Title: Understanding the Financial Rights of LGBTQ Couples in India
In a recent landmark decision, the Supreme Court of India declined to grant legal recognition to same-sex marriages, urging the Parliament to address the matter through the Special Marriage Act. However, the court did emphasize the importance of ensuring that the LGBTQ community is not discriminated against. As LGBTQ couples face legal and societal obstacles, it becomes crucial to comprehend and secure their financial rights.
Opening a Joint Bank Account:
Fortunately, there are no restrictions on opening joint bank accounts for LGBTQ couples. Adhil Shetty, CEO of BankBazaar, a leading financial marketplace, states that any two individuals can open a joint account, regardless of their relationship status. The Reserve Bank of India does not discriminate based on gender when it comes to opening accounts, making it accessible for LGBTQ couples to operate joint accounts or even open fixed deposits together.
Joint Home and Car Loans:
However, when it comes to joint applications for home loans or car loans, LGBTQ couples face hurdles due to the absence of legal recognition of same-sex marriages in India. Anny Ghosh, a Senior Consultant at Alpha Capital, a wealth management firm, explains that a mandatory requirement for joint home loan applications is proof of relationship, which includes a marriage certificate for couples. Financial institutions are working towards implementing policies, but progress is slow without clear directives from regulatory and legal bodies.
Financial Implications of Adopting Children:
Adoption regulations in India do not prohibit LGBTQ individuals from adopting based on sexual orientation. However, LGBTQ couples can only adopt as a couple if same-sex unions receive legal recognition. Currently, live-in couples are not permitted to adopt. In cases of adoption, the child will be recognized as the child of only one parent, hindering the recognition of both LGBTQ partners as legal parents for inheritance and succession purposes. It becomes necessary for the other partner to confer inheritance benefits to the child through a will.
Financial Implications of Separation and Death:
It is crucial to note that separation or death of a partner does not automatically confer specific rights or benefits on either partner. In the event of a partner’s death, inheritance benefits will not be granted unless specifically mentioned in a will. Mani Gupta, partner at Sarthak Advocates & Solicitor, clarifies that the surviving partner will not be entitled to maintenance or alimony. Retirement and pensionary benefits will also not be transferable between partners.
Inheritance and Property Rights:
The court’s decision effectively maintains the status quo on inheritance and property rights for LGBTQ couples. Without legal recognition as spouses, LGBTQ couples are unable to claim benefits of intestate succession, which applies to cases of death without a will. However, couples may confer inheritance benefits through a will, allowing for the recognition of their chosen beneficiaries.
As LGBTQ couples navigate legal and societal complexities, understanding their financial rights becomes paramount. While progress is being made in some areas, the absence of legal recognition for same-sex marriages in India remains a significant hurdle. Advocacy and further legal reform are crucial to ensure equal financial rights for the LGBTQ community.