situation of the case and the court would be justified in molding the claim for maintenance passed on various factors." the Hon'ble Supreme Court observed.

References:

https://blog.ipleaders.in/how-to-establish-how-much-alimony-you-should-get-in-case-of-divorce/

https://www.adityabirlacapital.com/abc-of-money/how-is-alimony-calculated-in-india

https://vakilsearch.com/blog/alimony-laws-on-divorce-in-india/